New legislation introduced by Sen. Judd Gregg, would give U.S. companies $30.5 billion in relief from pension burdens over three years. The bill would let companies assume a higher rate of return on their pension contributions, based on high-grade corporate bonds, lowering the payments firms must make to meet pension obligations. The 30-year Treasury bond used to serve as the basis for calculating obligations, but the government has stopped issuing new 30-year bonds. The Senate Finance Committee has approved an approach that gives companies $60 billion in relief over three years, but then mandates a transition to tougher pension funding requirements, and Gregg has said he would work with the committee to produce a unified Senate proposal.
See "Senate panel OKs pension relief", Tribune news services, Chicago Tribune, October 29, 2003