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Cole Votes to Enhance Retirement Security Through Pension Funding Equity Act

October 8, 2003
Press Release

Washington, D.C. – Congressman Cole urged his colleagues on the House floor today to support legislation that would protect the retirement benefits of millions of American workers. The Pension Funding Equity Act (H.R. 3108) provides a short-term replacement for the current 30-year Treasury bond interest rate that is used by many employers to calculate the amount of money they must set aside in their employee pension plans. The Pension Funding Equity Act overwhelmingly passed in the House, 397-2.

"This is a bipartisan, short term solution that will protect the retirement benefits of millions of American workers while Congress proceeds with efforts to develop a permanent long-term solution to the persistent pension underfunding that is destroying traditional defined benefit plans," Congressman Cole said. "American working families and employers need both prompt action and a permanent solution."

Some defined benefit plans are in financial jeopardy because there is not an alternative to the 30-year interest rate that artificially inflates a plan's funding liabilities. After providing short-term funding relief to employers, Congress and the Administration will focus on finding a permanent solution to pension underfunding to give working Americans long-term security.