Pension issues are on Senate Finance Committee's priority list, says Grassley

Proposals dealing with pensions and retirement savings will be among the priority items for the Senate Finance Committee in the next Congress, according to Sen. Chuck Grassley (R-IA) in a memorandum released to the press on November 3, 2004. Grassley, current Finance Committee Chairman, is expected
to resume the chairmanship of the Committee when the new Congress convenes next year.

"We need to adopt a permanent interest rate to be used for calculating pension liabilities," Grassley said. "The temporary corporate bond rate that we enacted earlier this year will expire at the end of 2005, and it's critical that we find a permanent replacement as soon as possible. " Grassley also expressed the hope that the participant protections contained in the "NESTEG" bill will be enacted. "These participant protections are too important to be allowed to languish any longer," he said.

On the health side, Grassley indicated that the Committee will be looking at changes in the law affecting flexible spending accounts (FSAs). He contended that FSAs are hampered by the "use it or lose it" rule that requires employees to forfeit amounts set aside in an FSA that are not used by the end of the year. Grassley said that he has asked the Treasury Department to " take a look at re-writing this rule in a more common-sense way that could, for example, allow employees to carry over a modest amount into the next year." 

For more information on this and related topics, consult the CCH Pension Plan Guide.

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