WASHINGTON, D.C. – The U.S. House of Representatives approved Friday the conference report on the Pension Protection Act of 2006 (H.R. 4), comprehensive legislation to modify contribution laws and ensure that employers properly fund worker pension plans. The bill passed by a 279 to 131 vote.

“Millions of employees and retirees around our nation have suffered for far too long because of our nation’s outdated pension laws,” said U.S. Rep. Ron Lewis (KY-02).  “The system is broke and reform has been long overdue.” 

The Pension Protection Act addresses the growing problem of businesses under-funding pension plans by requiring all employers to fully fund their pension obligations, allowing seven years to fund shortfalls. Companies will also be required to provide more information to workers about the status of their plans. The bill also prevents employers from using bankruptcy as a way to be released from their pension obligations.

“Men and women who have worked hard their whole lives should not have their retirements jeopardized by mismanagement,” said Lewis. “The bill we passed today will secure the pensions of employees and retirees and prevent taxpayers from having to bail out the Pension Benefit Guaranty Corporation.”

The Pension Protection Act also incorporates tax provisions to promote savings, further enhancing retirement security for millions of Americans.  H.R. 4 makes permanent the retirement savings provisions that were part of the Economic Growth and Tax Relief Reconciliation Act of 2001.  These provisions include the Saver’s Credit, expanded contribution limits for IRAs and other 401(k) plans and increased saving opportunities for men and women in combat and other public safety employees.

            “Modifications to defined contribution laws will encourage greater personal savings for retirement and other needs,” said Lewis.

The bill also suspends tariffs on many imported materials used by small U.S. manufacturers use to make their products.  These lower costs for manufacturers will result in lower prices for American consumers.

The Conference Report on H.R. 4 now moves to the Senate where it will be consider by that body before it can be sent to the President to be signed into law.

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