Pension Provision in Tax Bill Not Likely to Make Finish Line

A piece of the House GOP tax bill that would give employers sponsoring traditional pension plans some relief isn’t likely to make it into the final version of the tax bill because it doesn’t raise enough revenue.

This is likely because the provision--which would make it easier for sponsors of closed pension plans to pass nondiscrimination testing--violates the Byrd rule. The Byrd rule restricts what can be in a reconciliation bill, including the limitation of “extraneous matter,” a Senate aide told Bloomberg Law.

There are several kinds of extraneous matter, including one that wouldn’t produce a change in outlays or ...