Pomeroy Says Pension Revenue Ruling Upholds Employer Responsibility

"The revenue ruling that Treasury released today is good news for the 3.3 million workers who have seen their retirement benefits under defined benefit pensions plans frozen," said Congressman Pomeroy. "While the Department of Labor has tried to water down the employer responsibility to employees covered under a pension plan, Treasury has slammed the door on those efforts with today's action."

Congressman Pomeroy, along with Ways and Means Chairman Charles Rangel, have been deeply concerned about the possibility of transferring frozen defined benefit plans to independent investment firms which might have unfavorable consequences for the retirement security of American workers. That is why Pomeroy called on the Government Accountability Office to look into the occurrence, characteristics and potential impact of pension buyouts on plans and their participants.

In addition to releasing this ruling, the Administration put forth a framework of principles aimed at guiding the development of future legislation that could permit such transactions under certain circumstances. The legislative framework was developed by the Treasury Department, the Labor Department, the Commerce Department, and the Pension Benefit Guaranty Corporation.

"Democratic majorities are highly skeptical of pension buyouts," said Congressman Pomeroy. "I do not anticipate legislation authorizing them -- period."

Congressman Pomeroy is a Member of the Ways and Means Committee, which has jurisdiction over tax and pension policy and is one of the few pension experts in Congress.