Panel Hears Attacks On Deferred Comp Provisions

Sen. Charles Grassley, R-Iowa, who was chairman of the Senate Finance Committee when the Republicans controlled the Senate, reportedly dislikes the House bill, according to published reports.

Rep. Bill Pascrell, D-N.J., said at the hearing that he has "deep reservations" about the Senate bill because it would "go back in time" and penalize deferred comp arrangements that are already in place.

Any new law should be enacted prospectively, Pascrell said.

Rep. Earl Pomeroy, D-N.D., questioned what the effect the Senate bill would have on pension plans. He said Congress should ensure that those plans are protected and not hurt by the Senate bill.

Rep. Joseph Crowley, D-N.Y, also expressed "deep reservations" about the Senate bill, but he also said he respected the Senate's intent.

In written comments submitted to the committee, Kenneth Cohen, deputy general counsel at Massachusetts Mutual Life Insurance Company, Springfield, Mass., says non-qualified deferred compensation plans "are particularly essential for the survival and profitability of small businesses and family businesses."

"We understand the concerns surrounding excessive CEO pay and the potential equity issues such pay may raise," Cohen says. "However, the solution should not come at the expense of small and family-run businesses and middle management employees."