Pension Action E-Newsletter

January 10, 2007

Happy New Year!

Name Changes for Pension Committee in Congress
The names of several congressional committees on Capitol Hill changed last week as Members were being sworn in for the 110th Congress. The Committee on Education and the Workforce is now known as the House Committee on Education and Labor, which was the committee’s name before Republicans assumed control of Congress in 1995. This Washington Post article describes the history behind the name change: New Faces in House, Old Names for Panels.

Plans Now Required to Issue Periodic Benefit Statements
The Pension Protection Act of 2006 requires plans to provide periodic benefit statements to participants. This is a change from the previous requirement that benefit statements were only available if participants submitted a written request to the plan. Among other information, the new benefit statements include information on the total benefits earned under the plan, the vested benefit and an explanation of whether Social Security or other payments will be subtracted from the final benefit calculation. Read this PRC summary for a more detailed explanation of the PPA provision.

Since the new rules go into effect this year and final regulations have not been issued, the Department of Labor has issued a Field Assistance Bulletin to provide employers with temporary guidance on what to include in benefit statements for plan participants. The Field Assistance Bulletin says that defined benefit plans must issue benefit statements in the 2009 plan year. Participants in defined contribution plans can expect to receive benefits statements either quarterly or annually, depending on the amount of investment control the participant has over the account.

Thank You for Your Support
Your support of the Pension Rights Center in the last few weeks has been tremendous. We have received an unprecedented number of online donations since we included a link to the PRC’s Support Us page in the last edition of our Pension Action e-newsletter. Your support helps the Center continue its vital role as the only consumer organization committed solely to protecting and promoting retirement security for American workers, retirees, and their families.

Other Articles of Interest
Please note that some news web sites require free registration to read an entire article, and some links may expire within several days after the article's publication date. You can find other recent articles in the Pension in the News and PRC in the News sections of our web site.