Congress approved legislation yesterday that will relieve businesses of making required contributions to their pension plans in the coming year. The plan will save billions of dollars for the businesses that claim the act is necessary to keep them afloat in this time of recession, according to the Associated Press.
"Many businesses with defined-benefit plans have absorbed a double blow: abiding by a 2006 law that they fully fund their plans and seeing the value of the plans eroded by declines in the markets where the pension funds are invested," writes Jim Abrams for the AP.
"The legislation also gives a break to some older people who, at 70 1/2, are required by law to draw down savings from their now-depleted individual retirement accounts and 401(k) retirement funds," Abrams continues.
While the measure does not rule out funding obligations, it adjusts payment schedules in light of the current economic crisis.