The Senate, with less than a day remaining before its members went their separate ways for the rest of August, passed its version of the Pension Protection Act. The vote sends the legislation to the White House for President George Bush's signature.

The bill passed the Senate late Thursday night on a 93 to 5 vote. Three Republicans and two Democrats voted against the bill. Two Democrats -- Lieberman and Baucus -- did not cast a vote.

Senate Majority Leader Bill Frist (R. Tennessee) shepherded the bill to a vote after Rupublican's earlier attempts to vote on an estate tax bill and minimum wage bill failed. Frist had wanted all three measures to pass together.

"After seven years of hard work to modernize our outdated pension laws, I'm pleased our work will finally pay dividends for workers who are counting on their pension benefits in their retirement," said House Majority Leader John Boehner (R. Ohio).

It is expected that Bush will sign the bill shortly. Earlier this year he had warned that he would veto the bill if it weakened existing laws. However, both leaders in the House and the Senate said they believe the legislation will pass muster with the White House.

The final bill, which is identical to the H.R. 4 bill passed by the House, runs 907 pages and covers a broad spectrum of retirement issues, including defined benefit plan funding and cash balance plan rules. On the 401(k) front it will extend EGTRRA provisions, loosen the restrictions on plan providers offering their own investment advice products and clarify the ability of plan sponsors to offer auto enrollment and default funds. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE