For Immediate Release                                        Contact: Amanda Molk, 202-225-5256
July 25, 2002

Napolitano Supports Pension Protections for Older Workers

Congresswoman Napolitano (D-Norwalk) yesterday joined with her colleagues to secure passage of an amendment to the Treasury-Postal appropriations bill that protects workers from discriminatory pension cuts when companies switch from a traditional pension plan to a cash balance plan.

Explaining a current problem with pension plans, Napolitano stated, “Hundreds of American companies, including IBM, CBS, AT&T, Enron, and WorldCom, switched their pensions from a traditional plan to a cash balance plan.  These conversions decrease older workers’ pension values by 20-50%.  The Equal Employment Opportunity Commission has received approximately 800 age discrimination complaints from workers at companies that have moved to a cash balance plan.” 

Yesterday’s amendment, offered by Rep. Bernie Sanders (I-Vermont) requires the IRS to enforce a policy known as Notice 96-8, which mandates that companies switching from a traditional pension plan to a cash balance plan to do so in a way that would not slash workers pensions.

“So many seniors depend upon their pensions.  It is unconscionable to allow companies to rob older workers of the pension funds they have earned as they approach their retirement.  This amendment takes an important step to protect workers pensions and I am happy to support it,” stated the Congresswoman.

The Treasury-Postal appropriations bill which includes this amendment passed the House and must now be considered by the Senate.  While Congresswoman Napolitano supported the amendment regarding pension protections, she opposed the overall bill for other reasons.

Representative Grace F. Napolitano, 38th District of California
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