The FINANCIAL — The U.S. Chamber of Commerce on December 12 praised Congress for passing
H. R. 7327, “The Worker, Retiree, and Employer Recovery Act of 2008,” saying the bill is an important first step toward ensuring the viability of pensions and the companies that provide them.
“This bill protects pension plans for American workers and companies,” said Bruce Josten, Chamber executive vice president for Government Affairs. “In no way does it reduce employer’s long-term obligations or their promises to employees.”
The pension reform bill made technical corrections to the 2006 Pension Protection Act (PPA) that will help companies deal with the financial crisis. Such provisions include permitting full smoothing of unexpected losses, allowing sufficient time to transition to the PPA’s 100% funded target, clarifying end-of-year valuations, permitting fixed interest rates to be used for Code Section 415 limit purposes, and providing emergency short-term relief for multiemployer plans.
“In passing this bill, Congress has recognized the importance of these provisions as contributing to the economic recovery of many businesses,” Josten continued.