FOR IMMEDIATE RELEASE
Thursday, August 3, 2006

Isakson Praises Passage of Pension Reform Bill
Tens of Thousands of Georgians to Benefit

WASHINGTON – U.S. Senator Johnny Isakson (R-Ga.) today praised the Senate’s passage of a broad pension reform bill that includes measures to help protect tens of thousands of airline employees – including some 91,000 Delta Air Lines pensioners and family members in Georgia – from losing their pensions and to help protect American taxpayers from having to pay for those airline pensions.

“I am extremely pleased that the Senate has passed this bill, which will protect the pensions of thousands of Americans today and in the future make our pension laws 21st century laws in a 21st century economy,” Isakson said. “Failure of this Senate to pass this legislation before we left would have had disastrous consequences.”

Several large U.S. airlines – including Atlanta-based Delta – are struggling to meet required pension payments and are considering eliminating their pension plans altogether, meaning their employees would not reap the pensions for which they have worked so hard.

For the past 18 months, Isakson has been working with members of the Senate and the House of Representatives on how best to protect taxpayers and airline employee pensions. Isakson introduced bipartisan legislation in April 2005 to address the airline pension crisis, and his amendment to allow airlines to spread their pension plan funding over a more manageable schedule was part of a broader pension reform bill that passed the Senate in November 2005.

The Pension Protection Act of 2006, which passed the House last week, will allow airlines to spread their pension funding over an additional 17 years and under more stable, long-range terms. The legislation also will help protect American taxpayers by limiting the liability of the Pension Benefit Guaranty Corporation, the federal agency responsible for funding pensions when companies terminate their pension plans.

“It is to great credit of Delta Air Lines and Northwest Airlines that both of these companies in bankruptcy want to exit bankruptcy and ensure the pension benefits to their employees,” Isakson said. “This is not only noble but it's very important. In my state, 91,000 people's pensions and their future are determined and dependent upon this Senate acting.”  

The Senate passed the bill by a 93 to 5 vote. It now goes to President Bush for his signature.

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