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Old 10-12-2018, 01:49 PM
StillCrazed StillCrazed is offline
Join Date: Sep 2016
Posts: 125
Default PBGC and underfunded plans

With the new pension tax of $80 per participant, plus 4.3% on underfunded single-employer plans, there is an immediate reward of funding the plan more completely. The penalty rate now exceeds the 10 yr Treasury rates. The escalator in variable rates is reaching the end of its useful life, like a built-in insurance rate increase.

But as a policy position, it is giving employers real incentive to drop PBGC plans, de-risking becomes more financially rewarding, and new DB plans become harder to sell.
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