“A new law will let companies contribute billions of dollars less to their workers’ pension funds,” reports the Associated Press, “raising concerns about weakening the plans that millions of Americans count on for retirement.” However, with many companies already freezing or getting rid of their pension plans altogether, critics expect the changes — passed by Congress in June and signed into law late last week by President Obama — to have little impact on the country’s $1.9 trillion in estimated pension fund assets. “And it is more important, they suggest, to avoid giving employers a new reason to limit or jettison remaining pension benefits by forcing them to contribute more than they say they can manage,” concludes the AP.
Giving U.S. companies a break on pensions
A new law will allow companies to contribute less to workers’ pension funds, though it is expected to have little impact on $1.9 trillion in estimated pension fund assets.
July 10, 2012