Pension Changes Could Limit Retiree Income

Two weeks ago the Treasury released proposed and temporary regulations in support of the Kline-Miller Reform Act. This could amount to be a huge blow to retirees who are counting on pension benefits to fund their retirement. These regulations allow for: – Reduction of benefits for current retirees – Increased Sponsor and participant contributions – Reducing early retirement subsidies The most glaring impact may be the ability of plans facing insolvency the right to immediately reduce benefits to no less than 110% of the PBGC guarantee, the maximum is currently $13,000 per year.