A new study found that additional premiums for the Pension Benefit Guaranty Corporation (PBGC) would severely impact U.S. GDP, the job market, and consumer purchasing power.
The PBGC Premium Report, compiled on behalf of the Pension Coalition, the National Association of Manufacturers, the ERISA Industry Committee, and the U.S. Chamber of Commerce, studied the effects of PBGC premium increases. Using the Long-term Interindustry Forecasting Tool (LIFT), the report analyzes the impacts of PBGC Premium increases from MAP-21, BBA, and the Obama Administration’s budget proposal, all of which are cumulative.
The full PBGC Premium Report is available here.
The PBGC, a federal agency charged with protecting the retirement incomes of more than 40 million American workers, responded to the results of the Premium Report on May 14. PBGC Director Josh Gotbaum emphasized that the Obama Administration supports premium reforms saying, “The President’s proposal would allow PBGC’s board to both raise and lower premiums in a way that is fair, affordable, and preserves pensions.”
The full PBGC response can be found here.