Compliance November 29, 2012

Council Urges Legislative Action to Save DBs

The American Benefits Council has unveiled a six-point plan to address the ongoing, accelerated decline in defined benefit pension plans.
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The six points are: 

  • Funding stabilization must be made permanent. 
  • Pension accounting standards must be stabilized. 
  • Pension Benefit Guaranty Corporation (PBGC) insurance premiums need to be based on stable long-term assessments of need. 
  • Businesses should not be prevented by the PBGC from engaging in necessary and positive business transactions. 
  • Congress, the Treasury Department and the IRS must avoid developing nondiscrimination rules that encourage pension plan closures. 
  • Workable rules for hybrid pension plans are critical. 

The Council is urging lawmakers to consider these proposals as they fashion a plan to address the federal deficit, economic growth and tax and entitlement reform.  

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“These proposals would raise tens of billions of dollars of revenue, and help to create jobs by preventing unnecessary diversion of company assets and stimulating business expansion,” Council President James Klein said.  

The plan is here.

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