Facing cuts in benefits, growing numbers of retirees are determined to make themselves heard and to extract some remedy from Congress. Like the movement to curtail perceived abuses in cash balance conversions, the retiree health benefits cause is building grassroots organizations and establishing contacts with politicians and bureaucrats in Washington. It is too early to tell how successful they will be in the new Congress, says Representative John Tierney of Massachusetts, one of the sponsors of the Emergency Retiree Health Benefits Act. And, ultimately, any legislation of this kind would have to find key support from a Republican in a position to advance it, such as the new chairman of the House Education and Workforce Committee. Republicans also have yet to show much interest in this issue.
Health care is already a potent political issue, as was seen in the presidential campaign.
With health-care costs rising, it is likely to remain an issue. Retirement issues, too, have become more and more important for members of Congress, both Democrat and Republican, as they take a look at demographics and the looming retirement of the very large baby boom generation that begins in 2010 and continues for the next two decades. At the very least, this year, hearings on retiree health are likely in the 107th Congress, says Earl Pomeroy, a North Dakota Democrat who has become a leader on retirement issues. Employers want a funding mechanism that is not so restrictive that it is of little or no use. Retirees and labor unions want a guarantee that retiree benefits can not be reduced or terminated.