(BLOOMBERG) -- State and local governments in the U.S. would be permitted to turn their retirement systems over to life insurers under a Senate bill that seeks to diminish public-pension deficits.

Voluntary participation by states and municipalities would reduce the threat of insolvency by removing the possibility of pension-plan underfunding, according to Senator Orrin Hatch of Utah, the top Republican on the Senate Finance Committee and author of the bill introduced today. The measure, which would alter federal tax law, also would permit changes in nongovernmentretirement plans to boost employee savings at small and mid-size companies.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access