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June 13, 2005

Pension Actuaries Encouraged by Reform Bill

The Pension Practice Council of the American Academy of Actuaries is encouraged by the introduction of new legislation to reform the private pension system. The Pension Protection Act of 2005, a bill introduced by U.S. Rep. John Boehner (R-OH), chairman of the House Education and the Workforce Committee, House Ways and Means Committee Chairman William M. Thomas (R-CA), and Rep. Sam Johnson (R-TX), chairman of the Employer-Employee Relations Subcommittee and others, was filed this week
to change the pension laws.

"The bill is responsive in addressing some of our concerns with the administration proposal by increasing flexibility to achieve the long-term goals of pension solvency," said Kenneth A. Kent, vice president of the council. "The Academy looks forward to the legislative hearings and we are encouraged that with this effort subsequent improved pension funding rules would provide a sound framework for maintaining the defined benefit system as a fundamental component of our nation's retirement security," Kent said.

The Academy has been calling for pension reform for some time and has testified on Capitol Hill in the last several months about the subject. In February, the Academy Pension Practice Council produced an issue analysis, Pension Funding Reform for Single Employer Plans. To view the analysis, visit http://www.actuary.org/pdf/pension/funding_single.pdf

The American Academy of Actuaries is the nonpartisan public policy organization for the U.S. actuarial profession. The Academy provides independent analysis to elected officials and regulators, maintains professional standards for all actuaries, and communicates the value of actuarial work to the media and public.

SOURCE American Academy of Actuaries

Web Site: http://www.actuary.org

Posted by Tom Troceen