Monday, August 01, 2005
Senate Bill Could Lead to Weaker Public Pension Plans
The Senate Finance Committee approved legislation this week to overhaul federal pension laws. The bill, National Employee Savings and Trust Equity Guarantee Act of 2005 (JCX-57-05), could destabilize private defined benefit pension plans and ultimately cause state legislatures to weaken public pensions that cover teachers and education support professionals.
The next steps are uncertain, including when the bill will go to the floor and whether it will be combined with the work of other committees. In the meantime, NEA, along with its cyberlobbyists, will continue to press for legislation that does not penalize employees or responsible employers. Of particular concern to teachers, education support professionals and other public sector employees is a growing trend to erode the foundation of public pensions by making it more difficult for employers to provide such plans. Among those specifically impacted by the Senate legislation are NEA's and its state affiliates' employees, who participate in private defined benefit plans.
from NEA
