Human Resources
Funding Stabilization and PBGC Premium Increases White Paper | Aon

Funding Stabilization and PBGC Premium Increases—Strategic Implications for Pension Plan Sponsors


Loading

October 2012

Aon Hewitt Investment Consulting previously published two white papers on the recent pension funding stabilization legislation. The first, which was published almost immediately after the bill was passed, focused on the regulatory aspects of the changes. The second, published a few weeks later, focused on the implications for pension risk management. With new guidance from the IRS on the law, this piece updates and combines the two prior pieces.

On June 29, 2012, the House and Senate passed H.R. 4348, the Moving Ahead for Progress in the 21st Century Act (MAP-21) (P.L. 112-141), which includes both pension funding stabilization provisions and PBGC premium increases. The President signed MAP-21 into law on July 6, 2012. On August 16, 2012, the IRS issued guidance on the MAP-21 interest rates to be used in 2012 valuations.

This report provides an overview of MAP-21’s pension-related provisions, an analysis of how they will impact plan sponsors and participants, and a discussion of the strategic implications for pension plan funding and investment policies.

Download Funding Stabilization and PBGC Premium Increases—Strategic Implications for Pension Plan Sponsors