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U
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GOVERNMENT PRINTING OFFICEWASHINGTON
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For sale by the Superintendent of Documents, U.S. Government Printing OfficeInternet: bookstore.gpo.govPhone: toll free (866) 512–1800; DC area (202) 512–1800Fax: (202) 512–2104Mail: Stop IDCC, Washington, DC 20402–000163–011
2011
 
DEFINED BENEFIT PENSION PLAN FUNDING LEVELS AND INVESTMENT ADVICE RULES
HEARING
BEFORE THE
 
COMMITTEE ON WAYS AND MEANS U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
OCTOBER 1
,
2009
 
Serial No. 111–31
Printed for the use of the Committee on Ways and Means
(
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COMMITTEE ON WAYS AND MEANS
CHARLES B. RANGEL, NEW YORK,
Chairman
FORTNEY PETE STARK, California SANDER M. LEVIN, Michigan JIM MCDERMOTT, Washington JOHN LEWIS, Georgia RICHARD E. NEAL, Massachusetts JOHN S. TANNER, Tennessee  XAVIER BECERRA, California LLOYD DOGGETT, Texas EARL POMEROY, North Dakota MIKE THOMPSON, California JOHN B. LARSON, Connecticut EARL BLUMENAUER, Oregon RON KIND, Wisconsin BILL PASCRELL, JR., New Jersey SHELLEY BERKLEY, Nevada JOSEPH CROWLEY, New York CHRIS VAN HOLLEN, Maryland KENDRICK B. MEEK, Florida  ALLYSON Y. SCHWARTZ, Pennsylvania  ARTUR DAVIS, Alabama DANNY K. DAVIS, Illinois BOB ETHERIDGE, North Carolina LINDA T. SA ´NCHEZ, California BRIAN HIGGINS, New York JOHN A. YARMUTH, Kentucky DAVE CAMP, Michigan WALLY HERGER, California SAM JOHNSON, Texas KEVIN BRADY, Texas PAUL RYAN, Wisconsin ERIC CANTOR, Virginia JOHN LINDER, Georgia DEVIN NUNES, California PATRICK J. TIBERI, Ohio GINNY BROWN–WAITE, Florida GEOFF DAVIS, Kentucky DAVID G. REICHERT, Washington CHARLES W. BOUSTANY, JR., Louisiana DEAN HELLER, Nevada PETER J. ROSKAM, Illinois J
 ANICE
M
 AYS
,
Chief Counsel and Staff Director
J
ON
T
RAUB
,
 Minority Staff Director
Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public hearing records of the Committee on Ways and Means are also published in electronic form.
The printed hearing record remains the official version.
Because electronic submissions are used to prepare both printed and electronic versions of the hearing record, the process of converting between various electronic formats may introduce unintentional errors or omissions. Such occur-rences are inherent in the current publication process and should diminish as the process is further refined.
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C O N T E N T S
Page
 Advisory of September 24, 2010, announcing the hearing ............................2 WITNESSES Craig P. Rosenthal, Principal, Mercer ...................................................................6 Norman Stein, Senior Legislative Counsel, Pension Rights Center ....................10 Bill Nuti, Chairman and Chief Executive Officer, NCR, on behalf of the  American Benefits Council ..................................................................................18 Judith F. Mazo, Senior Vice President, Director of Research, The Segal Com-pany, on behalf of the National Coordinating Committee for Multiemployer Plans and the Multiemployer Pension Plan Consortium ..................................26 Damon Silvers, Associate General Counsel, AFL–CIO ........................................34 Mark Warshawsky, Director of Retirement Research, Watson Wyatt World-wide, Arlington, Virginia .....................................................................................38 LeRoy Gilbertson, Member, National Policy Council, AARP ...............................62 Mark A. Davis, Vice President, CAPTRUST Financial Advisors, on behalf of the National Association of Independent Retirement Plan Advisors, Westlake Village, California ................................................................................73 Robert G. Chambers, Partner, McGuireWoods, on behalf of the American Benefits Council, the Profit Sharing/401k Council of America, and the Soci-ety for Human Resource Management Charlotte, North Carolina ..................79 Christopher Jones, Executive Vice President of Investment Management and Chief Investment Officer, Financial Engines, Palo Alto, California ................93 Edmund F. Murphy, III, Managing Director, Putnam Investments, LLC, Bos-ton, Massachusetts ...............................................................................................105 Jim McCarthy, Managing Director, Morgan Stanley, on behalf of the Securi-ties Industry and Financial Markets Association .............................................108 SUBMISSIONS FOR THE RECORD  American Council of Life Insurers, Statement ......................................................132 Defined Benefit Funding Relief Working Group, Letter ......................................134 Department of Labor’s Advisory Council on Employee Welfare and Pension Benefit Plans, Statement .....................................................................................138 Nicholas Paleveda, MBA J.D. LL.M, Statement ...................................................141 Girl Scouts of the USA, Statement ........................................................................145 Illinois Education Association, Statement .............................................................147 Independent Sector, Statement ..............................................................................148 Investment Company Institute, Statement ...........................................................149 Maryland State Education Association, Letter .....................................................155 Matthew D. Hutcheson, Statement ........................................................................156 National Association of Insurance and Financial Advisors, Statement ..............159 National Council of Farmer Cooperatives, Statement ..........................................162 New Jersey Education Association, Letter ............................................................163 Oklahoma Education Association, Letter ..............................................................163 ERISA Industry Committee, Statement ................................................................164 Michigan Education Association, Statement .........................................................167 National Education Association, Statement ..........................................................168 North Dakota Education Association, Statement .................................................170 Pennsylvania State Education Association, Statement ........................................171 Investment Advice and Defined Benefit Plan Funding, Statement ....................173 United Jewish Appeal–Federation of New York, letter ........................................175 United Jewish Communities of Metro West New Jersey, letter ..........................176  YRC Worldwide, Inc., Statement ............................................................................178
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