House passes pension funding changes in Highway Trust Fund legislation

By : Hazel Bradford
Published : July 15, 2014 - Pensions & Investments

More generous pension funding calculations for defined benefit plans were approved Tuesday by the House, 367-55, as part of legislation extending the Highway Trust Fund. Hazel Bradford
More generous pension funding calculations for defined benefit plans were approved Tuesday by the House, 367-55, as part of legislation extending the Highway Trust Fund.
The increased tax revenue from the decrease in tax-exempt pension fund contributions was part of the funding package for the highway fund, which is within weeks of running out of money. The Joint Committee on Taxation estimated reduced pension contributions would raise $6.4 billion in tax revenue over 10 years.
The changes means funding calculations that were slated to end with 2012 plan years would be available through 2017 if the House version is approved. The Senate Finance Committee is still working on its own proposal, which calls for the calculations to end with 2015 plan years.