Proposal to Strengthen H.R. 3396

HEHS-94-181R: Published: Jun 24, 1994. Publicly Released: Jul 13, 1994.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO provided information on options that would strengthen H.R. 3396. GAO noted that: (1) H.R. 3396 would improve funding for many underfunded pension plans; (2) H.R. 3396 should be strengthened so that sponsors of poorly funded plans are required to contribute more than the Employee Retirement Income Security Act's (ERISA) minimum requirements; (3) the Pension Benefit Guaranty Corporation (PBGC) needs to determine what threshold defines an underfunded plan so that the risks of benefit loss are reduced and plan contributions are increased; (4) PBGC believes that strengthening H.R. 3396 is unnecessary and that the minimum ERISA contribution will be sufficient to move plans to full funding; (5) funding mechanisms are needed to ensure that a plan's funding ratio will not fall too low, because hidden liabilities can deteriorate a plan's funding rapidly; and (6) a reasonable threshold to define a underfunded plan would be 75 to 85 percent.

Sep 24, 2020

Aug 28, 2020

Aug 13, 2020

Jun 16, 2020

Feb 27, 2020

Jan 9, 2020

Dec 18, 2019

Oct 21, 2019

Oct 4, 2019

Looking for more? Browse all our products here