Understanding the pension funding reform proposal

The United States' private pension system used to be the envy of the world. Today, that same system is in a state of crisis due to the unfortunate confluence of circumstances in the economy. To begin to address this issue, on January 10, 2005, Department of Labor Secretary, Elaine Chao, unveile...

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Bibliographic Details
Published inJournal of Pension Planning and Compliance Vol. 31; no. 3; p. 94
Main Author Zong, Linda
Format Journal Article Trade Publication Article
LanguageEnglish
Published New York Aspen Publishers, Inc 01.10.2005
Subjects
Annual reports
Bankruptcy
Corporate bonds
Current liabilities
Default
Defined benefit plans
Defined contribution plans
Disclosure
Employee benefits
Employees
Employers
Flat rates
Funding
Insurance premiums
Interest rates
Investments
Junk bonds
Laws, regulations and rules
Lump sum distributions
Older workers
Pension plan funding
Pensions
Proposals
Reforms
Retirement
Retirement benefits
Social security reform
Wages & salaries
Yield curve
United States > US
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Summary:The United States' private pension system used to be the envy of the world. Today, that same system is in a state of crisis due to the unfortunate confluence of circumstances in the economy. To begin to address this issue, on January 10, 2005, Department of Labor Secretary, Elaine Chao, unveiled the Bush Administration's pension funding reform proposals, outlining the following broad areas of reform to protect those workers and retirees receiving pension benefits and improve the financial status of the Pension Benefit Guarantee Corp (PBGC): 1. Reform funding rules; 2. Reform insurance premiums; 3. Improve disclosure; 4. Prevent under-funding; and 5. Expand retirement choices. The purpose of the administration's single employer pension reform proposal is to improve the PBGC's standing to enforce contributions on plan sponsors in bankruptcy and notify participants when plan sponsors file for bankruptcy, including effect on plans.
ISSN:0148-2181