Dear ______:
The Senate Finance Committee is currently considering various reforms to our pension laws. In connection with the Committee=s review of those laws, the Committee requests the following information with respect to all single-employer defined benefit pension plans sponsored by your company and any affiliated companies.
1. Please provide the following information for each of the plan years 1999 B 2004 (inclusive) for all plans with 1,000 or more participants:
a. The plan's current liability (RPA =94) and the interest rate used to determine the liability.
b. The market value of assets and the actuarial value of assets.
c. The plan's unfunded current liability.
d. Minimum contribution required for the year before reduction for any credit balance.
e. The additional funding charge, if any, included in d.
f. The amount of cash contribution for the year.
g. The amount of credit balance used for the year.
h. The amount of credit balance as of the end of the year.
i. The plan's investments held at the end of the year.
j. Whether the plan paid a variable rate premium to the PBGC and if so, how much.
k. Whether the plan was required to provide a notice to participants pursuant to section 4011 of ERISA for that year.
l. Whether the plan made a transfer pursuant to section 420 of the Internal Revenue Code.
m. Whether an amendment increasing benefits became effective during the year and if so, the increase in current liability resulting from the amendment. Also the amount of any amortization base established as a result of the amendment.
n. The net rate of return on assets during the year.
o. The pre- and post-retirement rates of investment return for the actuarial liability calculation.
p. Assumed rates of retirement.
q. If there was a related SERP, the number of participants accruing benefits under the SERP for the year and the amount transferred to a trust or any other arrangement (including insurance premiums)
to fund the SERP.
2. Please also provide the following general information about the plan.
a. Does the plan provide for payment of unreduced accrued benefits before normal retirement age? If so, at what age and service combination?
b. Does the plan provide for shutdown benefits? If so, please describe the benefit and any age or service requirements.
c. Does the plan provide lump sums? If so, what interest rate (if any other than the interest rate required by section 417(e) of the Code) does the plan uses to determine the lump sum.
d. Has the plan frozen participation or accruals? If so, when? Describe any new plan or contribution enhancements to an existing plan that were intended to replace frozen benefits.
e. Has the plan been converted to a hybrid plan and, if so, what transition rules applied?
3. Please describe any nonqualified deferred compensation arrangements maintained for key persons and the amount transferred to a rabbi trust or other arrangement to fund these benefits for each of the years 1999 through 2004.
We request that you provide us with this information by July 1, 2005.
Sincerely,
Charles E. Grassley
Chairman
Max Baucus Ranking Member
Source: Ranking Member’s News
