Search
 

New Pension Funding Obligations Pose Threat

Faced with huge contributions due to the financial crisis, businesses seek help from Congress.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Worried that new pension funding requirements that take effect next year could cripple corporations, business and finance officials say they can’t wait for president-elect Barack Obama and the 111th Congress to be sworn in. So they are pressing lame duck legislators to convene this month and stall implementation of some Pension Protection Act (PPA) provisions until the markets stabilize and credit is more widely available.

The double-whammy of plunging pension assets and the credit crunch put plan sponsors “in an untenable position” when it comes to meeting full funding requirements, a number of business organizations said in a joint letter to congressional leaders. “At a time when companies need cash to keep their businesses afloat, they are also required to make unexpectedly large contributions to their plans in order to meet funding requirements,” states the letter signed by the Association for Financial Professionals (AFP) and Financial Executives International (FEI), among other organizations.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.