Dan Rostenkowski, the former Illinois congressman, died Wednesday. He was 82.
During his 36-year tenure in Congress — including 13 years at the helm of the Ways and Means Committee — Mr. Rostenkowski played a key role in several pieces of tax legislation that affected pension funds and other tax-exempt investors.
He introduced the legislation, signed by President Gerald Ford in 1976, that paved the way for pension funds and other tax-exempt investors to use call options as a hedging device. Under the law, premium income earned by investors for writing covered call options was specifically exempted from unrelated business income tax.
He was instrumental in making sure tougher defined benefit funding rules were included in the pension reform legislation of 1987.
Mr. Rostenkowski was defeated in the 1994 election, after being indicted on charges of misusing taxpayer money. He pleaded guilty to two counts of mail fraud in 1996.