Resource Type: Legislation & Regulations
Restrictions on Shutdown Benefits
Shutdown benefits are special benefits that some plans provide for workers at a plant or facility that closes. These benefits are especially important to workers who have not yet reached retirement age, but are not in a position to change careers or relocate for work. Shutdown benefits bridge the gap between the time when a […]
Restrictions on Benefit Improvements
The rules prohibit plans from adopting changes that would increase the cost of the plan if it is less than 80 percent funded or if such changes would cause the plan to become less than 80 percent funded. The following changes are prohibited: Increases in benefits Establishing new benefits such as special early retirement benefits […]
Restrictions on Payment of Lump Sums and Accelerated Benefits
A plan is not allowed to pay lump sums if the plan is less than 60 percent funded. A plan subject to this restriction can only pay a monthly benefit equal to a lifetime monthly annuity. If the plan is more than 60 percent funded but less than 80 percent funded, a plan with a […]
Restrictions on Earning Future Pension Benefits
If a plan is less than 60 percent funded in any year, employees will not earn any pension benefits for that year even though they continue working in jobs covered by the plan. At retirement, the employees will receive the benefits they earned up to the point when the benefit accruals stopped. Employers can reinstate […]
Electronic Disclosure by Employee Benefit Plans (June 6, 2011)
The U.S. Department of Labor issued a Request for Information regarding electronic disclosure by employee benefit plans. Read the Center’s comments.
Definition of the Term ‘‘Fiduciary’’ (February 3, 2011)
The Department of Labor has proposed a regulation expanding the definition of the term “fiduciary”. These regulations define when someone giving investment advice to participants in a 401(k) (or to the people running the plan) must act only in the interests of the participants in the plan, and not in their own self-interest. Read the […]
Bill would automatically enroll employees in workplace IRAs
On August 5, 2010 Senator Jeff Bingaman (D-NM) introduced the Automatic IRA Act of 2010 (S. 3760). This bill would require most employers that do not sponsor a retirement plan to automatically enroll their employees in an IRA. Employees would be given choices about whether to participate in the IRA, what type of IRA (Roth […]
Bill Would Require Plans to Disclose 401(k) Purchasing Power
On December 3, 2009 Senator Jeff Bingaman (D-NM), Senator Johnny Isakson (R-GA) and Senator Herb Kohl (D-WI) introduced the Lifetime Income Disclosure Act (S. 2832) into the Senate. This bill would require 401(k) and other individual account plans (such as 403(b) and 457 plans) to give participants estimates of how much the money in their accounts […]
Funding Relief for Traditional Pension Plans
On October 27, 2009 Representative Earl Pomeroy (D-ND) and Representative Pat Tiberi (R-OH) introduced the Preserve Benefits and Jobs Act of 2009 (H.R. 3936) [PDF]. This bill would give companies longer periods of time to make up for funding losses sustained during the economic downturn. Specifically, employers sponsoring single-employer pension plans could spread out their […]
Bill Requires 401(k) Fee Disclosures
On April 21, 2009, Representative George Miller (D-CA-7) introduced the 401(k) Fair Disclosure for Retirement Security Act of 2009 (H.R. 1984) [PDF]. This bill would require 401(k) plans that allow employees to choose their investments to provide employees annual statements that would include itemized information about the fees charged to their accounts as well as […]
Disclosure of Fees and Other Information to 401(k) Participants
The 401(k) Fair Disclosure for Retirement Security Act of 2009 (H.R. 1984) would require that those 401(k) plans that give participants control over their investments, provide them with a yearly statement including itemized information about the fees charged to their 401(k) accounts and other information about their investments. The statement would have to include: Total fees assessed to the participant’s account during […]
Sick Leave Counts in FERS Benefit Calculation
This provision would require that Federal Employee Retirement System (FERS) include workers’ unused sick leave in the calculation of their monthly benefit payments. Currently only workers covered by the old Civil Service Retirement System may count unused sick leave toward their pensions. The provision phases in the change so that workers retiring within three years of […]
