Kennedy on DOE's Decision to Withdraw Harmful Pensions Policy

This spring, the Department of Energy issued Notice 351.1, which would have forced contractors to abandon secure defined benefit pensions and drastically cut healthcare. The policy received widespread criticism from business, labor, and retirement groups. Senator Kennedy and other Democrats introduced legislation to force the Department of Energy to withdraw this harmful notice (S. 2794, the Department of Energy Contractor Employee Equitable Treatment Act of 2006) and he was prepared to offer an amendment this week to the Defense Authorization Act to require DOE to suspend its notice for one year. Yesterday, responding to increasing pressure, DOE voluntarily withdrew the notice for one year, to further study and listen to stakeholder comment on this issue.

Senator Kennedy stated: “I am pleased that Secretary Bodman has retracted this harmful policy that would have stripped workers of the secure pensions they deserve and undercut good healthcare. The Administration should be working to strengthen pensions for all Americans rather than moving in the wrong direction with policies that unfairly penalize working men and women.”

–Tristan Takos