Pension Reform Bill Still in Conference

Despite repeated promises that an agreement would soon be reached, the conference committee considering pension reform has still been unable to find common ground. House Majority Leader John Boehner now is promising a report by the end of June, although that still leaves no guaranty the bill will pass or the President will sign it (he has threatened a veto, although that would be his first). While the bill's main focus is defined benefit plans, it has considerable interest to the employee ownership community as well. Among other things, it would shorten vesting schedules on ERISA plans from the current maximum five-year cliff or seven-year graded schedules to three years and six years, make permanent the increased contribution limits passed in 2001 (and set to expire in 2010), and provide for required diversification of employer stock in public company 401(k) plans or KSOPs. Some observers now say there is a chance the bill will not be passed this Congress.