Representatives Earl Pomeroy (D-N.D.) and Pat Tiberi (R-Ohio) Tuesday introduced the Preserve Benefits and Jobs Act, which seeks to provide reasonable pension funding relief to employers facing a troubled financial market.
"Today employers...struggle to navigate in a severe recession. They face decreased cash flows, typed credit lines and they need to fund up the very significant book losses that they have on their investments from 2008...under a short 7-year time frame," stated Pomeroy during an afternoon press conference.
The Congressmen believe that, due to the economic crash last year, companies will either freeze their pension plans, continue to increase them or cut their workforce to make up for these losses. The two stated that they hope that this bill will give employees the security they need in knowing that they can continue working and that their retirement benefits carry on progressively.
"When a pension is frozen, workers in their fifties can expect a drop in benefits of about 35%, even when combined with a 401k coming along as a replacement...a huge setback for someone's retirement plans," said Pomeroy.
The bill proposes two alternatives for struggling employees: a nine-year program with payments of interest-only during the first two years or a fifteen year payment schedule that requires specific conditions.
"This bill...is a vehicle...to help Americans across the country as they struggle with [a tough economy]," said Tiberi.
Congressmen Introduce Legislation To Protect Pensions
Representatives Earl Pomeroy (D-N.D.) and Pat Tiberi (R-Ohio) Tuesday introduced the Preserve Benefits and Jobs Act, which seeks to provide reasonable pension funding relief to employers facing a troubled financial market.
"Today employers...struggle to navigate in a severe recession. They face decreased cash flows, typed credit lines and they need to fund up the very significant book losses that they have on their investments from 2008...under a short 7-year time frame," stated Pomeroy during an afternoon press conference.
The Congressmen believe that, due to the economic crash last year, companies will either freeze their pension plans, continue to increase them or cut their workforce to make up for these losses. The two stated that they hope that this bill will give employees the security they need in knowing that they can continue working and that their retirement benefits carry on progressively.
"When a pension is frozen, workers in their fifties can expect a drop in benefits of about 35%, even when combined with a 401k coming along as a replacement...a huge setback for someone's retirement plans," said Pomeroy.
The bill proposes two alternatives for struggling employees: a nine-year program with payments of interest-only during the first two years or a fifteen year payment schedule that requires specific conditions.
"This bill...is a vehicle...to help Americans across the country as they struggle with [a tough economy]," said Tiberi.