19 01, 2016

One way to avoid PBGC premiums? Borrow to fund pension liabilities

2016-01-19T23:52:29-08:00January 19th, 2016|Categories: PBGC|Tags: |

Impending premium increases to the Pension Benefit Guaranty Corp. means more sponsors of defined benefit plans should consider borrowing money to fully fund their plans, according to new analysis from Russell Investments. The Bipartisan Budget Act of 2015 insisted new increases in both the per-participant and variable premium rates sponsors pay to PBGC. Sponsors that pay a variable premium do so at a rate based on their plans’ unfunded liability. […]

15 01, 2016

Is the Pension Benefit Guaranty Corp. Worth Propping Up?

2016-01-15T22:35:51-08:00January 15th, 2016|Categories: PBGC|Tags: |

Terry O’Sullivan has a problem. General president of the Laborers’ International Union of North America, O’Sullivan thinks the half-million union members he represents at $35 billion LIUNA are headed for disaster. That’s because, as insured members of the  Pension Benefit Guaranty Corp., they’re paying into a mandatory program with a whopping $52.3 billion deficit. The PBGC, the Washington-headquartered federal insurance agency that provides modest replacement income for multiemployer pension participants whose defined benefit pensions have become insolvent, estimates that unless changes are made, it will run out of [...]

4 11, 2015

PBGC rate hikes moving DB plans into danger zone

2015-11-04T18:10:57-08:00November 4th, 2015|Categories: PBGC|Tags: , |

Sharply higher Pension Benefit Guaranty Corp. premiums resulting from the new federal budget deal will push more employers to shrink or terminate their defined benefit plans, moves that also will further erode the agency’s shaky finances, industry observers said. The budget deal approved by the House Oct. 28 and by the Senate Oct. 30 would raise PBGC premiums by more than 40% over the next four years, coming on top of multiyear increases already added as part of a [...]

29 10, 2015

House approves large PBGC premium hikes in budget deal

2015-10-29T21:09:54-07:00October 29th, 2015|Categories: PBGC|Tags: |

The House of Representatives approved a bipartisan budget deal late Wednesday that calls for significantly higher premiums paid by single employers to the Pension Benefit Guaranty Corp., in a 266-167 vote. The Bipartisan Budget Act of 2015 raises federal spending caps and lifts the national debt ceiling before the federal government runs out of borrowing authority Nov. 3. To offset some of those costs, the deal raises plan sponsors’ fixed-rate premium by more than 40% over the next four [...]

16 07, 2015

Multiemployer funds, PBGC face hurdles with partition

2015-07-16T16:46:36-07:00July 16th, 2015|Categories: PBGC|Tags: , |

Trustees of struggling multiemployer pension funds have a narrow window of opportunity to do more than just cut benefits in order to survive, if they can take advantage of the Pension Benefit Guaranty Corp. partition program before the agency itself runs out of money, benefits experts said. The Multiemployer Pension Reform Act of 2014, which allows deeply underfunded plans to reduce benefits to avoid insolvency, also expanded the PBGC’s power to partition plans. […]

28 05, 2015

Obama PBGC nominee awaits Senate approval

2015-05-28T16:31:17-07:00May 28th, 2015|Categories: PBGC|Tags: , |

The White House announced the nomination W. Thomas Reeder Jr. as director of the Pension Benefit Guaranty Corp. last week. The nomination comes more than eight months after the resignation of previous director, Josh Gotbaum. Reeder is health care counsel at the IRS, a position he’s held since March 2013. Previously, he was senior benefits counsel on the Senate Finance Committee, from 2009 to 2013. He holds a law degree from the University of Texas, and spent from 1987 [...]

3 04, 2015

Pension Benefit Guaranty Seeks Comments on Multiemployer Plans Electronic Filing Requirements

2015-04-03T21:32:51-07:00April 3rd, 2015|Categories: PBGC|Tags: , |

The U.S. Pension Benefit Guaranty Corporation published the following proposed rule in the Federal Register: Multiemployer Plans; Electronic Filing Requirements A Proposed Rule by the Pension Benefit Guaranty Corporation on 04/03/2015 […]

4 03, 2015

Pros and Cons of Rolling Your 401(k) Into Pension

2015-03-04T01:09:47-08:00March 4th, 2015|Categories: PBGC, Retirement|Tags: , , , |

A recent rule change has resulted in the Pension Benefit Guarantee Corporation(PBGC) guaranteeing 401(k) balances that are rolled into eligible pension plans. What this means is that if a company offers a pension plan 401(k) balances can be rolled over into the pension and the pension benefit that would result from the rolled over balance will be guaranteed by the PBGC just like the original pension benefit prior to the rollover. This will only impact folks whose employer offers both types of plans. [...]

19 02, 2015

PBGC, IRS Request Input on Multiemployer Plan Guidance

2015-02-19T23:17:30-08:00February 19th, 2015|Categories: PBGC|Tags: , , |

Regulators are looking for input from stakeholders in the multiemployer retirement plan industry before issuing guidance about the recently passed Multiemployer Pension Reform Act of 2014 (MPRA). In a request for information (RFI) from the Pension Benefit Guaranty Corporation (PBGC), the agency is asking for input about expanded rules for partitions and mergers of multiemployer plans. Section 122 of MPRA replaced the multiemployer partition rules under Section 4233 of the Employee Retirement Income Security Act (ERISA) with new rules. [...]

5 02, 2015

Obama wants to give PBGC premium power

2015-02-05T18:58:43-08:00February 5th, 2015|Categories: PBGC|Tags: , |

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.  […]

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