The Senate on April 8, 2004, passed the Pension Funding Equity Act (H.R. 3108) by a vote of 78 to 19. The legislation is designed to provide a temporary replacement for pension liability calculation based on 30-year Treasury bonds. Pension providers would be able for at least the next two years to calculate liability based on average corporate bond rates. The agreement also includes some pension funding relief for the airline and steel industries and certain multiemployer plans.
The legislation now moves to the President for his expected signature prior to April 15, 2004, an important date in terms of the calculation of pension funding obligations.