AGC Lobbies for Pension Relief Bill

AGC is lobbying Capitol Hill to enact legislation in 2009 to provide single- and multi-employer pension plan funding relief to lessen the effects of investment losses in 2008 and 2009.  In a letter sent to all members of the U.S. House of Representatives today, AGC urged the House to cosponsor H.R. 3936, the Preserve Benefits and Jobs Act, sponsored by Representatives Earl Pomeroy (D-N.D.) and Pat Tiberi (R-Ohio).  Under the bill, multi-employer plans that meet a solvency test would be eligible for relief through two options that would allow employers to repay recent losses over a 30-year period, and employers would be unable to increase plan benefits for two years.  For plans in endangered or critical status, the bill would extend the rehabilitation and funding improvement periods.  The bill would also facilitate alliances and mergers of funds, and allow the Pension Benefit Guarantee Corporation (PBGC) to provide assistance to lower long-term costs.  The bill would also update PBGC benefit guarantees.  The House Ways and Means Committee is expected to consider H.R. 3936 in the next couple of weeks.  The Senate has yet to introduce similar legislation. AGC, along with the National Coordinating Council on Multiemployer Plans (NCCMP), has been advocating for legislation to provide relief to troubled defined benefit pension plans.  AGC will continue to work with NCCMP and Congress to enact pension funding relief legislation prior to the end of the year.  AGC urges members to contact their Senators and Representatives in support of H.R. 3936 by using AGC's Legislative Action Center.  If your company contributes to a multi-employer plan that would benefit from the legislation, you are able to customize the letter to describe your company's situation to your members of Congress. For more information, contact Karen Lapsevic at (202) 547-4733 or lapsevick@agc.org.