Manchin Explains Why Congress Needs To Pass The Slap Act
Washington, D.C. – One week after another major corporate bankruptcy, U.S Senator Joe Manchin (D-WV) today took to the Senate Floor to explain why Congress needs to pass the Stop Looting American Pensions (SLAP) Act, legislation that would protect the pensions of American workers. For far too long, American greed has influenced Wall Street firms that have taken over companies, cut wages and paid executives large bonuses while walking away from their pension obligations for their employees and retirees.
Senator Manchin said in part: “Mr. President, American workers, businesses and our economy are the envy of the world. Throughout the history of our country, our citizens believed that through hard work and dedication they could achieve the American Dream. Unfortunately, that is not always the case. For millions of Americans, they worked hard, played by the rules and trusted the companies they worked for to keep their end of the bargain. That bargain is their pension. These pensions are modest and what millions of Americans plan to use when they retire in the twilight of their life. But for 1.5 million Americans, that security has been pulled out from under them. Why after working hard for years and forgoing a portion of each paycheck for their pension, they have either lost or gotten their pension cut in half? The answer is the current state of bankruptcy laws.”
To watch his full remarks, click here.
The SLAP Act changes current bankruptcy laws to increase the priority of workers during bankruptcy proceedings. Simply put – it moves American workers to the front of the line. It also mandates that companies must continue to make minimum funding contributions towards pension plans during bankruptcy proceedings, increases look back periods from two years to six years, prohibits sales of all of the debtor’s assets within 60 days of filing bankruptcy, and expands restrictions on executive pay during bankruptcy. The SLAP Act will:
· Increase bankruptcy priority for wages
· Mandate companies continue making minimum funding contributions towards pension plan during bankruptcy
· Expand restrictions on executive pay during bankruptcy
· Broaden ability to search for prior improper transactions
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