http://www.nytimes.com/2008/12/12/business/12pension.html?ref=businessCompanies whose pension funds suffered big losses this year will not have to replenish the money quickly under a relief measure that flew through the Senate Thursday and will next go to the president for his signature.
Senator Charles E. Grassley called the relief a stop-gap measure.
Because of strong market performance, big contributions made in the past, and a two-year phase-in of tougher financing rules passed in 2006, many companies have not had to pump much money into their pension funds in the last few years. But they suddenly faced the prospect of having to come up with a lot of cash because of this year’s financial crisis.
The bill also offers relief to people over the age of 70 who would normally be required to withdraw money from their 401(k) plans and individual retirement accounts or face big penalties. If signed into law, the measure will suspend the minimum-distribution rules in 2009, so that people do not have to pull money out at a time when many investments have lost value.
Too bad the RMD rule change won't come into effect in 2008, when it is most needed. Typical washington - fixing yesterday's problem tomorrow.