A Mixed Bag: Treasury's Proposed Cash Balance and Pension Equity Plan Legislation
Treasury’s proposed legislative solution to end the current limbo status of hybrid plans has some
aspects that are very good and others that are worse than we expected. President's Budget Proposal Includes Benefits Provisions
President Bush submitted his Fiscal Year 2005 budget proposal to Congress on February 2, 2004.
It proposes new savings vehicles and expanded access to health insurance and long-term care
insurance, and addresses other employment-related issues. Administration Proposes Cash Balance Conversion Requirements
In its budget proposal for Fiscal Year 2005, the Bush administration tackles conversions to cash
balance and other hybrid plans. The proposal would establish more restrictive transition rules for
plan conversions and would change the calculations used to determine lump-sum distributions
from hybrid plans. Economic Forecast for an Aging World
The world is getting older. And, of course, no one knows exactly what life will be like in tomorrow’s
older societies. But we do know that age dependency ratios — the ratio of retirees to workers —
will be much higher than we see today. Rate Reform Moves Forward But Road to Final Passage Remains Bumpy
In late January, Congress inched closer to establishing a new temporary pension interest rate when
the Senate approved the Pension Stability Act (H.R.3108). But controversy over some of the act’s
provisions is holding up the works.
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