Worker, Retiree and Employer Recovery Act of 2008 Signed into Law

On December 23, President Bush signed the Worker, Retiree and Employer Recovery Act of 2008 into law. The measure is designed to relieve certain funding requirements for company plans and loosens rules tightened in 2006. Under the 2006 law, the employers accelerated plan contributions if funding targets were missed.

Currently, employers put enough money in their plans each year so they will be completely funded after seven years. In 2008, plans have to fund toward a 92 percent target; 94 percent in 2009; 96 percent in 2010; and 100 percent in 2011. If any targets are missed, employers are required to fund toward the 100 percent target. The new law removes that requirement.

On December 23, President Bush signed the Worker, Retiree and Employer Recovery Act of 2008 into law. The measure is designed to relieve certain funding requirements for company plans and loosens rules tightened in 2006. Under the 2006 law, the employers accelerated plan contributions if funding targets were missed.

Currently, employers put enough money in their plans each year so they will be completely funded after seven years. In 2008, plans have to fund toward a 92 percent target; 94 percent in 2009; 96 percent in 2010; and 100 percent in 2011. If any targets are missed, employers are required to fund toward the 100 percent target. The new law removes that requirement.

Leave a reply