Market crisis could force pension benefit freeze

More than 300 companies are asking Congress to suspend some provisions of the federal Pension Protection Act to give them time to cope with the effects of the global financial crisis on pension funding. As a result of plummeting asset values, the funding of U.S. pensions, 100% in January, is expected to fall to 76% by year's end, an event that could force the freezing of pensions and 50% cuts in lump-sum distributions. Read the letter signed by the AICPA and more than 300 other organizations.

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