Reply #68: GOPpiggies - U.S. Senate OKs 20-year pension break for airlines

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-16T172500Z_01_WAT004394_RTRIDST_0_CONGRESS-PENSIONS-AIRLINES-URGENT.XML

WASHINGTON, Nov 16 (Reuters) - The U.S. Senate on Wednesday backed an amendment to pension legislation that would give airlines 20 years to fix funding shortfalls in the pension plans they sponsor.

The amendment, by Sen. Johnny Isakson, a Georgia Republican, was passed on a voice vote. It allows struggling airlines with underfunded pension plans to qualify for the relief without freezing their plans, so long as they immediately fund any future pension benefit promises.

The Senate was expected to approve the underlying legislation later on Wednesday. It would require companies sponsoring pensions to set aside more money for retirees over time and pay higher premiums to the deficit-ridden agency that insures the plans, the Pension Benefit Guaranty Corp. (PBGC).