President Obama is once more proposing giving the Pension Benefit Guaranty Corp. the power to raise premiums on single and multiemployer defined benefit pension plans, a move that would raise $19 billion over the next decade.
Currently set by Congress, single-employer PBGC premiums are scheduled to increase to $57 per-participant this year and to $67 in 2016, nearly double the $35 rate in 2012.
Premium increases generated by the proposed new authority – contained in the spending plan unveiled by the Obama White House Monday – would be split between single-employer and multiemployer programs "in accordance with the size of each program's deficit," according to a Department of Labor fact sheet.
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