Sec. 2. Findings
264 words·~1 min read·
/bill/114/s/3275/is/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Congress finds as follows: The Pension Benefit Guaranty Corporation considers normal retirement age to be 65, and applies a penalty, much like early withdrawal of Social Security benefit payments under title II of the Social Security Act ( 42 U.S.C. 401 et seq. ), to anyone receiving benefits before age 65. Prior to December 2007, pilots were required by law to retire at age 60. Notwithstanding this, and the apparent conflict between laws, the Pension Benefit Guaranty Corporation still reduced the benefits to all pilots forced to retire at age 60.
Another limit on the guarantee of the Pension Benefit Guaranty Corporation is the phase-in limit, which provides that the guarantee of a benefit increase is phased in over 5 years from the later of the adoption of, or effective date of, the increase under a pension plan. The Pension Benefit Guaranty Corporation terminated the United Airlines, Inc., pilots' pension plan several months earlier than the Air Line Pilots Association recommended, in order to minimize the Corporation's obligations to pilots covered by such a pension plan.
The average retired United Airlines, Inc., pilot is receiving less than 50 percent of vested benefits under the pilots' pension plan. Retired United Airlines, Inc., pilots met annual contribution limitations under the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq. ), by virtue of their required investment in their company-sponsored pension plan. Accordingly, the pilots were precluded from investing in any other retirement programs, such as IRAs or Roth IRAs and could not invest in a backup plan or safety net for themselves.
Connectionstraces to 2
Traces to 2 documents
Citation graph
cites case law
Cites 2Cited by 0 across 0 sources