House Votes to Protect Retirees

A bill to specifically prohibit companies that file for bankruptcy protection from canceling retirement benefits guaranteed by labor contracts was approved on a voice vote today by the House and sent to the Senate.

Sponsors said the bill was prompted by an attempt by LTV Corp. to stop payment on health and life insurance benefits to its nearly 70,000 retirees after the company filed for reorganization under Chapter 11 of the bankruptcy code last July 17. On July 30, a federal bankruptcy judge restored payment of the benefits for six months.