The American Benefits Council applauded the final passage by the Senate on Wednesday of The Highway Investment, Job Creation and Economic Growth Act, S. 1813, as the bill includes a provision that provides pension funding relief to companies.
An earlier version of the legislation contained a provision that would have limited tax-deferred stretches of IRAs for beneficiaries, but was removed by Senate Majority Leader Harry Reid, D-Nev.; Sen. Jon Kyl, R-Ariz.; and Sen. Max Baucus, D-Mont.
Section 40312 of S. 1813 allows companies to use a "more historically accurate interest rate for the purposes of calculating pension assets and liabilities," according to James Klein, president of ABC. "The final language, which closely follows the council's proposal offered in October 2011, recognizes the long-term nature of pensions and makes pension plan funding less volatile."
