A bill to provide optional funding rules for employers in applicable multiple employer pension plans.

Bill: 109-s-4121
Sponsor: Sen. Stevens, Ted [R-AK]
Introduced: 2006-12-08 in the Senate
Policy area: Labor and Employment
Subjects: Alaska
Defined benefit pension plans
Employers' liability
Finance and Financial Sector
Interest rates
Law
Pension funds
Pension trust guaranty insurance

Summary:
action_date: 2006-12-08
text: 
Allows an employer participating in an eligible multiple employer plan to elect to have the pension plan treated as having spun off such employer's allocable portion of the plan's assets and liabilities to an eligible spun off plan. 
 
 Specifies the employer's liability with respect to the spun off plan, which shall be in lieu of any other liability to the Pension Benefit Guaranty Corporation (PBGC) or to the applicable pension plan. Excludes such spun off plan from the funding requirements of the Pension Protection Act of 2006 until at least January 1, 2017. Provides that the employer maintaining such plan is liable for ongoing contributions to the eligible spun off plan as required before amendments made by such Act. Applies the third segment rate (the rate of interest based on the corporate bond yield curve taking into account only bonds maturing after 20 years) to such plan in lieu of the interest rate otherwise used. Provides that the liability of the employer if such plan terminates shall be determined in accordance with the assumptions and methods described under this Act.
 
Makes employers not making an election under this Act liable to the PBGC in an amount equal to the fractional portion of the adjusted unfunded benefit liabilities of such plan as of December 31, 2005, determined without regard to any adjusted unfunded benefit liabilities to be transferred to an eligible spun off plan.
 
Applies this Act to a single employer pension plan that: (1) was established in the State of Alaska on March 18, 1967; and (2) as of January 2, 2005, had two or more contributing sponsors, at least two of which were not under common control.

action_date: 2006-12-08
text: 

(This measure has not been amended since it was introduced. The summary of that version is repeated here.)

 
Allows an employer participating in an eligible multiple employer plan to elect to have the pension plan treated as having spun off such employer's allocable portion of the plan's assets and liabilities to an eligible spun off plan. 
 
 Specifies the employer's liability with respect to the spun off plan, which shall be in lieu of any other liability to the Pension Benefit Guaranty Corporation (PBGC) or to the applicable pension plan. Excludes such spun off plan from the funding requirements of the Pension Protection Act of 2006 until at least January 1, 2017. Provides that the employer maintaining such plan is liable for ongoing contributions to the eligible spun off plan as required before amendments made by such Act. Applies the third segment rate (the rate of interest based on the corporate bond yield curve taking into account only bonds maturing after 20 years) to such plan in lieu of the interest rate otherwise used. Provides that the liability of the employer if such plan terminates shall be determined in accordance with the assumptions and methods described under this Act.
 
Makes employers not making an election under this Act liable to the PBGC in an amount equal to the fractional portion of the adjusted unfunded benefit liabilities of such plan as of December 31, 2005, determined without regard to any adjusted unfunded benefit liabilities to be transferred to an eligible spun off plan.
 
Applies this Act to a single employer pension plan that: (1) was established in the State of Alaska on March 18, 1967; and (2) as of January 2, 2005, had two or more contributing sponsors, at least two of which were not under common control.


Legislative actions:
action_date: 2006-12-08
text: Message on Senate action sent to the House.
action_date: 2006-12-08
text: Held at the desk.
action_date: 2006-12-08
text: Received in the House.
action_date: 2006-12-08
text: Introduced in the Senate, read twice, considered, read the third time, and passed without amendment by Voice Vote. (consideration: CR S11643-11644; text as passed Senate: CR S11643-11644)
action_date: 2006-12-08
text: Passed/agreed to in Senate: Introduced in the Senate, read twice, considered, read the third time, and passed without amendment by Voice Vote.(consideration: CR S11643-11644; text as passed Senate: CR S11643-11644)
action_date: 2006-12-08
text: Introduced in Senate