As discussed in previous posts, last week Congressional conferees completed their reconciliation of the House and Senate versions of the Treasury/Transportation appropriations legislation which included controversial language pertaining to cash balance plans. According to the American Benefits Council, the final report includes the following language:
Within one hundred and eighty days of enactment, the Secretary of the Treasury shall present to the Congress a proposal for legislation which would provide transition relief for older and longer-service participants affected by conversions of their employers’ traditional pension plans to cash balance pension plans: Provided, that none of the funds made available in this Act may be used by the Secretary of the Treasury or his designee to issue any rule or regulation which implements the proposed amendments to Internal Revenue Service regulations set forth in REG-209500-86 and REG-164464-02, or any amendments reaching results similar to such proposed amendments.
Thus, according to this language, the Treasury Department would be precluded from promulgating regulations on age discrimination in defined benefit plans ? including hybrid plans ? during the 2004 fiscal year that ends September 30, 2004.
The U.S. Chamber of Commerce’s response to the proposed language is here. (Link via Benefitslink.com.)