Shimkus Supports Reforms to Protect Pensions
December 15, 2005
SHIMKUS SUPPORTS REFORMS TO PROTECT PENSIONS
Washington, DC ..Congressman John Shimkus (R, Illinois-19) supported House passage of the Pension Protection Act of 2005 (HR 2830), legislation designed to protect workers' pensions and to increase retirement savings.
"There have been many recent incidents of the federal Pension Benefit Guaranty Corporation having to take over the pensions of large corporations due to those companies filing bankruptcy or having not fully funded their pensions," Shimkus
explained. "This legislation will take a balanced approach to protect worker pensions and update pension laws."
Provisions strengthened under this legislation include:
+ Employers will be required to fully fund traditional defined benefit pensions
under tighter rules.
+ Severely underfunded pension plans will be subject to accelerated funding rules to
reduce their risk of default.
+ Employers will not be able to fund executive pensions at the expense of worker
+ Amortization periods for multiemployer pension plans are reduced from 30 years
to 15 years.
+ Tax benefits will encourage full funding of pension plans.
+ New triggers will measure pension plan finances and force financial improvement
on plans inadequately funded.
In addition to these pension reforms, this legislation promotes retirement savings through IRA provisions for those age 50 and older and for small employers to offer retirement plans.
"These reforms will protect employees, retirees, and taxpayers," Shimkus noted. "Many companies, financial institutions, and unions support these reforms. This was a real example of business and labor working together for the good of employees and retirees."