Sen. Charles E. Grassley, R-Iowa, wants to incorporate a version of the pension reform legislation he introduced in February in the Democratic-sponsored accounting reform legislation during debate on the floor of the Senate. His pension bill would tighten protections for participants of 401(k) plans that run into financial difficulties, give them the right to diversify out of employer stock, and require employers to give advance warning of "blackout” periods when participants can’t switch between investments.
The Senate Finance Committee is scheduled to mark up its own version of pension legislation, expected to resemble Mr. Grassley’s legislation, on Thursday. That bill, which will include a provision protecting employers from liabilities if they offer financial advice to participants, will not be rolled into the accounting legislation, said a spokesman for Sen. Max Baucus, D-Mont., the committee chairman.
