The pension reform legislation passed by the House of Representatives on Saturday would increase PBGC premiums by $5 billion over 10 years and significantly boost employer contributions to pension plans, House Majority Leader John Boehner, R-Ohio, and Rep. Howard McKeon, R-Calif., said today in a statement.
The statement cited a Congressional Budget Office study requested by Mr. McKeon, chairman of the House Education and the Workforce Committee. The CBO study also said the House bill would lower federal government revenues by about $2.4 billion over 10 years - and by $7.2 billion from 2011 through 2016 - due to the increase in tax-deductible pension contributions by employers. The study responds to criticism that the current legislation would reduce contributions that companies make to the pension plans.
The Senate is expected to vote on the pension reform bill Friday.