Washington – Disputes over airline pension relief have been settled among key lawmakers, clearing the way for the Senate to vote as early as today on a sweeping overhaul of the private pension system.
“We developed momentum and all of sudden there were new passengers on board,” said Sen. Johnny Isakson, R-Ga., the primary sponsor of the airline-relief amendment. “We feel very optimistic.”
Isakson said he met with Sen. John Cornyn, R-Texas, on Wednesday to iron out differences, in coordination with Senate Finance Committee chairman Charles Grassley, R-Iowa.
Grassley, whose committee shares jurisdiction over the legislation, confirmed Wednesday that he and his colleagues have agreed to extend pension-payment “leniency” to Continental and American, which are not in bankruptcy.
Both Texas-based airlines said they were satisfied.
“We felt as though the draft amendment was unfair in how it treated us,” Continental spokesman Dave Messing said. “The revisions put us on a more level playing field.”
American spokeswoman Lisa Bailey said, “We’re very happy with what’s been proposed. We’d love to see it get done this week.”
However, some issues unrelated to airlines could yet delay action until after a week-long Columbus Day recess.
For example, on Wednesday, Sen. Mike DeWine, R-Ohio, was reportedly seeking changes in a provision that requires companies with credit ratings below investment grade to pay more in fees for pension insurance.
Isakson said that when the debate does begin, he will try to attach an amendment extending the pension-payment period to 20 years. He said he has bipartisan support and is optimistic about the measure’s passage.
But opposition might be tough because many lawmakers fear airline defaults could endanger the Pension Benefits Guaranty Corp., the federal agency that insures private pension plans covering 44 million Americans.
The agency’s liabilities soared to more than $23 billion last year.
