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HEHS-96-54R 1 (1995-10-24)

handle is hein.gao/gaobackzd0001 and id is 1 raw text is: 


AO           United States
             General Accounting Office
             Washington, D.C. 20548

             Health, Education, and
             Human Services Division


             B-270216

             October 24, 1995

             The Honorable Gerald D. Kleczka
             House of Representatives

             Dear Mr. Kleczka:

             Companies that sponsor defined benefit pension plans have set
             aside over $900 billion to pay promised benefits. These
             companies are not allowed to withdraw any of these funds except
             in special circumstances, such as paying for their retirees'
             health liabilities. The House of Representatives, however,
             plans to consider a provision in the upcoming budget
             reconciliation legislation that would allow companies to
             transfer excess assets out of defined benefit pension plans
             they sponsor for any use.
             You asked us to provide you with information on pension funding
             and other issues related to the transfer of assets that would
             assist you in analyzing this provision. The enclosed
             information responds to specific questions you raised. The
             information provided is based on reports and testimonies we
             have issued and on information we have gathered from other
             sources.

             This correspondence was prepared under the direction of Donald
             C. Snyder, Assistant Director, Income Security Issues, who may
             be reached at 202-512-7204 if you or your staff have any
             questions. Michael D. Packard, Kenneth J. Bombara, Kenneth C.
             Stockbridge, Susan A. Poling, and Roger J. Thomas also
             contributed to this correspondence.

             Sincerely yours,


             Jane L. Ross
             Director, Income Security Issues

             Enclosure


GAO/HEHS-96-54R Proposed Pension Reversion

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