Senate Considers Pension Downsizing Bill

The Senate Health, Education, Labor and Pensions Committee recently approved legislation that would amend the Employee Retirement Income Security Act (ERISA) to clarify the definition of “substantial cessation of operations” for purposes of section 4062(e). In “Senate Committee Advances ERISA Amendments Impacting PBGC”, PlanSponsor.com explains that:

“The Senate’s Health, Education, Labor and Pensions (HELP) Committee advanced a bill seeking to better define rules for protecting pension assets when companies downsize or close. Congress may be deadlocked on any number of issues, but the HELP Committee was able to reach strong bipartisan consensus on seven bills in recent weeks—sending the would-be laws to Senate leadership for potential deliberation before by the full upper house. One of the pieces of legislation, known as S. 2511, would amend the Employee Retirement Income Security Act (ERISA)—specifically the sections pertaining to “pension downsizing liability rules.”

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