“As Congress considers new actions to address the economic crisis—by rescuing financial institutions, bailing out the auto industry, and aiding homeowners who face foreclosure—we urge you to also address the equally important issue of erosion in retirement financial security,” said a letter sent to congressional leaders.
The organization urged Congress to block funding relief to plans that have frozen benefits and to make relief contingent on an employer’s promise to not freeze plans for five years after the period of funding relief.
The letter also called for extending the amortization period for funding
unfunded liabilities to 10 years from seven and reinstating a pre-Pension
Protection Act rule for companies facing bankruptcy to make the effective date
the day the company terminates the plan, not the date the employer files for
bankruptcy protection. The current system allows bankrupt plan providers to
“retroactively strip employees of benefits” when the bankruptcy filing date
precedes the termination of the plan by several years.
The center also
wants to ensure that deferred compensation for management and high-paid
employees be frozen along with any DB plan freezes.
—Timothy Inklebarger/Pensions & Investments
To comment, e-mail editors@workforce com.
—Crain's Benefits Outlook, November 2008
