Compliance February 4, 2010

Lawmakers/Companies Make Further Plea for Pension Funding Relief

February 4, 2010 (PLANSPONSOR.com) - On a press conference call on February 4, an array of employers and retirement experts joined with Congressman Earl Pomeroy (D-North Dakota) to call for temporary pension funding relief.
Reported by

A central theme of the plea was how no relief could hinder the nation’s economic recovery.  “If left unaddressed, the issue of pension funding could throw a roadblock into our economic recovery,” said Pomeroy. “Pension funding relief would provide employers more cash on hand to save and create jobs and to inject into the economy, while giving workers enhanced job security and strengthened pension plans over the long-term.”

Last October, the American Benefit Council, represented in the call, issued a report contending that the accelerated pension funding mandates in the Pension Protection Act are costing the U.S. economy much-needed jobs (see ABC Contends Pension Funding Rules Cost U.S. Jobs).

Pomeroy, along with Representative Pat Tiberi (R-Ohio), has sponsored The Preserve Benefits and Jobs Act which proposed to expand pension funding relief provided in the Worker, Retiree and Employer Recovery Act (WRERA) in 2008 and the Department of the Treasury regulatory guidance for 2009 reducing employer contributions (see House Members Introduce Pension Funding Relief Measure).

An analysis by Mercer indicates pension plan sponsors face sharply higher contributions for 2010 (see DB Sponsors Face Significantly Higher Contributions in 2010).

More information about the efforts to secure funding relief is here.

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