INSIDER

Card-Check Legislation Stalled in Congress
The Employee Free Choice Act (EFCA) — also referred to as "card check" — was reintroduced on March 10. The act would allow the National Labor Relations Board (NLRB) to certify a union once a majority of employees sign authorization cards and would establish strict and mandatory deadlines for reaching an initial bargaining agreement. But the act is currently stalled in Congress and lacks the 60 votes required to overcome a filibuster.

Advocating for Pension Funding Relief
In the wake of the financial crisis, defined benefit (DB) funding relief has become a critical issue for many plan sponsors. The Worker, Retiree and Employer Recovery Act of 2008 (WRERA) allowed sponsors of underfunded plans to rely on their 2008 funded status to avoid plan freezes, phased in the Pension Protection Act funding targets and made other changes. In late March, the IRS offered additional relief by permitting plan sponsors to use a reasonable interpretation of the law (in the absence of final regulations) in selecting a yield curve for determining plan liabilities. This will provide options that can reduce required DB plan contributions for the 2009 plan year and also dim prospects for further relief from Congress, at least in the near term. However, the potential for steep contribution hikes for the 2010 plan year may fuel a renewed push.

Health Care Reform Debate Heats Up
The health care reform debate began taking shape in March and intensified in April. In early March, President Obama convened a forum at the White House, which was followed by regional forums across the country. Lawmakers hope to move legislation through the House and Senate during the summer and to pass final legislation this year. It is an ambitious agenda — and one with important cost, design, compliance and other implications for employer-sponsored health plans.

Economic Crisis Prompts Many Companies To Suspend Contributions To Employee Savings Plans
During this severe recession, many companies are trying to trim costs where they can to stay afloat, and the cost-cutting measures include layoffs, hiring freezes, furloughs, salary freezes and even salary reductions. Employers are also looking at ways to lower retirement plan costs. Many are opting for a short-term solution — cutting company contributions to defined contribution (DC) plans.

Most Viewed Articles

	IRS Releases Grab Bag of Guidance on Pension Distributions DOL Issues Final Regulations on Timing of QDROs Looking Into the FASB’s Crystal Ball: What’s Ahead for Liability Measurement? Default Investment Options in Defined Contribution Plans: A Simple Comparison