Yesterday, the House approved legislation (H.R. 3521) that, among other things, provides pension-fund relief for airlines and other companies struggling to meet pension obligations for their employees. Articles on the legislation:
- Wall Street Journal: “House Approves Aid Bill For Underfunded Pensions: White House Objects to Package; Tax-Break Extensions Also Pass”
- Wall Street Journal: “House Passes Tax, Pension Package”
- Washington Post: “House Passes Bill Easing Airline Pension Rules”
You can access the House legislation here (via Benefitslink.com) and here as well.
The American Benefits Council website also reports on the bill:
Specifically, for plan years beginning in 2004 and 2005, the proposal replaces the 30 year rate with a range of rates within 90-100% of the four year weighted average of rates on amounts invested conservatively in long-term investment grade corporate bonds as determined by the Secretary of the Treasury. The rate would be applicable for funding and Pension Benefit Guaranty Corporation premiums. It would not be applicable to lump sums calculations. The extenders bill also includes limited relief on the deficit reduction contribution. The proposal would permit a waiver of a portion of the deficit reduction contribution for the next two years and would be applicable to airlines only.
In the Senate, the Finance Committee and the Health Education, Labor and Pensions (HELP) Committee are continuing to work towards a compromise package relating to pension funding.
A related story from the New York Times: “A Plan to Postpone Pension Financing at United.”