SEG to Monitor Developments in Pension Reform
On June 9, 2005, the Pension Protection Act (H.R. 2830) was formally introduced in the House as a means toward enhancing pension reform. On June 22, the legislation was passed by the House Education and Workforce Subcommittee on Pension & Retirement Security for U.S. Workers. This bill also included a comprehensive investment advice proposal that allows employers to provide certain employees with access to professional investment advice as an employee benefit.
The professional staff of The Bond Market Association's Washington D.C. office will continue to report on important developments. Likewise, the Senior Executives Group of AMF will consider how this legislation might affect asset managers that manage pension/ERISA accounts for the ultimate investor.
Next Wednesday, June 29, the bill moves to the full Education and the Workforce Committee for consideration. It is expected that clarifications on prohibited transaction rules (including the potential opportunity for asset managers to cross trades between pension accounts) may possibly be considered on this date.
If you have any questions regarding this matter, please contact staff members Jill Hershey of The Bond Market Association's Washington D.C. office at 202.434.8400 or Joseph Sack of The Bond Market Association's New York office at 646.637.9200.
Click here to read a summary of H.R. 2830
Click here to read a Press Release
GSE Reform for Consideration by Senate Banking Committee
In an article posted on the Web site of the Senate Banking Committee, Chairman Richard Shelby (R - AL) indicated that he would propose his own legislation that would lead to tougher regulation of Government Sponsored Enterprises.
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In April of 2005, the Senate Banking Committee heard testimony on regulatory reform of the Government-Sponsored Enterprises from Federal Reserve Chairman Alan Greenspan, U.S. Treasury Secretary John Snow and Secretary Alphonso Jackson of the U.S. Department of Housing and Urban Development.
This issue relates to items that were discussed at the SEG Washington D.C. Conference. At the conference, decision-makers on Capitol Hill explained that GSE reform was a top priority for the current administration. The SEG agreed to monitor relevant developments in this arena.