Two different issues that will both affect employee benefits are currently being mulled over by the legislature and committees.

First on the pension reform front, the full U.S. Senate was expected to vote on pension rule changes that would affect every employer with a defined benefit plan. But this bill is delayed indefinitely because of negotiations of suggested amendments.

Although the current bill classifies a pension plan as "at risk" based on the company credit rating, an amendment has been presented to the Senate to change the measure "at-risk" to be if it below 60% funded.  The amendment proposed by Senators Mike DeWine (R-Ohio) and Barbara Mikulski (D-Md.) also proposes to increase the smoothing of pension assets and interest rates to three years from the one year limit in the current bill. I am in agreement with these recommendations.

Before the final vote, the Senate is considering other amendments to the bill, including proposals on automatic enrollment and contribution increases in defined contribution plans, additional funding changes for airlines, increases in PBGC premiums, updating fiduciary rules relating to prohibited transaction exemptions and further changes to the multi-employer rules.

Secondly, the President´s Advisory Panel on Tax reform is considering implementing a tax to employees on the value of their employer-sponsored health coverage. The panel, consisting of former members of Congress, government officials, executives and academics is set to present their report to the Treasury Department by November 1 on how to simplify the tax code and keep revenues unreduced. Apparently they are considering reducing the Alternative minimum tax and financing it through revenues derived from taxing health coverage.

At a time of rapidly increasing health costs, with both employers and employees struggling to keep and pay for these benefits, it would be inexcusable, in my opinion for the government to now end the tax break on health benefits.