Whats the government doing to address the problem of corporations underfunding their pension trust funds?
In August 2006 President Bush signed the Pension Protection Act of 2006. The law requires companies to fully fund their pensions over several years and increases the premiums corporations pay to the federal pension insurer. However, the proposed legislation doesn’t prevent companies from freezing lifetime pensions, and it contains several provisions that might actually encourage companies to swtich to 401(k)s.
