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Ryan Votes for Pension
Bill to Protect Workers' Pensions
Ryan Worked on Behalf of UAW and Auto Manufacturers to
Reach Agreement that Improves Security of Auto Workers' and Retirees' Pensions
Wisconsin's
First District Congressman Paul Ryan today voted for H.R. 4, the Pension
Protection Act of 2006, which contains an agreement he fought for to ensure
that auto sector employers such as GM will remain able to fund workers' pension
plans. Over the past six months, Ryan worked closely with the United Auto
Workers (UAW), General Motors (GM), the House Ways and Means Committee, and
House and Senate pension bill conferees to reach this agreement on pension bill
details. The UAW has announced its support for this pension legislation, which
the House passed 279-131.
H.R. 4 incorporates the agreements reached during a House-Senate conference to
resolve differences on earlier versions of legislation to strengthen the funding
of pension plans, and the Senate is expected to pass it.
Since the House passed its version of pension legislation last December,
including provisions that Congressman Ryan helped negotiate to protect auto
workers' pension benefits, Ryan has been working to make sure that the final
compromise version of the pension bill continues to protect workers' and
retirees' pensions and enables employers to remain competitive.
"By working closely with auto companies and the UAW, we were able to reach
a compromise that brings more security to the pensions of the tens of thousands
of auto workers and retirees in Southeastern Wisconsin," Ryan said.
"As Congress moved ahead to update these laws, we needed to protect
workers' pension benefits and ensure that local employers such as GM and
Chrysler can stay competitive, and this bill does that."
As a result of the agreement that Ryan helped secure, this pension legislation:
Preserves the agreement reached last December regarding the credit balances of
employers such as GM who have been contributing more than the minimum amount
necessary to meet their pension funding obligations;
Protects workers' pension benefits, while seeing to it that employers work to
maintain or restore the health of their employees' pension funds when a pension
fund is determined to be underfunded and at risk of default.
More broadly, the Pension Protection Act of 2006 reforms outdated pension
rules and takes steps to ensure that pension plans are well funded and help
protect taxpayers from a costly bailout of the Pension Benefit Guaranty
Corporation (PBGC).
Among its provisions, the Pension Protection Act of 2006:
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Strengthens
funding rules to ensure employers properly and adequately fund their worker
pension plans.
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Allows
single-employer pension plans to continue to offer plant shutdown benefits,
if they are above 60% funded.
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Enhances
retirement savings by making permanent the IRA and pension provisions
enacted under the 2001 tax relief law, which increased annual contribution
limits for IRAs and qualified pension plans and made other improvements in
pensions and retirements savings through enhanced vesting, portability and
reduced regulatory burdens. Under current law, these reforms are scheduled
to expire in 2010.
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Requires
companies to provide more information to workers about the status of their
pension plans.
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Contains
a charitable giving incentives package to encourage more charitable giving
by individuals and businesses.
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Permanently
extends the rules for Section 529 qualified tuition programs (college
savings plans.)
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Contact: Kate
Matus (202) 226-7326
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