The American Society of Pension Professionals & Actuaries wrote a letter to the Surface Transportation Reauthorization Act conferees voicing support for the group's plans to modify the single employer pension funding rules to adjust for artificially low interest rates, such as those the country is currently experiencing.
In the letter, ASPPA executive director and CEO Brian Graff said that, "many small business owners that sponsor defined benefit plans have seen dramatic increases in minimum required contributions due to the forced low-interest environment. This level of minimum contributions could not be foreseen when the plans were adopted, and the result is a serious cash drain to meet contribution demands."
He added that modifying the rules to moderate the funding requirements in times of extreme and unsustainable interest rates would provide much-needed stability.
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