WASHINGTON – Changes in federal law are on the way that will provide about $80 billion in relief in the form of lower contributions for all U.S. pension plans – except multi-employer plans mostly used by the U.S. construction industry.

Over the objections of many Democrats, the bill was adopted in both chambers of the Republican-controlled Congress, and President Bush is expected to sign it. The Democratic leader of the committee with jurisdiction over the measure, Sen. Edward Kennedy, called it an “unfair and spiteful” bill that “President Bush should be embarrassed to sign.”

Most U.S. pension plans have been hit hard by the lousy stock market over the last few years. According to the Washington Post, a key element of the bill is a change in the way pension plans must compute their liabilities.

The relief is provided to pension plans in the form of changing the way liabilities are calculated, and through the use of a more favorable interest rate used to calculate funding liabilities.

However, building trades unions and their employers were treated worse by the bill. The bill would allow only about 1 percent of multi-employer plans to put off, for two years, increased contributions required to make up for stock market losses in 2002. But in the third year, they would be required to make up those foregone contributions with a lump sum payment.

Democrats sought to allow about 20 percent of multi-employer plans to put off the increased contributions – with hopes that construction activity and the stock market will improve – but the Bush Administration indicated it would not sign a bill that helps multi-employer plans. His reasons were not clear at press time.

House Education and Workforce Committee Chairman John A. Boehner (R-Ohio) said in a written statement after the Senate vote that the measure “represents a responsible, short-term approach to the under-funding problems that are putting worker retirement benefits at risk.”

In the short-term, since multi-employer plans were not included in the relief package, many employers will be forced to come up with millions of dollars on April 15 to fund their pensions. Long-term, there’s sure to be more trouble for multi-employer plans.

Kennedy and other Democrats accused the White House of having an antiunion bias. “These are the workers you see on the top of the buildings … the workers you see working in the ditch,” Sen. Mary Landrieu (D., La.), said. She said they are the people the White House “doesn’t like, doesn’t want to help, or doesn’t (believe) needs help.”