Washington Round-Up

May 2009

Treasury Extends Money Market Guarantee Program - The U.S. Treasury Dept. has extended its emergency program guaranteeing money market funds through September 18, 2009. The program had been set to end April 30, 2009, but was extended on March 31, 2009, "to support ongoing stability in financial markets,” the Treasury Dept. said in a statement. All funds currently participating in the program are eligible to continue. The program currently covers more than $3 trillion of combined fund assets. Under this program, Treasury will guarantee that eligible money market fund investors will receive $1 for each money market share held as of September 19, 2008.

HRA Beneficiary Fix - Legislation that would provide tax parity to all beneficiaries who qualify for and receive employer-provided health plan benefits is expected to be reintroduced in the House and Senate. At the end of last year, the bill had 25 co-sponsors in the Senate as well as 119 in the House. While we expect this legislation to be reintroduced this spring, supporters hope to attach it to the larger health reform bills that will be debated this summer.

QDIA - QDIA – Congress may also reconsider the Qualified Default Investment Alternative (QDIA) regulation from the Department of Labor. Some in Congress would like to include stable value funds in the QDIA lineup even though such a proposal would likely re-ignite the heated debate between the insurance and mutual fund industries about the merits of their products.