Senate Passes Pension Reform Legislation

The Senate, on November 16, 2005, approved the Pension Security and Transparency Bill of 2005 (Sen 1783) by a vote of 97 to 2. Key provisions in the legislation include strengthening funding requirements for defined benefit plans, new rules for multi-employer plans, encouraging automatic enrollment in and portability of 401(k) and other defined contribution plans, permitting state and local government adoption of 401(k) plans, and special rules to help troubled industries such as the airline industry avoid plan terminations. The House is expected to take up its version of the legislation in December; that legislation cleared the House Ways and Means Committee on November 9, 2005. The Administration has expressed concern that the Senate legislation does not go far enough to fund the Pension Benefit Guaranty Corporation (PBGC). .