Moving Ahead for Progress in the 21st Century

[eytonxav]

This article talks about a bill signed into law last summer that includes the pension stablization act. Read it over and decide if you believe this legislation is stabilizing pensions or is just more legislative slight of hand.

Seems to me we need a legislative simplification act so that future convoluted and voluminous bills are simplified and totally transparent in what they are actually accomplishing:

The Pension Destabilization Act | Bethany McLean

 

[pb4uski]

+1 IMO, pension contribution requirements were weak to begin with, so anything that weakens them further, even if just temporarily, is not prudent to me.

 

[MichaelB]

If I were employed and covered by a pension affected by this measure I would not be happy.

 

[pb4uski]

If I were employed and covered by a pension affected by this measure I would not be happy.

I think you could strike "employed and". I'm a participant in a DB plan and the notion of weaker funding requirements doesn't sit well with me but there isn't much I can do about it other than complain.

From the link, I had the impression that all DB plans would be affected by the act (but I read it quickly).

In my case the DB plan sponsor is pretty responsible so I'm not very concerned.

 

[MichaelB]

I think you could strike "employed and". I'm a participant in a DB plan and the notion of weaker funding requirements doesn't sit well with me but there isn't much I can do about it other than complain.

Good point.

The act changes the interest rate companies must use to calculate their funding requirements. By allowing an average of the past 25 years, the rate right now is the best it will get for the foreseeable future. Companies will benefit today but future contributions will be more costly if interest rates rise.

If overfunding results from this calculation, it may be easier to withdraw the excess, or part of it.

PBGC contributions increase. Ths is good.

Here's a brief I found with some detail https://www.buckconsultants.com/por...n-Funding-Stabilization-Finally-a-Reality.pdf