Pension Protection Act's Special Treatment for Airlines and Other Industries Merits a Veto

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Some policies are so bad that they overshadow the good features of legislation. If Congress insists on including special treatment for airlines and or other industries in the Pension Protection Act (H.R. 4), President George W. Bush should veto it. A veto would reduce the chance that companies could transfer the costs of their pension obligations to the taxpayer.

”A Dangerous Precedent”


Under H.R. 4, Delta and Northwest, which have frozen pension benefits, would be allowed up to 17 years to repay the underfunding of their pension plans, while American and Continental, which have not, would be allowed to take 10 years. These periods are significantly longer than the seven years other sponsors of defined benefit pension plans would have to eliminate their plans