 |
 |
 |
 |
|
 |
 |
Prepared by Mike Ewing, J.D.
Director of Research
United Actuarial Services, Inc.
(317) 580-8659
Fax (317) 580-8651
email: mewing@unitedactuarial.com
© United Actuarial Services, Inc. 2010
2010-48
June 25, 2010
Pension Relief Bill Finally Passes Congress
President Expected to Sign
On Thursday June 24, the House agreed to pass “as is” the previously Senate
passed H.R. 3962, Preservation of Access to Care for Medicare Beneficiaries and
Pension Relief Act of 2010, which included some of the multiemployer defined
benefit plan pension relief that had been in the House passed bill H.R. 4213. See
Client Bulletin 2010-45 for more in H.R. 3962.
H.R. 3962 appears to include the only relief that was in Section 311 of H.R. 4213,
with a few
differences. Those involved in the calculations the law addresses will
want to read the short text. H.R. 3962 is available by “clicking here.”
H.R. 3962 contains parallel amendments to ERISA and the Code.
A copy of the
amendments to just the Code is available by “clicking here.”
The multiemployer
pension relief provisions are found at pages 62-74 of the bill.
The relief for multiemployer plans includes:
use of a separate 30-year amortization period for net investment losses
incurred in either or both of the first two plan years ending after August 31,
2008;
use of an extended smoothing period for the difference between actual and
expected returns
for
either or both of the first two plan years ending after
August 31, 2008 over up to a 10-year period; and
use of a valuation corridor of between 80-130% of the fair market value of
plan assets either or both of the first two plan years beginning after August
31, 2008.
Multiemployer pension plans that take advantage of this
relief must pass certain
tests before any benefit increases
can be implemented. A plan amendment
increasing benefits generally may not go into effect during either of the two plan
CLIENT BULLETIN