FOR IMMEDIATE RELEASE
Thursday, August 17, 2006

Isakson Praises Signing of Law to Protect Pensions of American Workers

WASHINGTON – U.S. Senator Johnny Isakson (R-Ga.) today praised the signing by President Bush of landmark pension reform legislation. The new law 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 this bill is now law. This legislation will protect the pensions of thousands of Americans and has created 21st century pension laws for a 21st century economy,” Isakson said.

Several large U.S. airlines – including Atlanta-based Delta – are struggling to meet required pension payments and were 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 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 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 were determined and dependent upon this bill becoming law.”  

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