Senate Thumbs Up for Pension Reform
Reuters reports that the Senate, with a vote of 93 to 5, has just passed a pension reform bill that now goes to President Bush. The Washington Post reminds readers that the U.S. House of Representatives approved this bill last week with a 279 to 131 vote.
Major elements of the Pension Protection Act of 2006 are listed below.
1. Sponsors will have to fully fund defined benefit plans within a seven year period, starting in 2008.
2. Airline companies get more time to satisfy obligations.
3. Hedge funds will find it easier to manage ERISA money before being subject to fiduciary requirements.
4. Financially weak plans will have to contribute additional amounts of cash.
5. Providing 401(k) plan investment advice by financial companies will be relaxed.
Comments and analysis will follow in the next few days.
Major elements of the Pension Protection Act of 2006 are listed below.
1. Sponsors will have to fully fund defined benefit plans within a seven year period, starting in 2008.
2. Airline companies get more time to satisfy obligations.
3. Hedge funds will find it easier to manage ERISA money before being subject to fiduciary requirements.
4. Financially weak plans will have to contribute additional amounts of cash.
5. Providing 401(k) plan investment advice by financial companies will be relaxed.
Comments and analysis will follow in the next few days.
