Stop H.R.2830 and S. 219

We The Undersigned urge to stop bills "H.R.2830 Pension Security and Transparency Act of 2005, introduced by U.S. House of Representative John A. Boehner (R_OH) and passed by the House of Representatives" and "S.219 National Employee Savings and Trust Equity Guarantee Act of 2005, introduced by Senator Chuck Grassley (R_IA) and approved by the Senate". Both bills have been referred to conference committees.

Bills H.R.2830 and S. 219 amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 to reform the pension funding rules. I urge you take immediate steps to stop the referral of each bill out of conference committee to the President for passage.

If signed into law these bills would replace the interest rate of 30-year treasury securities for purposes of funding lump sum benefits for retirees with a "modified yield curve interest rate calculation based upon corporate bonds" with a minimum interest rate calculation of no less that "5.5\%" based upon short term interest rates.

Moving this calculation to a short-term rate will have a significant impact on the lump sum benefits due an employee. Under the current interest rate environment the changed formula would result in lump sums being 30\% to 50\% LOWER for workers. This will result in fewer lump sum pension choices. In a monthly income option, pension payments cease at the employee's death unless the employee chooses to a spousal benefit. What would have been real wealth to pass onto children and heirs would remain the property of the employer.

With no real choice, employees will take a monthly income. A promise of income only based upon the ability of the employer to maintain those monthly payments. This would add further burden to the troubled Pension Benefit Guarantee Corporation (PBCG), which insures defined benefit plans. The PBGC is $30 billion under funded. Replacing the current calculation method of determining lump sum benefits with a higher rate is shrewd accounting on the part of the employer which will lessen the under funded nature of pensionswith what was formerly fully vested employee funds. In many instances it will allow employers to kill or freeze their pensions.

Many American workers chose to take jobs specifically based upon the promise of employer benefits and pensions. No doubt these bills will harmfully impact the lives of American workers. In a time when employers have overpaid executives with lavish perks and benefits, we seek that our leaders stop these untimely bills that take vested pension money from workers, which are mischaracterized as "employee windfalls". We ask that you take immediate measures to stop these bills in conference committee. We urge that you oppose H.R.2830 and S. 219.