Retirement Reform Legislation Moving Closer to Passage

A House-Senate conference committee is likely to be held soon to try to iron out differences between versions of pension plan reforms passed by both houses. Although much of the controversy focuses around funding of defined benefit plans, the bills also contain similar provisions providing greater diversification rights for employees holding employer stock in public company 401(k) plans and KSOPs. One version also shortens the vesting period for plans to six years. Prospects for agreement are still uncertain, however, and the Administration has expressed strong concern that the pension funding changes are inadequate.