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
59°
H 61° L 57°
Foggy | 0MPH

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

» Stewart rushes for 315 yards as Messwood overpowers Nicolet 8/28

» Get interesting prep football tidbits and insights with 'First and Short' blog 8/28

» Updated weekly rankings of area prep football teams and players 8/27

» Menomonee Falls volleyball team opens season with win over Nicolet 8/26

» Crews clear Mequon traffic incident that created big northbound I-43 delays Updated:  8/26

» Homestead ACT scores top North Shore 8/26

» Medical office building planned for Mequon 8/26

» Shorewood school budget nearly derailed over public comment policy change 8/26

» Homestead football team learns lessons in loss to Arrowhead 8/26

» Sport Shorts: Aug. 27, 2015 8/26

» Exquisite Threading weaves philanthropy into business growth 8/26

» Homestead's new field to be ready for play on Friday 8/26

» Glendale Little League team wins state title 8/26

» North Shore area swim teams will have a different look this winter 8/26

» Initial Reaction Podcast: What stood out on the first week of high-school football? 8/25

» West Nile virus reported in North Shore 8/24

» Run DMC rapper Darryl McDaniels launches Clicks sneaker shop in Shorewood 8/24

» Newsweek: Whitefish Bay best Wisconsin school; 30th in nation 8/21

» Arrowhead overpowers Homestead, 28-14, in football opener 8/20

» The 2015 Suburban Milwaukee Prep Football Guide 8/19

» Get to know: Messmer/Shorewood Greyhounds 8/19

» Nicolet football program energized as varsity returns 8/19

» Still there in spirit, Whitefish Bay's Jim Tietjen battles brain cancer 8/19

» Get to know: Homestead Highlanders 8/19

» North Shore golfers get underway at Pius meet 8/19

View All Posts Got a tip? Welcome rss

Advertisement

Advertisement

Local Business Directory

CONNECT    

Advertisement