quote Bush Signs Pension Legislation Relief for struggling plans granted, while a two-year fix for funding formulas is applied. By Laurie Kulikowski April 13, 2004- Less than a week before the April 15th deadline for corporate pension quarterly contributions to the Pension Benefit Guaranty Corporation, the House and Senate finally agreed on a pension plan relief bill. On Saturday, President George W. Bush signed H.R. 3108, the Pension Funding Equity Act of 2004, into law. By temporarily replacing the 30-year Treasury bond rate with a composite of long-term corporate bonds, the Act ensures a basis for determining how much employers must contribute to the PBGC for the next two years. The bill also lets employers struggling with underfunded defined benefit plans immediately lower their required contributions by giving them two-year relief with a special option, called the deficit reduction contribution. Most notably, airlines, steel makers and the Transportation Communications Union pension plans will be allowed to reduce their payments by 80% for two years. Other multi-employer plans will also receive relief. ..... quote http://www.financial-planning.com/pubs/fpi/20040413101.html just a side note: pension plans are government backed. if company cant paid, other tax payers have to foot the bills. also the group benefited from this are mostly unions. what do you think?
kinda like IRAQ: just a side note: IRAS is US government backed. if country cant pay, US tax payers have to foot the bills. also the group benefited from this is mostly Dick Cheney's buddies. At least with pension plans, W is doing something for Americans.
I have mixed feelings about this legislation. On the negative side, it means companies likely aren't adequately funding their pension plans and increases the likelihood that taxpayers will have to bail the plans out. On the other hand, without the legislation, some companies would terminate their pension plans due to higher funding amounts. You can't do this long term but time will tell whether or not this was a good move.