The House Education and Labor Committee today voted 29-17 to approve legislation for enhanced defined contribution plan fee disclosure and investment advice requirements along with more funding relief provisions for defined benefit plans.
An amendment added today to the 401(k) Fair Disclosure and Pension Security Act of 2009 would allow DB plans to contribute to their plans only the interest on their 2008 asset losses over the next two years, then amortize the years actual asset losses over the subsequent seven-year period.
The latest funding relief amendment was added to other DB relief proposals unveiled by the committee on Tuesday, which allow plans that elect to use the spot yield curve to value pension liabilities this year to use the smoothed yield curve to value liabilities in 2010 and subsequent years if desired.
The bill would postpone the effective date of the funding provisions in the Pension Protection Act of 2006 to plan years beginning after Dec. 31 this year; allow DB plans to amortize investment expenses over seven years; and require all DB plans that are underfunded by more than $50 million to report actuarial and financial information to the PBGC.
The bills DC provisions are substantially the same as they were when approved as separate bills by the House Health, Employment, Pension and Labor Subcommittee on June 17.
In an interview after the vote, committee Chairman Rep. George Miller, D-Calif., said it has not been determined whether the bill would go directly to the House floor or be referred to the House Ways and Means Committee.