Benefits Council Calls Senate Passage of Pension Bill 'Long Overdue'

[2] "Congress' approval of this important measure is long overdue," Klein said. "Now it is time for President Bush to sign H.R. 3108 into law, providing relief for beleaguered plan sponsors and security for millions of plan participants saving for retirement."

[3] Under current law, the 30-year Treasury bond rate is used to determine funding obligations for pension plans. The current 30- year Treasury rate, however, is dangerously outdated, creating artificially inflated pension obligations that will drain billions of dollars from capital investment and job creation.

[4] "We appreciate the dedication and tenacity of the conferees in negotiating this important compromise, despite political and ideological differences," said Klein. "If Republicans and Democrats and business and organized labor can agree to do what is best for Americans, then there truly is hope for the future of the defined benefit pension system."

[5] "We also wish to recognize those House and Senate members who initiated the proposal to replace the 30-year Treasury bond rate with a corporate bond rate." Klein said. "The Council has consistently supported this approach -- as originally set forth in legislation crafted by Representatives Rob Portman (R-OH) and Ben Cardin (D-MD). We applaud the leadership of the tax and labor committees for seeing this important legislation through Congress, and we look forward to working with them in the future as we continue to encourage the use of a corporate bond rate as a permanent solution to the defined benefit pension funding crisis."

[6] The legislation will now proceed to the President's desk for his signature. "American employers and employees will greatly benefit from the legislation approved today -- but only if and when President Bush signs the bill into law. We urge the Administration to enact this critical legislation now, before one more pension plan goes extinct."

[7] To arrange an interview with Klein, Lynn Dudley, Council vice president & senior counsel, or Diann Howland, Council vice president, retirement policy, please contact Deanna Johnson Keim, APR, at djkeim@abcstaff.org or Jason Hammersla, Council communications associate at jhammersla@abcstaff.org. Both can be reached via phone at 202-289-6700.