The Senate today passed its version of a deficit reduction package that includes a provision, as agreed upon with the House, to hike PBGC flat-rate insurance premiums to $30 per participant, from the current $19. The premium for multiemployer pension plans would increase to $8 per participant from $2.60. Additionally, companies that dump their underfunded pension plans on the PBGC during bankruptcy will have to pay $1,250 per participant for three years. This provision ends after five years.
The entire bill now goes back to the House for another vote because of certain non-pension provisions rejected by Senate Democrats.