Big 3 fear pension reforms

The Detriot News reports:

In a move with great consequences for Michigan workers and retirees, Congress is moving toward legislation that will put even more financial pressure on beleaguered automakers and auto parts manufacturers to protect retiree pensions.

The pension overhaul legislation would force companies to fully fund their pension systems. But while most companies would be allowed several years to catch up, a provision in the Senate bill could have dire consequences for employers with poor debt ratings. Struggling companies such as General Motors Corp., Ford Motor Co., Delphi Corp. and Northwest Airlines would be required to pay their outstanding pension liabilities in a shorter time frame.

"Essentially, you're kicking a company while it's down, even though its pension plan might be sound," said Darren McKinney, spokesman for the National Association of Manufacturers in Washington. "If the goal is to continue these kinds of pension plans, the legislation should not be making it more onerous to offer the plans."

When are to going to apply the same standards to "public pensions"?