Pension Benefit Guaranty Corporation
Sub-Title:
Redesigned Premium Structure Could Better Align Rates with Risk from Plan SponsorsAuthor:
Charles A. JeszeckPublisher:
DIANE Publishing CompanyPublication Date:
12-27-2012ISBN:
9781457835902Pages:
95Subjects:
EconomicsAvailable as:
Paperback, 9781457835902Description:
At the end of FY 2011, the Pension Benefit Guaranty Corp. (PBGC) insured the pension benefits of 44 million U.S. workers, retirees, and beneficiaries in about 27,000 private defined benefit plans. PBGC’s 2011 net accumulated deficit of $26 billion, coupled with future risks posed by plan sponsors and their plans, threatens PBGC’s solvency. To help contain PBGC’s deficit, Congress recently passed legislation increasing PBGC premiums. Beyond simply increasing rates, the administration has proposed granting PBGC authority to redesign its premium structure to more fully reflect the risk of new claims. This report examined (1) the options available to adjust premiums to improve PBGC’s financial condition; (2) the potential implications of adjusting premiums; and (3) the potential implementation challenges in moving to a more risk-based premium structure. Figures and tables. This is a print on demand report.
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