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Retirement Pension Reform: Retirement Benefits Protected Under New Law

September 18th, 2006


Congress has passed landmark legislation to protect the retirement benefits of more than 44 million employees and retirees under the Pension Protection Act. The White House is expected to approve the legislation.


The legislation will “help to secure the long-term financial health of many endangered multiemployer pension plans whose financial security was jeopardized by the severe contraction of U.S. equity markets early this decade,” states the Multiemployer Pension Plan Coalition in a news release.


“With the new law, the retirement security of more than 9.7 million Americans participating in multiemployer pension plans is more stable,” according to the coalition’s release.


“Multiemployer pension plans are less likely to default, resulting in severe benefit reductions to the Pension Benefit Guaranty Corporation … The legislation gives troubled plans a greater opportunity to recover and provide the benefits expected and deserved by participants.”








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