GATT interest rate - change in basis

[Guest Mike Spickard]

A few months ago, I thought I had heard that someone in Congress was going to introduce a provision to establish a modified "GATT" interest-rate basis, since the 30-year treasuries are no longer sold and the "pseudo" 30-year treasury rate has fallen so low.

However, I cannot seem to find out if this is going anywhere soon. Has anyone heard of any recent developments on this?

Many thanks.

[MGB]

Within the next couple of weeks, representatives Portman and Cardin will be introducing (once again) a large pension bill that will include a permanent change to the 30-year Treasury rate references in the law.

However, there are huge obstacles to getting change. Participant groups (AARP, Pension Rights Center, etc.) will fight against it because of the effect on lump sums. The PBGC will fight against it because of the effect on premiums and minimum funding requirements.

At best, we may only get an extension of the 120% temporary funding calculation this year unless moods change.

Organizations such as ERIC, ABC, ASPA, AAA and others continue to aggressively work with the PBGC, IRS, and Congress to move this issue forward.