WASHINGTON, Dec. 23 (UPI) -- President George Bush signed legislation Tuesday that allows U.S. corporations to put off funding pension plans.
The bill also allows older people to delay withdrawals from their Individual Retirement Accounts during 2009. Under current law, those who have turned 70 ½ must begin making regular withdrawals or face 50 percent penalties, a requirement suspended for a year.
Congress passed the Worker Retiree and Employee Recovery Act of 2008 at the end of the session. Bush spokesman Tony Fratto said that the administration was dubious about allowing companies to defer pension funding.
"Those of you who may have followed this issue know that we did have some concerns with this bill because we think it will increase the cost of near-term claims on the Pension Benefit Guaranty Corporation -- the PBGC -- and could also result in some benefits lost to workers over the long term," Fratto said. "Our concerns with the legislation remain, but we do believe that in this current economic environment and current economic circumstances, that the benefits of the legislation outweighed our objections."
