Blogging Employee Benefits

February 1, 2006

PBGC Premium Increase Back on the Table

Filed under: Legislation, PBGC, Pensions — Fuguerre @ 4:13 pm

Congress is back up and running! Which among other things means that we have before us H.Res. 653 bringing back to the House the budget bill S. 1932, leftover from last December after lastminute tweaks made by the Senate required another look by the lower chamber. For BeneBlog, the areas of focus being –

  • PBGC flat-rate premiums for 2006 would increase to $30 per participant for single-employer plans, and to $8 per participant for multiemployer plans.
  • For single-employer plans that undergo a distress termination or involuntary termination, a special $1,250 annual premium would be required for up to 3 years, with a special rule applicable to plans terminated under bankruptcy reorganization.
  • FDIC pass-through insurance coverage for employee benefit plans and retirement accounts would increase.

And a few other bits and pieces.

It may not be until April, if not later, before we see a compromise bill emerge on the major pension bill, S.1783 and H.R. 2830. But before the week is out, we could have higher PBGC premiums.

Update – The House has approved S.1932 by a vote of 216-214, and the budget bill goes to the President, who is expected to sign it into law.

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4 Comments »

  1. Signed into law.

    Comment by Fuguerre — February 8, 2006 @ 8:23 pm

  2. The PBGC has posted details on the premium increases.

    Comment by Fuguerre — February 8, 2006 @ 10:46 pm

  3. And another we’ll-do-what-we-want statement.

    Comment by Fuguerre — February 9, 2006 @ 12:31 pm

  4. Might this constitutional challenge have legs? Or would a simple tech correction make it through easier than the final legislation itself managed to do? However it heads, as yet it’s difficult to envision the whole thing unwinding, and far far more than PBGC premium levels is at stake. Even so, I’ll be keeping a watch on it.

    Comment by Fuguerre — February 28, 2006 @ 7:15 am


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