Numerous funding relief measures have taken place since the Pension Protection Act of 2006 that featured new funding requirements for corporate pension plans and the Financial Accounting Standard Board's FAS 158 rule, also in 2006, which placed pension funding on companies' balance sheets.
Worker, Retiree and Employer Recovery Act of 2008
Action: Plans more than 80% of the way toward their funding targets in 2007 would need to fund to only 92% of those targets in 2008 rather than 100%, reducing mandatory contributions.
Why: Funding relief due to financial crisis-related market losses
Internal Revenue Service Relief Actions of 2008
Action: Permitting different asset valuation methods in 2009 than 2008 without IRS approval, allowing plans to use a market value of assets for 2008 and a smoothed value for 2009.
Why: Funding relief due to financial crisis-related market losses
Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010
Action: Allowing plan sponsors until 2011 to use one of two alternative amortization schedules for a total of two plan years.
Why: Historically low interest rates resulting from Federal Reserve actions following the financial crisis
Moving Ahead for Progress in the 21st Century Act of 2012
Action: Companies permitted to take the 25-year historic average of corporate bond rates to determine a discount rate within a 10% range of the two-year rate.
Why: Historically low interest rates resulting from Federal Reserve actions following the financial crisis
Coronavirus Aid, Relief and Economic Security Act
Action: Gives companies a one-year holiday from making 2020 pension contributions.
Why: Economic impact of the COVID-19 pandemic on multiple industries
