Updated April 15, 2011
President Obama, in his proposals Wednesday to reduce the federal budget deficit by $4 trillion over 12 years, repeated his plan to give the PBGC authority to increase premiums on retirement plans.
The proposal for the Pension Benefit Guaranty Corp., described in Mr. Obama's fiscal year 2012 federal budget on Feb. 14, would give the pension insurance agency the authority to increase premiums that companies pay into the system. That increase was projected to bring an estimated $16 billion into the PBGC over a decade. Congress, which currently holds authority to adjust the premium, most recently raised it in 2005 to $30 a year per employee. The premium is indexed to inflation, bringing it to about $35 a year per employee.
The debt-reduction plan announced Wednesday also notes that Mr. Obama “does not believe that Social Security is in crisis or is a driver of our near-term deficit problems” but faces long-term challenges that must be addressed soon. He called on Republicans and Democrats to work together to strengthen Social Security without privitizing the program.