NOW:53217:USA01012
http://widgets.journalinteractive.com/cache/JIResponseCacher.ashx?duration=5&url=http%3A%2F%2Fdata.wp.myweather.net%2FeWxII%2F%3Fdata%3D*USA01012
32°
H 34° L 32°
Cloudy | 10MPH

Petri Bill Would Correct Pension Inequity

Feb. 7, 2013

Washington, D.C.—Today, U.S. Representative Tom Petri (R-WI), a senior member of the House Committee on Education and the Workforce, introduced bipartisan legislation to correct an inequity in the way survivor benefits are provided by the Pension Benefit Guaranty Corporation.

The Pension Benefit Guaranty Corporation (PBGC) is a federal agency that provides pension fund insurance to ensure that a business's defined benefit pension obligations will be met, even if the company is in financial distress and has to end an underfunded plan. The PBGC covers both single employer plans and multiemployer plans.

In single employer plans, if a covered employee dies prior to retirement, that employee's spouse will receive an annuity, known as a pre-retirement survivor annuity. However, in multiemployer plans, the surviving spouse will only receive this annuity if his or her spouse dies before the PBGC has taken over the plan. If a covered employee dies after the PBGC takes over the employer's pension plan, that employee's spouse will not receive an annuity.

"It's a legal inconsistency, and it isn't fair to those who happen to be in multiemployer plans," said Petri. "There is no reason why the widow or widower of a hardworking employee should be denied an annuity simply because his or her spouse did not die before the plan was turned over to the PBGC.

"Spouses have an expectation of receiving survivor benefits as promised by the employer. We should correct this error—which appears to be inadvertent—so that widows and widowers can receive the benefits they deserve."

Congressman Petri introduced this bill (H.R. 566) with Rep. Rob Andrews (D-NJ), who is the ranking member of the Subcommittee on Health, Employment, Labor, and Pensions. Reps. Petri and Andrews also introduced a similar bill—H.R. 5981—in the 112th Congress.

This site uses Facebook comments to make it easier for you to contribute. If you see a comment you would like to flag for spam or abuse, click the "x" in the upper right of it. By posting, you agree to our Terms of Use.

Suburban News Roundup

E-mail Newsletter

Your link to the biggest stories in the suburbs delivered Thursday mornings.


Enter your e-mail address above and click "Sign Up Now!" to begin receiving your e-mail newsletter
Get the Newsletter!

Login or Register to manage all your newsletter preferences.

Community Watch

» Westbound I-94 near Miller Park to close for 31 hours beginning Friday night 12/18

» Carran rejects Lisbon job offer; Brown Deer's Janecke accepts 12/18

» Crews clear 2 crashes that closed northbound I-43 Updated:  12/18

» Homestead boys shutout Nicolet in third quarter in 65-30 rout 12/17

» Wolf comes home as Homestead girls hoops team beat Nicolet, 51-41 12/16

» Flu hits hard at Glendale-River Hills School District 12/16

» Man sentenced to prison in optical store fatal shooting Updated:  12/16

» Mequon-Thiensville residents will vote on $18.2 million referendum proposal 12/16

» I-43 reconstruction project approved by feds 12/15

» Shorewood apartments project seeks $5.5 million in village financing Updated:  12/15

» Eisenhower girls beat Shorewood, 50-32 12/12

» River Hills woman killed in driveway accident Updated:  12/12

» Cable firm opening Glendale headquarters 12/5

» Sushi restaurants to open on North Shore: Ginza in Bayside-Fox Point, Kawa in Glendale 12/4

» Mequon lawyer indicted on 33 counts related to fraud, money laundering Updated:  12/3

» Glendale dad gets 41 years for shooting sons during driveway argument Updated:  12/2

» Whitefish Bay appoints village manager 12/2

» Shorewood police chief to retire after 33 years 12/1

» Brown Deer boys hoops team falls to inspired King, 68-52, in opener 11/28

» Wisconsin native killed in robbery attempt on California hiking trail 11/28

» Nicolet tennis court project receives rezoning approval from River Hills 11/21

» The Cheel offers a taste of Nepal in Thiensville 11/21

» Paper will be delayed by holiday 11/19

» Candidates for Lisbon post named 11/18

» Mequon teen ODs on alcohol after chugging gin with Cedarburg girls 11/18

View All Posts Got a tip? Welcome rss

Advertisement


Advertisement

Local Business Directory

CONNECT