Wednesday, November 12, 2008
Employers want Congress to back off on Pension Protection Act of 2006
Major employers will lobby the lame duck Congress session coming up after Thanksgiving to roll back some of the provisions of the Pension Protection Act of 2006 (Department of Labor link, which would require employers to strengthen reserves over the next several years with existing earnings or cash. Companies say that such a requirement could lead to job losses or layoffs of regular employees. Companies might have to terminate current defined benefit pension plans or even 401K matching. On the other hand, the law probably makes current pensioners safer.
AP Business reporter Stephen Manning has a story here. The story appears on p A2 of the Washington Post Nov. 12.
Update: Nov. 20, 2008
The New York Times has a story by Mary Williams Walsh, "Hit by Losses: Pension Funds Criticize Rules", or (online) "After Losses, Pensions Ask for a Change," link here. Pensions have lost over $250 billion this year.