Administration's Funding Proposals Score High Marks for Protecting
the PBGC and Earned Benefits, Low Marks for Preserving the System
In the recently released budget proposals, the Bush administration outlines pension funding
reforms whose stated goals are twofold: to protect workers' benefits and to avert a taxpayer
bailout of the financially beleaguered Pension Benefit Guaranty Corporation. 2006 Budget Includes New Details on Funding Reform
On January 10, 2005, the Bush administration released a proposal to overhaul the funding rules
for single-employer defined benefit plans, establish new disclosure requirements for plan sponsors
and raise PBGC premiums. President Bush's budget proposal for the 2006 fiscal year provided more
details about the proposal. President's Budget Proposal Also Addresses Hybrid Pension Plans,
Other Issues
In addition to proposing reforms to the defined benefit funding rules, President Bush's budget
proposal for fiscal 2006 would change the rules governing hybrid pension plans, health care plans
and retirement savings plans. AARP Blocks EEOC From Ruling on Retiree Medical Benefits and Medicare
On February 4, a federal court in Pennsylvania blocked the Equal Employment Opportunity
Commission from issuing its final rule on coordinating retiree medical benefits with Medicare. Workers' Retirement Plan Preferences and Expectations
Social Security and the baby boomers' impending retirement have received considerable attention
from the media, the business community and academia lately. IRS Proposes Revisions to Relative Value Disclosure Regulations
The IRS has issued proposed regulations to revise the final relative value disclosure regulations. IRS Issues Guidance on Deduction for Repatriated Foreign Earnings
The American Jobs Creation Act created a temporary tax benefit for companies that repatriate
earnings of foreign subsidiaries and use the funds for specified purposes. Annual Funding Notice for Multiemployer Defined Benefit Plans
The U.S. Department of Labor has issued proposed regulations implementing the annual funding
notice requirement for multiemployer defined benefit plans, which was enacted by the Pension
Funding Equity Act of 2004. PBGC Releases Final 4010 Regulations
In March, the Pension Benefit Guaranty Corporation released final revised 4010 regulations. News in Brief
News in Brief: JCT Recommendation Would Affect Cafeteria Plans, Dependent Care Plans;
Senators Introduce FSA Rollover Bill; Senate Approves Genetic Nondiscrimination Bill; and
IRS Challenges Short-Service Employee Accruals for Nondiscrimination Testing
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