U.S. Chamber Denounces Kennedy Pension Bill

WASHINGTON, D.C. — The United States Chamber of Commerce today voiced its strong opposition to sweeping pension-plan reform legislation sponsored by Sen. Edward Kennedy (D-MA), saying it would hurt U.S. workers.

"Although what happened at Enron was indefensible, nothing in the record justifies this sweeping legislation, which moved through committee without even one legislative hearing," said Randel Johnson, Chamber vice president for labor policy. "Ironically, this bill would punish the employees it purports to protect by discouraging employers from offering this valuable, sought-after benefit."

The Protecting America's Pension Act (S. 1992), approved by the Senate Health, Education, Labor and Pensions Committee today, constitutes a radical revision of the nation's pension laws under the Employee Retirement Income Security Act (ERISA), according to the Chamber. The measure was approved on a party-line vote.

"While diversification and blackout periods are legitimate issues for review, the Kennedy bill takes those areas of debate and uses them to bootstrap massive changes to pension law," said Johnson. "It's telling that not a single Republican on the H.E.L.P. committee voted in favor of this bill."

Areas of major concern for the Chamber include expanded liability, limitations on arbitration, joint trusteeships on single employer plans — long on organized labor's wish list — and severe restrictions on an employer's ability to offer company stock as a match in 401(k) plans.

A co-chair of the Coalition on Employee Retirement Benefits, the Chamber on March 19 sent a letter to Senate H.E.L.P. committee members outlining its concerns over the bill and urging them to reject the fatally flawed legislation.

Employers voluntarily provide retirement benefits to 90 million American workers — over and above their Social Security contributions. Defined-contribution plans, such as 401(k)s, have become the mainstay of the private retirement system. More than 42 million workers participate in 401(k) plans, holding nearly $2 trillion in assets, accumulating wealth that supplements company pensions and Social Security.

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector and region.

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