The ERISA Industry Committee has taken issue with a recent Washington Post editorial that slammed "pension smoothing."
The piece calling out Congress for using an "egregious budgetary gimmick" to fund the recently passed Highway and Transportation Funding Act of 2014.
More than half of the $10.8 billion earmarked for infrastructure projects will be financed by pension smoothing, according to the Post. By lowering funding obligations to their defined benefit plans, Congress was able to increase plan sponsors' tax liabilities, providing the revenue to fund the bill.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
