Low interest rates have led several major US trade groups to push Congress to reconsider the amount of money their members are required to feed into their pension funds — though similar requests have, in the past, helped lead to pension shortfalls such as those experienced by the flailing American Airlines.
It also comes at the same time as several major employers, including the Bank of America and General Motors, are moving away from their defined-benefit plans and moving more employees into 401(k) variants.
As reported in the Wall Street Journal, companies are reacting to a provision in the new Senate highway bill that would recompute the formula by which they would calculate their contribution to pension funds, which might reduce their required input by billions.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
