In the legislative flurry before Congress broke for summer vacation, bipartisan legislation was introduced that would provide nondiscrimination relief to frozen pension plans.
Reps. Pat Tiberi, R-Ohio, and Richard Neal, D-Mass., both on the House Ways and Means Committee, cosponsored the bill, which would provide that frozen pension plans were in compliance with nondiscrimination or minimum participation requirements so long as the plan was in compliance when it was closed to new enrollees.
In order for sponsors to receive the full extent of the tax breaks from their defined benefit plans, three specific criteria must be met: nondiscrimination, minimum coverage, and minimum participation requirements, according to the Employee Benefits Research Institute.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
