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Single Employer Pension Funding Relief Introduced in the House of Representatives

House Ways and Means Committee Chairman Richard Neal has introduced HR 409, the Emergency Pension Plan Relief Act of 2021 (EPPRA). Part of that bill would make significant changes to minimum funding requirements for sponsors of single employer defined benefit plans for plan years after December 31, 2019.

At least some of the changes proposed have been seen in prior legislative proposals but removed prior to enactment. In the case of the EPPRA, the two significant changes are modification of the segment rates used to determine funding requirements (but not PBGC premiums), and a change in amortization of funding shortfalls from 7 years to 15 years.

Read the Legislative Update.

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