The new version of H.R. 4123, the American Jobs and Closing Tax Loopholes Act bill, includes provisions that would change defined benefit pension plan funding rules.
The new version of H.R. 4123, described in a section on the website of the House Ways and Committee, is based on the Tax Extenders Act of 2009, which passed in the House in December 2009.
The Senate passed a similar package, the American Workers, State and Business Relief Act, as an amendment to the Tax Extenders Act bill March 10, according to bill supporters.
House Ways and Means Chairman Sander Levin, D-Mich., and and Senate Finance Committee Chairman Max Baucus, D-Mont., have developed the latest version, the American Jobs and Closing Tax Loopholes Act bill.
One section of the bill would extend the 65% federal COBRA health benefits continuation subsidy through Dec. 31.
Another major section of the bill deals with the funding rules for single-employer and multi-employer pension plans.
The American Benefits Council, Washington, and other employer groups have been lobbying hard for pension funding rules changes, arguing that enforcing the rules now in place could force employers to shut down pension plans altogether.
For single-employer plans, the law now lets employers amortize efforts to deal with funding shortfalls over 7 years.