|
|
Article: Pension community pushes 30-year Treasury rate replacement.
- Article from:
- Employee Benefit News
- Article date:
- November 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
When the federal government decided one year ago that it no longer needed to sell 30-year Treasury bonds, it pulled the rug out from under pension plan sponsors that are required to use this long-term benchmark interest rate to calculate current plan liabilities. Now sponsor representatives are calling lawmakers on the carpet.
Interest rates on 30-year Treasury bonds have fallen to historic lows since the government's decision, and this is seriously inflating plan liability calculations that hinge on the rate as a benchmark for long-term investment performance assumptions.
The ERISA Industry Committee (ERIC) is currently lobbying administration officials ...