<nobr>Jan 23, 2004</nobr>

Support for Replacing 30-Year Treasury Rate: (1)PBGC Board Letter to Frist and (2) OMB Administration Policy Statement

Two documents that support replacing the 30-YEar Treasury Bond rate:

The PBGC Board of Directors is publicly urging Congress to pass H.R. 3108 stating that the expired temporary rate used to calculate pension plans denying plan sponsors the certainty they need to plan their pension funding for 2004. However the Board was emphatic that the legislation not include any provisions that would change Deficit Reduction Relief (DRC), saying that these types of provisions by Congress would encourage firms to underfund their pensions by substantially weakening pension funding requirements.

A statement from the Executive Office of the President of the Office of Management and Budget urged for quick passage of the bill. It also warned that the Administration would strongly oppose any amendment that would substantially weaken funding requirements for single-employer or multiemployer pension plans.

The OMB letter also said that the Administration has consistently taken the position that any provisions to alter the DRC rules should be reviewed in that context. “The DRC is part of a flawed system of funding rules that should be reviewed and reformed.“


Text Files:

For the complete PBGC Board Letter to Frist Re: Pension Funding Equity Act Click Here

Click here OMB Statement of Administration Policy

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