Legislation that would take PBGC premiums out of the federal budget process was introduced in the Senate on Thursday, by Sen. Michael Enzi, R-Wyo.
It mirrors a House version that was introduced April 15.
Premiums paid to the Pension Benefit Guaranty Corp. do not go into the federal treasury, but they are counted as revenue, or “on budget,” when congressional negotiators work up federal budgets. Groups representing plan executives complain have complained that in recent years — during which there have been three PBGC premium increases —that the premiums have become a budget gimmick.
A coalition of industry groups for plan sponsors and retirement professionals wrote to Mr. Enzi that the proposed Pension and Budget Integrity Act “is common-sense legislation that will restore Congress’ original intent with regard to the PBGC and the premiums employers pay, and bring honesty and accountability back to the budget process.”
Mercer President and CEO Julio Portalatin said in a June letter to members of Congress that the legislation can fix “a key problem that has contributed to the departure of companies from the pension system.”
