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- Aug 20, 2002
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Dow Jones Business News
Chances for Airline Pension Relief Dimming in Congress
Friday December 5, 3:30 pm ET
By John Godfrey, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- It was looking less likely Friday that Congress will pass pension funding relief being sought by U.S. airlines before adjourning for the year, House aides said Friday.
Airlines have been asking for relief from accelerated pension funding contributions required of substantially underfunded pension plans. These accelerated pension payments are called deficit reduction contributions.
Airlines had hoped to tie DRC relief to broader legislation replacing the 30- year Treasury bond in pension calculations. But opposition from key senators, coupled with the dwindling time in which to work out a compromise make chances for passing the DRC proposal dimmer.
Moving a compromise version of the bill would require the House to act first, and the pension bill isn't on its schedule.
One key stumbling block is Sen. Pete Fitzgerald, R-Ill., who announced Friday he will object to any effort to bring to the Senate floor legislation providing the DRC relief being sought by the airlines.
"I take a very dim view of this," Fitzgerald said.
Fitzgerald said it is inappropriate to give pension funding relief to weak businesses with already-underfunded pension plans.
Fitzgerald said it would be akin to the "debacle" of giving regulatory relief to the savings and loan industry in the 1980s.
Chances for Airline Pension Relief Dimming in Congress
Friday December 5, 3:30 pm ET
By John Godfrey, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- It was looking less likely Friday that Congress will pass pension funding relief being sought by U.S. airlines before adjourning for the year, House aides said Friday.
Airlines have been asking for relief from accelerated pension funding contributions required of substantially underfunded pension plans. These accelerated pension payments are called deficit reduction contributions.
Airlines had hoped to tie DRC relief to broader legislation replacing the 30- year Treasury bond in pension calculations. But opposition from key senators, coupled with the dwindling time in which to work out a compromise make chances for passing the DRC proposal dimmer.
Moving a compromise version of the bill would require the House to act first, and the pension bill isn't on its schedule.
One key stumbling block is Sen. Pete Fitzgerald, R-Ill., who announced Friday he will object to any effort to bring to the Senate floor legislation providing the DRC relief being sought by the airlines.
"I take a very dim view of this," Fitzgerald said.
Fitzgerald said it is inappropriate to give pension funding relief to weak businesses with already-underfunded pension plans.
Fitzgerald said it would be akin to the "debacle" of giving regulatory relief to the savings and loan industry in the 1980s.
