Wednesday, April 09, 2014

President Signs Bill Granting Pension Funding Flexibility To Charities

On Monday, the President signed into law HR 4275,  the Cooperative and Small Employer Charity Pension Flexibility Act. Rep. Susan Brooks, sponsor of the bill, described it as follows after the House passed the legislation:
The legislation ensures that charitable and cooperative associations are not swept into the Pension Protection Act of 2006 (PPA) funding rules, which require them to fund their pension plans at levels commonly associated with high risk plans. These groups received a temporary exemption from the rules in 2006 which is set to expire in 2017. H.R. 4275 makes the exemption permanent.