Bloomberg Reports that Employers Oppose Increases in PBGC Premiums

Bloomberg Businessweek reports in “Employer groups oppose pension fees in budget deal” that:

“Employers that still offer workers traditional pension plans are in line for hefty insurance premium increases under the budget agreement struck in Congress, the second time in two years that lawmakers have turned to them to help finance spending deals.

The basic annual government-charged premium for pension insurance already was scheduled to rise from $42 for each covered worker in the private sector to $49 in 2014. The new budget agreement would raise that premium to $57 in 2015 and again to $64 the following year…

'It only provides another reason for sponsors to exit the system, thus further harming retirement security and the participants the system is intended to help,' said Scott Macey, president of the ERISA Industry Committee, a group that represents large employers on benefits issues.”

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