About 300 insurers, business groups, employers and union chapters are pleading with House Ways and Means Committee leaders for help easing Pension Protection Act funding requirements.
Sticking to the current requirements will make the effects of the current turmoil on employers with defined benefit pension plans even worse, the signers of the letter contend.
The letter is addressed to House Ways and Means Committee Chairman Charles Rangel, D-N.Y., and Rep. Jim McCrery, R-La., the highest ranking Republican member of the committee.
The signers are protesting implementation of rules affecting the way pension plan sponsors calculate how well the plans are funded and how much they must contribute to support the plans.
The new rules would require plan sponsors to “smooth” pension plan investment losses over 24 months.
Plan sponsors want to continue to have 48 months to smooth investment losses.
If the 24-month smoothing limit stays in force, plan sponsors will have to make drastic cuts in pension plans, or deep cuts in the number of workers they employ, signers of the letter warn.