Benefits Group Finds Fault With Bush Pension Proposal
Dow Jones Newswire (07/08/03) ; Dooren, Jennifer Corbett

The American Benefits Council is concerned about a Bush administration proposal that would help fund pensions by replacing the defunct 30-year Treasury bond with high-yield corporate bond rates to determine a company's pension liabilities. The plan would take five years to complete and would let companies use a mix of corporate bond rates before converting completely to a corporate bond yield curve and employee ages. Council President James Klein argues that the plan would bring volatility and complexity and raises too many questions, while his organization favors the Portman-Cardin proposal that would replace the 30-year bond with a corporate bond rate without using a yield curve.

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