Congressmen Introduce Pension Relief Bill

Impacts single- and multi-employer plans  Representatives Earl Pomeroy (D-N.D.) and Pat Tiberi (R-Ohio) Tuesday introduced H.R. 3936, the Preserve Benefits and Jobs Act, which that would provide single- and multi-employer pension plan funding relief to mitigate against the effects of investment losses in 2008.  Under the bill, multi-employer plans that meet a solvency test would be eligible for relief through two options that would allow employers to repay recent losses over a 30-year period, and employers would be unable to increase plan benefits for two years.  For plans in endangered or critical status, the bill would extend the rehabilitation and funding improvement periods.  The bill would also facilitate mergers of funds and allow the Pension Benefit Guarantee Corporation (PBGC) to provide assistance to lower long-term costs.  The bill would also update PBGC benefit guarantees.  AGC, along with the National Coordinating Council on Multiemployer Plans (NCCMP) has been advocating for legislation to provide relief to troubled defined benefit pension plans.  AGC will continue to work with NCCMP and Congress to enact pension funding relief legislation prior to the end of the year.  For a section by section summary of H.R. 3936, click here.