New pension reform act
You're referring to the recent changes to pension laws!
The "New Pension Reform Act" is a set of regulations that aim to improve the sustainability and security of pension plans in the United States. The act was signed into law by President Joe Biden on December 27, 2022, as part of the Consolidated Appropriations Act, 2023.
Here are some key provisions of the New Pension Reform Act:
- Multi-Employer Pension Plans: The act provides relief to multi-employer pension plans, which are often underfunded and struggling to meet their obligations. The plan allows for the creation of a "Pension Rehabilitation Incentive" program, which will provide financial assistance to these plans to help them recover.
- Pension Funding: The act increases the funding requirements for pension plans, which will help ensure that plans are better prepared to meet their obligations. The new funding rules will apply to plans with over 100 participants.
- Pension Plan Termination: The act makes it easier for pension plans to terminate, which can help reduce the financial burden on employers and improve the sustainability of the pension system.
- Pension Plan Mergers: The act streamlines the process for merging pension plans, which can help reduce administrative costs and improve the efficiency of the pension system.
- Pension Plan Disclosure: The act requires pension plans to provide more detailed information to participants about their plan's funding status, investment performance, and other important details.
- Pension Plan Governance: The act strengthens governance requirements for pension plans, including the appointment of independent fiduciaries to oversee plan management.
- Pension Plan Funding Relief: The act provides temporary funding relief to pension plans that are struggling to meet their obligations due to the COVID-19 pandemic.
Overall, the New Pension Reform Act aims to improve the sustainability and security of pension plans, while also providing relief to employers and employees affected by the pandemic.