Tuesday, February 24, 2009
Corporations might get relief from stringent pension-law funding requirements — but with a big string attached that some experts see as a step toward a mandatory retirement system. Under a proposal now being considered by senior Democratic congressmen, companies with active plans would get a break from the 2006 Pension Protection Act's onerous new funding requirements, but only if they agree not to freeze their plans to new employees — perhaps for several years. Companies also would have to agree not to terminate their plans to get the funding relief. In addition, frozen plans would not qualify, even if those freezes apply only to new employees.