Benefits

Obama Backs Pension Funding Relief With Conditions

By Staff Report

Apr. 16, 2010

The Obama administration has endorsed legislative efforts to provide additional funding relief to defined-benefit plan sponsors but only if the relief is targeted to companies that really need it, according to a letter to key lawmakers from Labor Secretary Hilda Solis.


The administration also wants to ensure that funding relief is not available to companies in severe financial distress that are unlikely to meet future plan funding obligations, according to the letter.


Copies of the letter were sent to House Education and Labor Committee Chairman George Miller, D-California, and House Ways and Means Committee Chairman Sander Levin, D-Michigan.


Also according to the letter, the Obama administration wants to ensure that the cash saved by companies through funding relief is put into job creation and preservation—and that cash not needed for those purposes is put into the pension funds before being distributed to shareholders or plowed into pay raises for company executives.


“Finally, the legislation should not provide funding relief to companies that are unlikely to be able to meet their pension obligations in the future because of severe financial distress, such as firms in bankruptcy or those that have failed to make past required pension contributions,” Solis wrote in her letter. “Allowing these companies to reduce their pension contributions creates an unacceptable risk of loss to workers, retirees and the PBGC.”  


Filed by Doug Halonen of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


 


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

About Workforce.com

blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog

Benefits

EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog

Benefits

Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness

workforce blog

Benefits

We are in the midst of a public mental health crisis; how employers can help

Do not ignore these issues or your employees who are living with them. Mental health illnesses are no d...

ADA, benefits, Coronavirus, FMLA, mental health, paid time off