H.R. 3936: Preserve Benefits and Jobs Act of 2009
To amend the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 to allow time for pensions to fund benefit obligations in light of economic circumstances in the financial markets of 2008, and for other purposes.
Summary:10/27/2009—Introduced.
Preserve Benefits and Jobs Act of 2009 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to: (1) allow a sponsor of a single-employer defined benefit pension plan to elect in 2009 or 2010 extended amortization periods (9 or 15 years) for investment losses incurred in prior years; (2) allow an increase in the valuation range of plan assets; (3) use the funded status of a plan in 2008 to determine benefit restrictions in 2009 and 2010 and prohibit the use of credit balances by pension plans that are under 80% funded in the prior year; (4) exclude plan-related administrative expenses (including investment expenses) from normal cost targets; (5) delay until 2012 the application of certain benefit restrictions to collectively bargained plans; and (6) require a 120% funding target for plans adopting ad hoc amendments that allow lump sum benefits payments and increased plan liabilities. Revises rules relating to information reporting and reportable events. Calculates the amount of any pension plan guarantee by the Pension Benefit Guaranty Corporation (PBGC) using the date of plan termination rather than the date of a plan bankruptcy filing. Amends ERISA provisions relating to multiemployer pension plans to: (1) allow such plans to elect alternative amortization plans and valuation methods in 2009 and 2010 for investment losses; (2) extend by five years the funding improvement period for plans in endangered or critical status; (3) permit multiemployer plans to merge or form alliances with other plans; and (4) increase PBGC guarantees for insolvent plans to increase participant benefits.
REP Co-Sponsors:
Jo Ann Emerson [R-MO8]
Steven LaTourette [R-OH14]
John Linder [R-GA7]
Thaddeus McCotter [R-MI11]
Tim Murphy [R-PA18]
Peter Roskam [R-IL6]
Aaron Schock [R-IL18]
Patrick Tiberi [R-OH12]
Mike Pence [R-IN6] (withdrawn)
http://www.govtrack.us/congress/bill.xpd?bill=h111-3936
LINDER ISSUES STATEMENT RESPONDING TO FOX NEWS’ FALSE CLAIMS THAT REPUBLICANS SUPPORT LEGISLATION THAT GIVES TAXPAYER MONEY TO UNIONS
May 26, 2010
Contact: Jennifer Drogus
Washington, DC—Representative John Linder (R-GA) issued the following statement in response to Fox News Channel’s Geri Willis, regarding the mistaken report she issued yesterday stating that Republicans were supporting a bill that would “bail out” unions:
“I would like to provide a bit of clarity in response to the false information provided yesterday on Fox News about my alleged support of a “Big Union Bailout.” First and foremost, I have opposed all bailouts from the beginning and continue to despise this cowardice that puts the American taxpayer on the hook for overpromised benefits and underperforming profits.”
“The legislation I support would allow employers additional time to recover from the 2008 asset losses and flexibility in order to catch up on pension funding requirements imposed under the Pension Protection Act of 2006—at no cost to the American taxpayer. Our economy has failed to rebound as expected and Democratic policies have only provided businesses greater tax uncertainty and new health care burdens. To counteract these damaging policies, while protecting both taxpayers and pensioners, I co-sponsored a bill to allow employers between 9 or 15 years, instead of the current 7 years allowed under the Pension Protection Act, to rebound from investment losses. The pension funding relief I support was broad and received wide-ranging praise from businesses and organizations of many sizes and stripes including the Girl Scouts of the U.S.A., Southern Company, Mirant Corporation and Fox Entertainment Group.”
“By providing employers some options in fulfilling their pension obligations, employers will hopefully be spared from making the more difficult choice between funding future pension obligations or laying off employees. Furthermore, if Congress fails to provide pension funding relief in one form or another, more pensions will likely fail and taxpayer funds would be used to clean up the mess.”