Congress Proposes Pension Funding Relief for Employers

A new bill, the Preserve Benefits and Job Act, that would extend the time allotted plan sponsors to fund defined-benefit retirement plans was recently introduced in the United States House of Representatives. The proposed legislation would provide employers with pension funding relief by allowing them to spread out required contributions to defined benefit pension plans plans over nine years, instead of the current seven. Further, Congress would allow employers up to 15 years to fully fund their defined benefit plans if they promised not to freeze the benefits. The proposed legislation also grants the Pension Benefit Guaranty Corporation more leeway in assisting defined benefit plans that are in endangered and critical status regarding their funding levels.