Retirement Protection Act of 1994

legislation designed to protect the pension benefits of American workers and retirees by increasing funding of underfunded pension plans and strengthening the pension insurance program administered by the pension benefit guaranty corporation (PBGC). Reinforcing the special requirement known as the Deficit Reduction Contribution (DRC) to fund underfunded pension plans, the act required severely underfunded plans to have enough cash and marketable securities to cover current benefit payments. The law also increased PBGC premiums for pension plans posing the greatest liquidation risk. It also required employers whose plans are less than 90% funded to provide a notice to their employees in simple language on the plan’s funding and the limits of PBGC guarantees. The act also created the “Pension Search Program” which locates people who are owed benefits from fully funded, PBGCinsured defined benefit plans that terminate.
See also pension benefit guaranty corporation (PBGC).

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