Pension Protection Act of 2005

PENSION PROTECTION ACT OF 2005 -- (House of Representatives - December 15, 2005)

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Mr. BOUSTANY. Madam Speaker, I rise in strong support of this bill.

This bill strengthens our Nation's retirement system and comes at a critical time as economic conditions are requiring companies to confront new challenges.

This legislation provides steps to help employers plan and manage finances accurately, to determine pension liabilities and to ensure pensions are funded and benefits are paid.

I want to discuss an important section of the bill regarding multi-employer pension plans. Under current law, multi-employer pension plans are loosely regulated and have few requirements for timely disclosure of information.

For the first time ever, beneficiaries and contributing employers of these multi-employer pension plans will have transparent information to make accurate funding decisions. The legislation creates a system for identifying financially troubled plans and improving their funding status.

Furthermore, new notice and disclosure requirements will provide participants with clearer and more specific financial information. Workers and retirees must be provided with an annual update on the plan's assets, liabilities, financial condition and funding policies. Underfunded plans are required to file financial information with the PGBC and provide notice to workers and retirees. Existing financial disclosure documents are updated to provide more information, particularly about plan mergers and actuarial assumptions.

Multi-employer plans must notify a contributing employer of their withdrawal liability upon request.

Madam Speaker, I urge colleagues to back this bill and take a very important opportunity to put employees' pension plans on a solid foundation.

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