Groups Ask Congress To Ease Pension Burden

Sticking with the 24-month smoothing limit would force plan sponsors to use recent depressed market values in valuing assets, forcing them to make large cash infusions at a time of severe financial distress, the groups write in the PPA implementation letter.

"Given the current market situation, the use of fair market value is creating unexpectedly large funding obligations," the groups write.

The groups also ask for a bill permitting sponsors to change pension plan funding methods without getting Internal Revenue Service approval, as currently required under the PPA.

In a separate comment, AALU Chief Executive David Stertzer says it is "critically important during these times of financial crisis to be working on ways we can help businesses and employees deal with circumstances no one anticipated."

Failure to change PPA provisions raises the risk "that many pension plans could be terminated or frozen," Stertzer warns. "No one could have foreseen the dramatic drop that has taken place in the value of pension plan assets and the heavy increased funding obligation for employers."