Posted on 10/29/2015 7:17:57 PM PDT by 11th_VA
Companies with corporate pensions will end up paying a price if a sweeping budget and debt deal proposed by Congress becomes law.
The House of Representatives is expected to pass legislation as soon as Wednesday that would eliminate the risk of a government default until after 2016 and increase government spending for the next two years. But the plan proposes steep increases to fees that companies pay to the nation's pension insurer, to help fund the added budget spending.
According to the proposed budget, companies that have defined benefit pension plans would have to increase the fees they pay to the Pension Benefit Guaranty Corp. by about 25%. Companies with pensions will pay $80 per person in their plan by 2019, up from $64 in 2016.
"The increases are tough,"said Alan Glickstein, a senior retirement consultant at consulting firm Towers Watson & Co.
Those fees will apply to companies regardless of funded status.
Meanwhile, companies that are underfunded, meaning the value of the assets in their plans don't match the expected liabilities, will have to pay a penalty that jumps to 4% in 2019 from 3% today. The increases come on top of regular increases that are tied to inflation. That means a company with a pension that is $100 million underfunded would pay at least $4 million in penalties in 2019.
All told, the fee increases will yield roughly $1.7 billion in revenue for the government, according to the Congressional Budget Office's analysis.
(Excerpt) Read more at blogs.wsj.com ...
The Uniparty is looking for a feeding frenzy.
The chum is in the water...
Those “republican” bastards. They all can go to hell.
I worked for Rockwell (in the 80s) and just had a buyout for my pension that fully vests in the next few years (the pension is now coming from Boeing). It seems they knew this was coming. I didn’t take it.
It’s a good way to darken the workforce, without looking like it’s racism ... just sayin ...
Socialism works until you run out of other people’s money — but there are a lot of places to look for other people’s money, so the game can go on for quite a long time.
Of course, pensions for government “workers” will not be touched. In fact, they’ll probably be increased...
They don’t fear the voters. They do whatever they want and we are not consulted. When we do get wind of their sh$! there’s a mass shooting to take it off the front page. I despise these people.
Obama administration in collusion with Republicans are robbing the ants to pay the grasshoppers.
Yet one more reason why Boehner is the best speaker the Democratic Party has ever had.
There was not a SINGLE Democrat vote against the budget deal.
God have mercy on your evil soul, John Boehner.
Let’s talk about the Public sector pension plans!
Retiring at 50 with 90% of salary?!?!?!
his plant was decimated by Charles Hurowitz of the Redwoods fame....he basically sold off assets to make a fortune than the govt let him claim bankruptcy....
I just do not think there are any honorable rich....they get their wealth thru thrashing the little guy and have govt carry their water..
why should the govt have to foot the bill for private pensions promised by big companies?.....
We are the "chum", no thanks to Boehner, McConnell, and Ryan.
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