U.S. Representative Sandy Levin
12th District of Michigan

(Washington D.C.)- U.S. Rep. Sander Levin (D-MI), a senior member of the House Ways and Means Committee, took to the House floor during debate to detail the dangerous provisions in the bill for the manufacturing sector and defined-benefit pensions which provide guaranteed monthly retirement payments.  House Republicans offered a closed rule shutting out any opportunity for debate or discussion on the Democratic Alternative.

“We need to strengthen and save defined-benefit plans in this country,” said Rep. Levin. “This bill will not strengthen and preserve defined-benefit pension plans, but will weaken and overtime eliminate them. Let us stand up today for a defined-benefit system in this country.”

Even though it was explicitly requested by Levin during Committee markup over a month ago, both officials from the Bush Administration and the Majority have been either unable or unwilling to answer how these changes to the pension rules will affect different industries. Currently, there are 44 million workers covered by defined benefit plans. 

The bill’s provisions would make it more difficult for companies to offer guaranteed pensions at a time when many of them are already struggling.  The bill is also likely to force companies, especially those with older workforces, to make large and unpredictable contributions to their pension funds, making it more difficult for them to invest in staff and new products needed to be globally competitive.

“This Republican Bill discourages companies from doing the responsible and sensible thing,” continued Levin.  “Sixty-percent of Chief Financial Officers who deal with pension plans say this bill will lead to benefit cuts and the termination of defined-benefit plans, affecting manufacturing and other industries.”

The bill now goes to conference with the Senate, where on every key issue the Bush Administration has vowed to move the bill further in the wrong direction.

The Democratic Alternative would have preserved the basic structure of the defined-benefit system, making it more likely that companies could continue providing coverage, while better protecting workers from losing pension benefits due to bankruptcy, requiring pension plans to provide employees with reliable information about plan investments, and not adding to the national debt. 

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