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Home > Publications > Public Employee Advocate > August/September 2006 >

Congress, labor derail Energy Department's attack on worker pensions, health benefits

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Intense pressure from members of Congress—aided by behind-the-scenes work of the AFT—prompted the Bush administration to back off a new policy that would penalize employers who offer traditional defined-benefit pensions and healthcare plans.

On June 19, Energy Secretary Samuel Bodman suspended implementation for one year of a policy he announced in April requiring government contractor pension plans and medical plans to meet so-called market-based benchmarks.

The policy, which specifically excluded employers offering defined-benefit pension plans from consideration for Energy Department contracts, attracted bipartisan opposition on Capitol Hill.

In a letter to Sen. Pete Domenici (R-N.M.), chair of the Senate Committee on Energy and Natural Resources, Bodman said the delay was “to continue to consult with statekholders.”

“This policy sets a very dangerous precedent that could be extended to other programs funded by the federal government, such as education, healthcare or federal grants to states,” said AFT lobbyist Bill Cunningham. “It represents an extreme anti-worker agenda and we must continue efforts to permanently ban this approach.”

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