United States · Amendment · HAMDT

HAMDT 131 (108th)

An amendment in the nature of a substitute that requires executive pensions to be subject to the same pension rules that apply to other workers. Changes provisions that allow special executive pension plans to escape taxation, to receive special protection against creditors, and to end-run pension laws that require wide employee participation at the company. Requires that executive plans be subject to the same uniform and fair vesting and contribution limits that apply to rank-and-file employees. Requires companies changing from traditional pension plans to cash balance plans to allow older workers the choice of remaining in the old plan or joining the new plan. Requires executive compensation packages including pensions to be approved by the board of directors. Gives employees greater protections when a company declares bankruptcy, and denies executives preferential protection against creditors. Imposes an excise tax on executive golden parachutes.

Taxation