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Critical of Proposed PBGC Premium Increases

The Pension Coalition, a consortium of trade associations, professional organizations and companies that provide retirement benefits to millions of workers and retirees, released a study on May 14, 2014, estimating the economic impact of increases to premiums they pay to insure their defined benefit plans. The study, “Increasing Pension Premiums: The Impact on Jobs and Economic Growth,” likens the proposed increases to a tax hike, and says that employer sponsors are already reeling from $17 billion in premium increases enacted over the past two years. The PBGC is asking Congress for the authority to raise premiums further. The Pension Coalition’s study says this would amount to a cumulative $51.4 billion hit to the economy over the next 11 years, and cost an average of 42,000 jobs a year. From Benefits Pro: by Nick Thornton “Pension Coalition critical of proposed PBGC premium increases.”