Senate HELP Committee Approves Interest Rate Reform Bill
October 29: The Senate Committee on Health, Education, Labor and Pensions (HELP) has approved the Pension Stability Act, which would substitute a conservative long-term corporate bond rate in place of the existing 30-year Treasury bond interest rate currently used for a variety of pension calculations.
The American Benefits Council has consistently advocated the use of a corporate bond rate blend on a permanent basis. "If the 30-year Treasury rate is not replaced before the end of the year, American employers and employees could face the prospect of pension plan freezes and terminations," Klein said. "We commend the bipartisan effort to correct this serious problem and urge the HELP Committee to approve the Pension Stability Act."
Council staff are now available to comment further on the pension interest rate replacement issue and other issues related to defined benefit pension plans.
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