DURBIN LEADS BIPARTISAN EFFORT TO PROTECT AMERICAN AIRLINES PENSION BENEFITS
[WASHINGTON, D.C.]- U.S. Senator Dick Durbin (D-IL) sent a bipartisan letter last night to the Chairmen and Ranking Members of the Committee on Health, Education, Labor and Pensions, and Committee on Finance, Senators Michael Enzi (R-WY), Chuck Grassley (R-IA), Edward Kennedy (D-MA), and Max Baucus (D-MT) urging them include a measure to protect benefits plans of American Airlines workers and retirees in the final version of a pending Senate pension reform package. In the letter, the Senators noted that the pension measure “was carefully crafted in such a way so as to not pick winners and losers between those airlines in bankruptcy that are freezing their defined benefit plans and those airlines that want to keep the defined benefit program for their workers.”
The pension provision in consideration will allow airlines that are keeping their defined benefit plans, such as American Airlines, to receive much of the same beneficial treatment as those airlines freezing their plans. American Airlines has a large scheduled payment in 2007 and this provision will give them the ability to spread the payments out over a longer period of time. Ultimately, the measure will help American Airlines stick with its defined benefit plans which offer more retirement security for its workers, as opposed to switching to a defined contribution plan such as a 401(k).
Illinois is home to 10,000 American Airlines and American Eagle employees and retirees. American has over 500 daily departures and serves over 120 destinations nonstop from its hub at Chicago O'Hare, including 22 international destinations. In addition, American's commuter network (American Eagle and American Connection) is a critical air service link for 8 downstate airports (Bloomington, Champaign, Decatur, Marion, Moline, Peoria Quincy, and Springfield).
Additional signatories to the letter include Senators Barack Obama (D-IL), Mel Martinez (R-FL), Bill Nelson (D-FL), Tom Coburn (R-OK), and Jim Inhofe (R-OK).
