Pension Funding Reform: It's Time to Get the Rules Right (Part 2)

Posted: 27 Aug 2005


The author addresses the issue of pension funding reforms in two separate articles. Part one previously explained ERISA's historical funding and plan termination rules in order to show why plan sponsors, such as United Airlines' parent UAL Corporation, were permitted to create and maintain unfunded pension plans and why the Pension Benefit Guaranty Corporation assumed some of those unfunded liabilities.

Part two discusses the need for reform in ERISA's funding and plan termination rules. This article will examine various legislative and industry proposals and the policy considerations relevant to such proposals, in light of historical mistakes that should be avoided with subsequent legislation. The article's conclusion makes recommendations in support of preserving the defined benefit system.

Suggested Citation

Kennedy, Kathryn J., Pension Funding Reform: It's Time to Get the Rules Right (Part 2). Tax Notes, Vol. 108, No. 10, August 29, 2005, Available at SSRN:

Kathryn J. Kennedy (Contact Author)

John Marshall Law School ( email )

315 South Plymouth Court
Chicago, IL 60604
United States
312-427-2737 ext. 515 (Phone)

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