Pension Security and Transparency Act of 2005

Summary

Pension Security and Transparency Act of 2005 - Amends the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC) to establish new minimum funding standards for single-employer and multiemployer defined benefit pension plans. Limits benefits under underfunded plans. Establishes additional funding rules for multiemployer plans in endangered or critical status. Requires measures to forestall insolvency. Revises deduction limits for such plans. Revises deduction rules for combinations of defined contribution plans and defined benefit plans. Sets forth interest rate assumptions for determining lump sum distributions and for applying benefit limitations to such distributions. Increases certain premiums to be paid to the Pension Benefit Guaranty Corporation (PBGC). Provides for phasing-in increases of: (1) the annual flat-rate premium paid by all single-employer plans; and (2) the additional risk-based premium, which is to be paid by all underfunded plans. Limits PBGC guarantee of shutdown benefits and other unpredictable contingent event benefits under single employer plans. Revises requirements for defined benefit plan funding notices. Requires additional disclosures in annual reports and to plan participants and beneficiaries. Provides that defined benefit pension plans, including hybrid plans such as cash balance plans, may be deemed nondiscriminatory as to age if they comply with certain requirements, in cases of reduction in accrued benefits because of attainment of any age. Requires defined contribution plans to allow employees to divest employer stock and diversify their pension asset investments. Provides that defined benefit pension plans, including hybrid plans such as cash balance plans, may be deemed nondiscriminatory as to age if they comply with certain requirements, in cases of reduction in accrued benefits because of attainment of any age. Sets forth participant protections, including diversification rights, under defined contribution plans. Revises requirements relating to: (1) portability and distribution rules; (2) information, including investment advice and retirement planning, to assist pension plan participants; (3) spousal pension protection under ERISA and the Railroad Retirement Act of 1974; (4) employee plans compliance resolution systems; (5) governmental and tribal pension plans; (6) black lung disability trust funds; (7) treatment of death benefits from corporate-owned life insurance; and (8) compensation and pensions of Tax Court judges.

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Documents

8 official files

• Public Print (text)

  Public Print · EN · 22 December 2005

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• Public Print (PDF)

  Public Print · EN · 22 December 2005

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• Engrossed in Senate (text)

  Engrossed in Senate · EN · 16 November 2005

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• Engrossed in Senate (PDF)

  Engrossed in Senate · EN · 16 November 2005

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• Passed Senate amended

  summary · EN · 16 November 2005

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• Placed on Calendar Senate (text)

  Placed on Calendar Senate · EN · 28 September 2005

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• Placed on Calendar Senate (PDF)

  Placed on Calendar Senate · EN · 28 September 2005

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• Introduced in Senate

  summary · EN · 28 September 2005

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