Archive

401(k) Fees Bill to Include Pension Funding Relief

By Staff Report

Jun. 24, 2009

The House Education and Labor Committee plans to add modest funding relief for defined-benefit pension plans to a 401(k) plan fee disclosure bill scheduled for a vote Wednesday, June 24.


Provisions expected to be added would delay the effective date of regulations mandated under a 2006 law that toughened pension funding requirements.


Under current law, the rules can be effective as soon as July 1.


The amendments would delay the effective date until at least January 1, 2010.


In addition, employers would be given more flexibility in choosing an interest-rate methodology to value pension plan liabilities this year and next year.


On the other hand, more employers would be required to report plan actuarial and financial information to the Pension Benefit Guaranty Corp. Under current law, only plans that are less than 80 percent funded have to report this information to the PBGC.


The legislation would change that requirement to require a PBGC report if plan underfunding exceeded $50 million. Such a change is needed, according to a committee summary.


“Since large plans that are more than 80 percent funded can still be underfunded by hundreds of millions of dollars, the PBGC is not getting information on many underfunded plans,” according to the summary.


The core of the legislation, H.R. 1984, would require 401(k) and other defined-contribution plan sponsors to improve disclosure of fees and other financial information to plan participants.



Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


Workforce Management’s online news feed is now available via Twitter


What’s New at Workforce.com?

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog

Staffing Management

Managing employee time-off requests: A guide for business owners

Summary Vacation, sick time, PTO banks, and unpaid leave are only a few forms of employee time off — Mo...

workforce blog

Technology

Labor analytics: A how-to guide for company leadership

Make sure to start small, clean your data, use data from a variety of sources and use desired business ...

data analytics, employee data, HR Tech, people analytics, talent management

workforce blog

Technology

Why tattleware isn’t the solution for underperforming teams

If your employees can take their smartphones out of their pockets to circumvent your efforts, how can y...

employee monitoring, HR technology, tattleware