Articles: New Law Includes Pension Law Changes
Congress was able to agree on one significant “retirement planning” law prior to the November election.
The “Moving Ahead for Progress in the 21st Century Act” (MAP-21), which addresses funding for highway construction, contains provisions designed to improve funding of “defined benefit” retirement plans like traditional pension plans. But it also bumps up the premiums that sponsors must pay to the Pension Benefit Guaranty Corporation (PBGC). The PBGC generally protects defined benefit plan participants.
Furthermore, MAP-21 extends the interest rate of 3.4% on college student loans for one year, through July 1, 2013. Without the new law, the rate would have dou- bled to 6.8%
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