On December 19, the House of Representatives passed a budget reconciliation bill (Deficit Reduction Act, H.R. 4241/S. 1932) that includes provisions increasing Pension Benefit Guaranty Corporation (PBGC) premiums for sponsors of defined benefit pension plans. The Senate previously approved the legislation. The House needs to vote a second time on the bill in order for it to be sent to the President. It is not clear whether a vote on the bill will be held before the House reconvenes next January

 

On December 15 the House of Representatives passed a broadly sweeping pension reform bill. The bill contains provisions addressing such topics as defined benefit plan funding, automatic enrollment for defined contribution plans, the legal status of hybrid pension plans, and carry forward up to $500 of unused flexible spending account balances from one year to the next. The Senate passed its own pension reform bill in November. The two bills are expected to be reconciled sometime in early 2006.

 

The Legal and Legislative Committee will continue to follow the progress of these bills and will provide SEBC members with further updates concerning their status next year.

 

Sincerely,

 

Jeffrey R. Capwell

Chair - Legal & Legislative Committee