Legislation was introduced in the U.S. Senate this week potentially offering pension-funding relief to some nonprofits and rural communities.
The Cooperative and Small Employer Charity Pension Flexibility Act would make permanent temporary legislation exempting these groups from the Pension Protection Act of 2006. Additionally, the bill would freeze Pension Benefit Guarantee Corp. premiums until further research on rate structures comes from that agency.
The charities and co-ops said PPA funding regulations aimed at preventing pension defaults are not an issue for their plans, hence their hope for a continued exemption. Subjecting them to PPA rules would require these organizations to shift funds from critical services and hurt their ability to provide pension benefits to their workers.
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