Near-Term Impact of MAP-21 on Defined Benefit Plans

Posted on 09.12.12

The purpose of the Moving Ahead for Progress in the 21st Century Act (“MAP-21”) enacted July 6th was to authorize funds for Federal Highways, highway safety program, and transit programs, and for other purposes. “Other purposes” include pension funding stabilization, PGBC premiums, and transfers of excess pension assets. These new laws will ultimately reduce tax deductible contributions, as well as raise revenue by increasing corporate taxes and PBGC premiums. MAP-21 is effective for plan years beginning on or after January 1, 2012. Near-Term Impact of MAP-21 on Defined Benefit Plans