URPBPA LEGISLATIVE ALERT Please Forward to ALL your California Friends and Relatives Next Monday, August 15, at 1:00PM the California Assembly will be voting on AR-18. ALL Californians should call, email and fax our California State Assemblymen before Monday and ask that they vote in favor of AR-18. The AFA will be lobbying Sacramento Thursday, Friday and Monday and they have said that our calls, emails and faxes will help them considerably. This resolution if passed will call on the U.S. Congress to support federal legislation calling for a six-month moratorium on pension plan terminations as Proposed by Congressman Miller in H.R. 2327. H.R. 2327 has been stalled in committee and if AR-18 is passed it would show Congress that the State of California is in favor of passing pension relief legislation. As you recall, United Airlines lobbied heavily against this bill in Sacramento in July before the Assembly’s summer break. We need to show our support for this resolution and neutralize United’s lobbying efforts. You can look up your California Assembly member and his contact info at: http://www.leginfo.ca.gov/yourleg.html We had a tremendous response in July, please continue your effort now, we need to have this bill passed. Here is a copy of AR-18 if you have not seen it: BILL NUMBER: HR 18 - Relative to airline industry employees' retirement benefits. JUNE 30, 2005 INTRODUCED BY Assembly Member Mullin (Coauthors: Assembly Members Coto, Jerome Horton, Jones, Karnette, Leno, Levine, Torrico, and Yee) WHEREAS, United Airlines has used the bankruptcy court to default on its pension obligations, leaving thousands of United Airlines employees and retirees to face retirement with dramatically reduced pensions they worked decades to earn; and WHEREAS, It appears that by placing their pensions in a trust outside the scope of the bankruptcy proceedings, only certain executives at United Airlines had their pensions protected; and WHEREAS, United Airlines executives have yet to fulfill their promise to return $100 million a year in concessions to help the irline, but have nevertheless proceeded to make new and deeper cuts to their employees' financial security; and WHEREAS, As part of the bankruptcy proceedings, United Airlines will undergo restructuring based in large part upon wage and benefits concessions from the line workers of United Airlines; and WHEREAS, In the fall of 2004, when plans by United Airlines to dissolve its employees' pensions became clear, Representative George Miller, Representative Janice Schakowsky, and Senator Edward Kennedy were joined by 113 other Congressional Representatives and 22 Senators in urging the airline not to terminate the employees' retirement security; and WHEREAS, While United Airlines was negotiating with employee representatives regarding wage and benefits packages, it was simultaneously brokering an arrangement with the Pension Benefit Guaranty Corporation (PBGC) that would result in the termination of all employee pension plans; and WHEREAS, Despite a legislative request that it not seek to terminate its pension obligations, United Airlines continued to pursue such a termination through a request to the bankruptcy court to eliminate its pension obligations and have the PBGC, a government agency, assume the airline's pension obligations; and WHEREAS, The PBGC was created by the Employee Retirement Income Security Act of 1974 to encourage the continuation and maintenance of voluntary private pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum; and WHEREAS, Representatives Miller and Schakowsky sought leave to file an amicus brief with the bankruptcy court asking the judge to examine whether United Airlines' request to be relieved of its pension obligations was necessary in order to emerge from bankruptcy or whether the request was merely an attempt to evade its responsibilities under the collective bargaining agreement, but their motion was denied; and WHEREAS, United Airlines' employees already have agreed to over $3 billion in cuts to wages and benefits to assist the airline in emerging from bankruptcy; and WHEREAS, Federal legislation introduced by Representative Miller calls for a six-month moratorium during which companies currently in bankruptcy would be prohibited from shifting billion-dollar pension debts to the government, and this provision would be retroactive to encompass United Airlines employees; and WHEREAS, This legislation would provide Congress with additional time to formulate a solution to this pension crisis and prevent it from worsening and devastating the lives of tens of thousands of American workers; and WHEREAS, Federal legislation, also introduced by Representative Miller, would prohibit a company from making payments into the executive pension plan if the workers' pension plans are under-funded and would require companies that ask bankruptcy courts to erase their debt to rank-and-file pension plans to first reveal the status of their executive pension plans to ensure parity in how employees and executives are treated; now, therefore, be it Resolved by the Assembly of the State of California, That the Assembly respectfully requests the President and Congress of the United States to declare their support for, and to enact, federal legislation that would aid in the protection of hard-earned retirement benefits for all non-executive and non-management employees in the airline industry; and be it further Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the author for appropriate distribution.