The CBF debates and develops recommendations on existing and proposed legislation and regulations affecting pension and incentive compensation plans, health and disability insurance, unemployment compensation and regulation, and other areas. When deemed appropriate, the CBF may communicate its positions to government agencies, legislators, industry regulators and standard-setters as well as professional and business organizations. The CBF meets in-person on a quarterly basis and by other means as necessary.
During the meeting, the CBF discussed legislative and regulatory priorities being debated by Congress and the Obama Administration, including the challenges facing multiemployer pension plans, the U.S. Department of Labor proposed fiduciary rule, U.S. Department of Treasury proposed regulations on nondiscrimination testing, and future of the Affordable Care Act under a new president and Congress next year.
Specifically, the committee learned the House and Senate are conducting hearings on ways to address multiemployer pension plan funding concerns, including legislation on new plan designs and potential increases in PBGC premiums for multiemployer plans. The committee also heard the DOL may issue the final fiduciary regulations in the near future, and that Congress may challenge the new regulations in the coming months.
The CBF also reviewed the details of two recent pension proposals from the Financial Accounting Standards Board (FASB) and discussed concerns the committee may include in a comment letter to the FASB this spring. For example, the committee’s initial thoughts are the presentation proposal may affect companies differently, and some companies may face significant implementation challenges. On the disclosure project, the committee is considering whether the additional disclosures required will be helpful to users of financial statements.
In addition, the CBF discussed issues facing the PBGC, including recent premium increases and legislative efforts to stop Congress from using premium increases as a continued source of revenue to offset unrelated funding priorities moving forward. The committee reviewed a recent report issued by the PBGC Participant and Plan Sponsor Advocate stating that the PBGC has made progress on its administrative practices with participants, but additional work is underway to improve the way the PBGC and plan sponsors address financial issues in the defined benefit system.
Finally, the CBF learned about the impact of retirement security on the federal budget and efforts underway to address long-term budgetary concerns while providing Americans financial security in retirement. For example, the committee learned about a bipartisan commission of policymakers, economists, and retirement policy experts that is reviewing the current and future state of the U.S. retirement system and is expected to make policy recommendations in the coming months.
For more information on FEI’s Committee on Benefits Finance, contact Karen Lapsevic, Managing Director, Technical Activities, at 202-626-7809 or [email protected].