Kucinich on Underfunded Pension Plans
The following is a press release from October 29, 2003, by Kucinich's office in Congress
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Statement of Congressman Dennis J. Kucinich On
The National Crisis Of Underfunded Pension Plans
Congressman Dennis J. Kucinich (D-OH), Co-Chair of the Congressional Progressive Caucus, issued the following statement on a House Education and the Workforce Committee Hearing on Pension Plans:
"Today's hearing on the national crisis of underfunded pension plans further underscores the Administration's continued failure to protect the financial future of millions of hard working Americans.
"While 9 million Americans remain unemployed and three million private sector workers have lost jobs since 2001, millions more see their retirement futures in jeopardy as the underfunding of the nation's pension plans reaches almost $350 billion.
"As the Pension Benefit Guaranty Corporation (PBGC) -- the entity charged with insuring defined benefit pension plans -- is itself running an $8.8 billion deficit, we must call into question the Administration's failed economic policies that have contributed to this crisis. Massive tax cuts for the wealthy, the neglect of the manufacturing sector through unfair trade policies, and a proposal to change the way pension liabilities are calculated that may cut pension contributions in the first three years by $50 billion annually have not and will not help American families when they retire. The same is true for dangerous proposals to dismantle the Social Security System through privatization and allow companies to more easily convert their pensions to cash balance plans, which may cost older workers up to half of their expected pension plans.
"The creation of a single new job in the Commerce Department to focus on manufacturing is not an adequate response to this crisis. It is too little and too late. With an explosion of Americans retiring in the next 10 to 15 years, chronic pension underfunding, and exploding PBGC deficits, it is time for the Administration to seriously address the issue of pension underfunding, ensuring companies live up to commitments made to their workers in protecting their retirement futures."
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