Limiting the Pension Benefit Guaranty Corporation's ability to levy charges against defined benefit plan sponsors that shut down certain operations would save employers $15 million over the next decade, according to the Congressional Budget Office.

An amendment of ERISA to do just that was passed by the Senate Committee on Health, Education, Labor and Pensions in July. While saving them money, the amendment also would mean sponsors couldn't write off any extra dollars directed to a DB plan when they temporarily close or move a plant and, consequently, would raise federal government tax revenues by $14 million between 2015 and 2024, the CBO said.

The CBO also said the Joint Committee on Taxation estimated that enacting S. 2511 would reduce the federal deficit by $29 million over the same period.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.