Important Pension Legislation Expected to Pass Congress Soon
The Wall Street Journal reported today that a pension relief bill is expected to clear Congress before the end of the week. The bill will address concerns for United and other businesses scheduled to make their first quarterly plan contributions for 2004 on April 15 th. The two-year bill allows employers to use a more favorable treasury rate to calculate assets and liabilities -- a change that could add up to $80 billion in savings through 2005. Steel and airline companies will benefit as well from additional provisions saving an estimated $1.6 billion in deferred contributions over the next two years. You will recall that the deferred contributions were our primary focus during our lobby efforts to address the deficit reduction contributions that would speed up United’s required payments, placing employee pension plans and bankruptcy emergence in jeopardy.
The House of Representatives overwhelmingly passed this important legislation. Until the bill is approved in the Senate, we encourage you to continue to call your Senators and urge them to support H.R. 3108, the Pension Stability Act, to protect pension benefits for United employees. Use the website www.senate.gov to find your Senators’ contact information, or dial the Capitol Switchboard at 202-224-3121.
We will update you as soon as we get confirmation about the Senate’s action.
