Senate Finance Committee Passes Kerry Plan to Protect Pensions, Hold CEOs Accountable

Today, in a win to protect worker’s pension plans, the Senate Finance Committee has agreed to an amendment sponsored by John Kerry “to hold CEOs and corporate executives accountable for ensuring pension plans are solvent.”

The Kerry amendment strengthens the link between the funding of deferred executive compensation – benefits for executives that are often valued at millions of dollars a year after their retirements – to the funding of workers’ pension plans.

“It’s time Washington understood that a worker’s pension is just as important as a CEO’s golden parachute. The Pension Benefit Guaranty Corporation is there to protect workers when companies go bust, not so companies can break commitments to workers for extra cash-flow in the short term. We’ve seen what can happen when corporations cook the books, and we need to hold CEOs accountable for actually paying the pensions they’ve promised their employees,” said John Kerry.

Under the Kerry amendment, executives’ deferred compensation is restricted if workers’ pension plans do not have at least 80 percent of the money to pay out promised benefits.

Several companies’ pension programs have been unable to pay promised benefits, in which case the federal government’s Pension Benefit Guaranty Corporation has had to step in to pay the promised benefits. In June, the PBGC reported that the average underfunded plan is only 69 percent funded. To complicate matters, the PBGC is currently running a record deficit that tops $20 billion.

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6 Responses to Senate Finance Committee Passes Kerry Plan to Protect Pensions, Hold CEOs Accountable

  1. RON HODGKINS says:

    A LITTLE TO LATE FOR US UNITED EMPLOYEES, THIS SHOULD OF BEEN DONE A LONG TIME AGO TO PROTECT ARE PENSIONS. NOW THE WORKERS OF UNITED NEED TO PAY FOR THE STUPID MISTAKES OF UNITED AIRLINES MANAGEMENT. ARE CEO MR TILTON WILL STILL HAVE HIS GOLDEN PARACHUTE. I DOUBT THIS BILL WILL PROTECT US UNITED EMPLOYEES.

  2. Teresa says:

    This is so good. That it got passed in this atmosphere of insanity. What would we do without this man?

    Ron,

    This is a horror. An example of what could happen everywhere, and a lot of people understand your situation. I hope we can do something.

  3. Ron Hodgkins

    I’m so this if is too late to help United employees. We can’t continue to let this happen to others though. This is a start in the right direction.

  4. 0hio says:

    The following was taken from http://www.dailykos.com/story/2005/7/26/191334/181#11

    Problem
    Kerrycrat, there’s a small problem with, “To complicate matters, the PBGC is currently running a record deficit that tops $20 billion.”

    Most people reading that assume that the PBGC in the hole for 20 billion.
    The PBGC isn’t broke. We owe it a lot of money plus interest, of course.

    Also, “Under the Kerry amendment, executives’ deferred compensation is restricted if workers’ pension plans do not have at least 80 percent of the money to pay out promised benefits.”

    Consider this and hell, even run it by old Kerry if you will, is this to be construed as being harsh or proactive or what?

    Why “restricted”? Why 80 percent? Why not 100% and why not eliminated in lieu of “restricted”?

    Yes, I know as a democrat I’m suppose to genuflect and start kissing rear ends upon hearing Kerry’s being his truly wonderful self but for some strange reason this democrat isn’t in love with this less than competent millionaire politician.

    This Kerry thing is lame at best, destructive otherwise and promises “NOTHING”. Come on, wake up, this is simple, “Look at me!, Put my name in the news!, I’m the greatest hero of the middleclass!”

    Grandstanding dribble at best, Kerrycrat.

    After posting my comment, I re-read the diary and the comments and then posted this comment:

    Did you ever wonder how the republicans can be so delusional?

    They do not think for themselves, they listen to their leaders and say/do exactly what they are instructed to say/do.

    Read the diary.

    Think about what is being said.

    Form your own honest opinion.

    Do not follow along without thought ever entering your head.

    You might as well be a republican if you only do as you are told without ever using your brains.

  5. Ohio

    So what’s up with you? You don’t get much of a rise on Kerrycrat’s diary on KOS so you have now come here to pick your fight? \

    Good gracious, get a clue, it’s a friggin miracle this made it through the committee.

    FYI, you’ve come to the wrong blog to bash Kerry.

  6. Teresa says:

    Kerry happens to be one of the most competent politicians today and probably in recent history. It’s always a personal thing, and if you don’t like him, that’s your choice. But the people on this board respect the man as well as being very fond of him. Pay attention to the legislation he ‘s getting through for all of you non”millionaires”. It’s against all odds and phenomenal… a tribute to his great skill.