A bill passed by Congress and recently signed into law by President Obama, will affect the pension plans of millions of Americans. The new law will raise approximately $10 billion dollars by increasing the premiums companies pay the government to insure their pension plans. It will also raise approximately $9 billion dollars by changing how businesses calculate what they must contribute to pension plans.
Under the new law, companies may now estimate their pension fund earnings based on an average interest rate over the past 25 years instead of the past two years. As a result, estimated pension fund earnings will be higher, allowing companies to contribute less. The government will benefit, because companies will make fewer pension contributions which are tax deductible.
Long Island Lawyer
Paul A. Lauto, Esq.