Posted:
December 30, 2008
President Bush has signed into law a bill to provide defined benefit pension plans with temporary relief from difficult funding requirements imposed under the Pension Protection Act of 2006.
The legislation postpones the 2006 law’s burdensome provisions — including a requirement that the retirement plans fund liabilities over 15 years instead of 30 — for up to two years.
The legislation, H.R. 7327, was approved in the House Dec. 10 and in the Senate Dec. 11 as traditional pension plans in the public and private sectors reeled under significant and sustained losses in investment markets.
The trustees of the multiemployer American Maritime Officers Pension Plan determined recently that the Plan could meet its obligations and cover its liabilities in 2009 without emergency measures.
However, the trustees warned that specific provisions of the Pension Protection Act of 2006 and continued investment market instability pose significant threats to the AMO Pension Plan in 2010 and beyond.
“We will use every available forum to keep all AMO families current on the nationwide pension crisis and its potential impact on the AMO Pension Plan,” said AMO National President Tom Bethel.
President signs bill postponing pension plan funding mandates
President Bush has signed into law a bill to provide defined benefit pension plans with temporary relief from difficult funding requirements imposed under the Pension Protection Act of 2006.
The legislation postpones the 2006 law’s burdensome provisions — including a requirement that the retirement plans fund liabilities over 15 years instead of 30 — for up to two years.
The legislation, H.R. 7327, was approved in the House Dec. 10 and in the Senate Dec. 11 as traditional pension plans in the public and private sectors reeled under significant and sustained losses in investment markets.
The trustees of the multiemployer American Maritime Officers Pension Plan determined recently that the Plan could meet its obligations and cover its liabilities in 2009 without emergency measures.
However, the trustees warned that specific provisions of the Pension Protection Act of 2006 and continued investment market instability pose significant threats to the AMO Pension Plan in 2010 and beyond.
“We will use every available forum to keep all AMO families current on the nationwide pension crisis and its potential impact on the AMO Pension Plan,” said AMO National President Tom Bethel.