See House companion bill H.R.2830 |
SUMMARY AS OF: 9/28/2005--Introduced.
Pension Security and Transparency Act of
2005 - Amends the Employee Retirement Income
Security Act (ERISA) and the Internal
Revenue Code (IRC) to establish new minimum
funding standards for single-employer and
multiemployer defined benefit pension plans.
Limits benefits under underfunded plans.
Establishes additional funding rules for
multiemployer plans in endangered or
critical status. Requires measures to
forestall insolvency. Revises deduction
limits for such plans. Revises deduction
rules for combinations of defined
contribution plans and defined benefit
plans. Sets forth interest rate assumptions
for determining lump sum distributions and
for applying benefit limitations to such
distributions. Increases certain premiums to
be paid to the Pension Benefit Guaranty
Corporation (PBGC). Provides for phasing-in
increases of: (1) the annual flat-rate
premium paid by all single-employer plans;
and (2) the additional risk-based premium,
which is to be paid by all underfunded
plans. Limits PBGC guarantee of shutdown
benefits and other unpredictable contingent
event benefits under single employer plans.
Revises requirements for defined benefit
plan funding notices. Requires additional
disclosures in annual reports and to plan
participants and beneficiaries. Provides
that defined benefit pension plans,
including hybrid plans such as cash balance
plans, may be deemed nondiscriminatory as to
age if they comply with certain
requirements, in cases of reduction in
accrued benefits because of attainment of
any age. Requires defined contribution plans
to allow employees to divest employer stock
and diversify their pension asset
investments. Provides that defined benefit
pension plans, including hybrid plans such
as cash balance plans, may be deemed
nondiscriminatory as to age if they comply
with certain requirements, in cases of
reduction in accrued benefits because of
attainment of any age. Sets forth
participant protections, including
diversification rights, under defined
contribution plans. Revises requirements
relating to: (1) portability and
distribution rules; (2) information,
including investment advice and retirement
planning, to assist pension plan
participants; (3) spousal pension protection
under ERISA and the Railroad Retirement Act
of 1974; (4) employee plans compliance
resolution systems; (5) governmental and
tribal pension plans; (6) black lung
disability trust funds; (7) treatment of
death benefits from corporate-owned life
insurance; and (8) compensation and pensions
of Tax Court judges. |
