Search
 

Senate Passes Bill to Replace 30-Year Treasury Bond Rate Formula for Pension Plan Compute

MADISON, Wis. - At press time, President Bush was expected to sign legislation that proponents say could potentially provide an estimated $80 million in relief to U.S. companies, including credit unions, which have defined pension programs for their employees. The bill, passed April 8 by the Senate, aims to replace...

By Staff Writer | Updated on April 20, 2004

MADISON, Wis. – At press time, President Bush was expected to sign legislation that proponents say could potentially provide an estimated $80 million in relief to U.S. companies, including credit unions, which have defined pension programs for their employees. The bill, passed April 8 by the Senate, aims to replace the current 30-year Treasury bond interest rate used by employers to determine how much they should set aside to fund employee pensions plans. A new formula, based on more conservative, corporate bond rates, would allow businesses to make smaller contributions under the old formula. CUNA Mutual Group, which has supported the bill, reports that an estimated 20-30% of the nation’s credit unions have defined benefit pension plans and stand to be favorably impacted by the legislation.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.