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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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.
