Talking Points for 2012- NCRO heads to Washington DC
DC 2012 Talking Points - Bankruptcy
DC 2012 Talking Points - Drug Costs
DC 2012 Talking Points - Mergers & Acquisitions
DC 2012 Talking Points - Maintenance of Cost Protection.
DC 2012 Talking Points - Medicare
DC 2012 Talking Points - Pension Asset Protection
DC 2012 Talking Points - PBGC Reform
DC 2012 Talking Points - Social Security
NRLN Agenda/Initiatives
NRLN Legislative Agenda 2012 initiatives
NRLN Legislative Agenda
NRLN Fall of 2010 Fly-in Report
The NRLN organized a Fall Fly-in as a grass root effort to garner support for its legislative agenda:
•
PENSION ASSET PROTECTION (PAP): The
NRLN advocates legislation that stops corporations from
taking pension assets from defined pension plan trusts
to pay for lump sum severance and early retirement
incentives. The NRLN advocates that pension funds not be
used to pay executive non-qualified pensions and other
deferred compensation. The NRLN advocates that pension
plan assets should not be transferred to or be taken
over by third party financial or other institutions.
•
PBGC REFORM: The
NRLN advocates that the Pension Benefits Guaranty
Corporation must be regulated to ensure equitable
calculations of benefit payments earned by retirees.
•
BANKRUPTCY REFORM: The
NRLN advocates that bankruptcy reform is needed to place
retirees' pensions and benefits on a list of obligations
that companies can't shed. Retirees often lose pension,
health care, and other benefits and, unlike secured
creditors, rarely have the ability to recover losses.
•
PROTECTION AND ENHANCEMENT OF RETIREE HEALTH CARE
BENEFITS:MAINTENANCE OF COST PAYMENT: The
NRLN advocates a Maintenance of Cost† Payment (MCP)
proposal that would establish a fixed monthly payment to
retirees equivalent to the value an employer provided
prior to the reduction or cancellation of retirement
health care, prescription drugs, life insurance,
long-term care or other benefits. Companies would be
entitled to tax credits as an offset to MCP payments.
•
MEDICARE BUY-IN FOR AGES 55-64: The
NRLN advocates that adults age 55 to 64 be allowed to
buy Medicare coverage at a cost that does not burden the
Medicare system. Access could be limited to individuals
without access to an employer-sponsored or other group
health plan that is actuarially equivalent or superior
to Medicare.
•
INCLUSION OF CATASTROPHIC COVERAGE IN MEDICARE: The
NRLN advocates that Congress should extend protection
against catastrophic medical costs to the Medicare
population by setting a reasonable maximum limit on
out-of-pocket costs.
•
PROTECT RETIREES IN MERGERS & ACQUISITIONS: The
NRLN advocates law that clarifies what a parent foreign
owner's pension plan obligations are to abide by ERISA
should its U.S. subsidiary be spun off or dissolved.
Clarification must include situations where foreign
corporations that own U.S. subsidiaries are also
acquired by a third party, foreign-owned corporation.
•
REDUCE THE COST OF PRESCRIPTION DRUGS:
The NRLN advocates the reduction of prescription drug
costs for Americans through passage of legislation that:
(1) Enables re-importation and importation of safe
prescription drugs approved by the FDA; (2) Enables
Medicare to develop formularies and take competitive
bids for prescription drugs; (3) Staffs and funds the
FDA to reduce the generic drug approval backlog; (4)
Prevents drug companies from colluding to control
pricing or subvert free market practices.
•
PROTECT MEDICARE: The
NRLN advocates that Congress must guard against
reductions in Medicare expenditures that negatively
impact the care that retirees receive from doctors,
hospitals and other health care services.
•
PROTECT SOCIAL SECURITY:†
The NRLN advocates legislation to make Social Security
financially sound without reducing current and future
retiree benefits.
51 participants, representing 10 National Retiree
Legislative Network member associations met to lobby for
retirees’ rights on Capitol Hill.
NCRO had eight Directors and Officers in
attendance including Jay Kuhnie, Chuck Austin, Rich
Brown, Mike Cipponeri, Chris Dyrda, Stan Hurst, John
Glotzback, and Dave Slates.
Other organizations in attendance included retirees from
GM, Delta Pilots, Lucent, Kodak, Detroit Edison, John
Deere and Delta Flight attendants.
The NCRO delegation met with
Congressmen Peters, Congressman Roger Miller, and
Congressman Sander Levin, House Ways and Means, as well
as legislative assistants from the offices of Chairman
George Miller, House Labor and Education Committee,
Senator Sheldon Whitehouse with Judiciary and Oversight
Committee, and Congressman Bart Stupak.
The meeting with Congressman
Stupaks’ aides was non productive since he is a lame
duck Congressman.
At the office of Congressman Levin
much of the discussion centered on getting a rider in
some bill ensuring Pension Asset Protection. Congressman
Levin agreed to work with the NRLN to get Organized
Labor to accept such a rider into law.
Labor does not want to give up the ability to
bargain for buy outs from pension assets and has
historically opposed such legislation. Congressman Levin
didn’t think that there was a chance of getting PAP into
a bill until the next Congress convenes.
Many of the Congressmen are returning home early
to campaign.
We talked to Congressman Peters
largely about Pension Asset Protection and PBGC reform.
He was told about the PBGC being more interested
in protecting its assets that distributing pensions.
It has become a self-sustaining bureaucracy. We
asked him to contact his colleagues, especially
Congressman Levin, to emphasize the importance of these
Issues. We
reminded him that in seeking reelection this fall many
of his voters in the 9th district are
salaried retirees over 50 years old.
He agreed to talk to his fellow legislators.
Joshua Karetny counsel to Senator
Sheldon Whitehouse, Senate Judiciary Committee was told
of the injustice of retirees being excluded from
bankruptcy negotiations.
We asked for legislation to require mandatory
1114 committee representation to allow the hiring of
Counsel at the court’s expense and the need to
participate in PBGC negotiations.
We asked for a Senate hearing, which we said we
would support with data, testimonials and legal counsel.
Meredith Regine, Labor Associate
for the Committee on Education and Labor, was told of
the need for Pension Asset Protection and PBGC rules
reform such as:
·
Require the PBGC to stop
using an unrealistic low interest rate assumption for
the investment of assets and to require the PBGC to use
the same bond yield assumptions as plan sponsors for
non-guaranteed benefits.
·
To revise the 5 year look
back rules
·
To revise the three year
eligibility rules and provide for a more gradual phase
in
·
To give the PBGC
authority to lien assets of foreign based companies
It was stated by the Congressional
Associates that a hearing on this subject is important
and likely to occur in the near future.
Several members of NCRO, as well as
retirees form other organizations attended a meeting at
the PBGC’s offices.
There the PBGC presented its methods and
processes.
Our attendees talked about the need for rules reform.
In attendance from the PBGC was the news head of
the agency,
Joshua Gotbaum.
The PBGC expressed no intent to change its
processes and stated that the laws have to change.
Some of the other meetings included a kick-off and
dinner where retirees from many organizations got to
share ideas and experiences about their circumstances
and outcomes.
Ellen Schultz from the Wall Street Journal
attended the Fly-in events and expressed a lot of
interest in our mission and was interested in our
accomplishments.
Jay Kuhnie and Chris Dyrda met directly with Bill
Kadereit to discuss the need for the NRLN to improve the
process for producing White Papers and for the need for
a more focused grass root effort.
Summary and Conclusions:
Attendees from the NCRO observed that this year’s event
was less well attended that last year.
There could have been more coordination amongst
organizations when visiting the Hill.
The NRLN needs to take this on for future events.
The ability to make progress with legislation is slow.
We need to continue to maintain a presence and
muster much more grass root support.
We will have succeeded if:
·
Congressional hearings
are scheduled when Congress reconvenes
·
The PBGC rule making
discretionary rule making is affected
·
Progress is made to
eliminate Bargaining Unit opposition to Pension Asset
Protection
Follow up and persistence is
required.
