The split in control of Congress means that legislative gridlock will shift the lead on pension issues to executive-branch agencies over next two years, pension industry lobbyists said.
“The action will continue to shift to the executive branch. What it means is there's a strong likelihood that nothing will come out of Congress in the pension world,” said Ed Ferrigno, vice president of Washington affairs for the Profit Sharing/ 401k Council of America.
“Not much will happen on the legislative front in terms of retirement issues,” said Judy Schub, managing director of the Committee on Investment of Employee Benefit Assets.
The GOP's House majority also suggests that it will be harder for defined-benefit plans to win additional relief from funding obligations, lobbyists said.
“Traditionally, Republicans have been less sympathetic on defined-benefit funding issues,” said Aliya Wong, executive director of retirement policy for the U.S. Chamber of Commerce. “However, we're hopeful they will see the connection between funding issues and business prosperity.”
With the GOP in power, House Speaker Nancy Pelosi, D-Calif., is expected to be replaced by Rep. John Boehner, R-Ohio.
In line to replace Rep. George Miller, D-Calif., as chairman of the House Education and Labor Committee is Rep. John Kline, R-Minn. The likely successor to Rep. Barney Frank, D-Mass., as chairman of the House Financial Services Committee is Rep. Spencer Bachus, R-Ala.
Doug Halonen is a reporter at sister publication Pensions & Investments.
