Sponsors of defined benefit pension plans will be able to use excess money in their plans to fund the purchase of life insurance for their retirees for the first time under a provision of legislation passed by Congress Friday.

The provision was among a number of defined benefit plan issues addressed as part of H.R. 4348, the Surface Transportation Extension Act of 2012.

The bill was passed by the House and Senate within minutes of each other. Besides extending the highway construction program until Sept. 2014, the bill also reauthorized the National Flood Insurance Program until 2017 and ensured that the rates on student loans remained the same until next July.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.