The tentative budget deal reached between the Obama White House and Congressional Republicans would slap on new and significant increases to the premiums sponsors of defined benefit plans pay to the Pension Benefit Guaranty Corp.
Just yesterday, PBGC published rate hikes for plan years beginning in 2016. The agency did not include the increases proposed in the budget deal.
The per-participant amount for the flat-rate premium was raised to $64 for next year, up from $57 in 2015. The variable rate was raised to $30 per $1,000 of unfunded liabilities, up from $24 in 2015.
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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.
