Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
October 30, 2003
Committee Endorses Pension Legislation

A Senate panel has approved a measure meant to let businesses pay less into their workers' retirement plans.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

The bill, which would create a three-year interest rate adjustment, is Congress' answer to companies complaining of skyrocketing pension costs.

The bill was endorsed by the Senate Health, Education, Labor and Pensions Committee, but only after a compromise was brokered between committee Chairman Judd Gregg, a Republican from New Hampshire, and the panel's top Democrat, Sen. Edward M. Kennedy of Massachusetts. The bill still requires final approval by the Senate.

The House passed a similar plan three weeks ago, but it provides only a two-year change in interest rates. And unlike the House bill, the Senate plan would create a commission to review pension funding issues and report recommendations to Congress by December 2005. It requires Congress to act within 120 days of the report.

The Associated Press reports that traditional pension plans have been hurt by a combination of low interest rates, the poor economy, stock market losses, and an increase in retirees. Supporters of changing the rates fear that companies will stop offering the benefit if relief is not granted, putting labor unions on the rare same side as corporations.

Congress is facing a year-end deadline to enact a new measure for future pension plan obligations. The 30-year Treasury bond used to serve as the basis for calculating obligations. But the government stopped issuing new 30-year bonds in 2001. A temporary replacement will expire at year's end.

"Congress must act quickly to replace the 30-year Treasury Bond rate, or companies will be forced to divert billions of dollars from capital investment and job growth in order to satisfy arbitrary pension funding rules," Gregg said.

Source: Associated Press, via Yahoo!

Featured Free Resource:
Cost Per Hire Calculator
Twitter  Facebook  Linked In
Follow Us
Copyright © 2018 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on
Document URL: