The ERISA Industry Committee Says Congress Should Reexamine Premiums Paid by Retirement Pension Plan Sponsors

WASHINGTON – November 16, 2023 – The ERISA Industry Committee (ERIC) said today that the $44.6 billion surplus in the Pension Benefit Guaranty Corporation’s (PBGC) single-employer insurance program, detailed in the agency’s Fiscal Year 2023 Annual Report, should lead Congress to reexamine the premiums paid by companies that sponsor defined benefit pension plans.
“Today’s report is a reminder that while PBGC’s single-employer insurance program has been overfunded for years, plan sponsors will be subject to yet another automatically imposed premium increase next year,” said Andy Banducci, Senior Vice President for Retirement and Compensation Policy at ERIC. “PBGC does not need current premium levels to sustain its insurance program, and continuing to dramatically overfund the program will not provide additional benefits or protections for employees.
“In addition to addressing PBGC premium levels, Congress should eliminate arcane budget scoring rules that have permitted the use of premium increases to “offset” spending proposals unrelated to the retirement system,” Banducci added.
The $44.6 billion surplus exceeds the $36.6 billion surplus PBGC reported last year. The agency’s Fiscal Year 2022 Annual Projections Report released in August projected a surplus of $63.6 billion by FY 2032.


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About The ERISA Industry Committee
ERIC is a national advocacy organization that exclusively represents large employers that provide health, retirement, paid leave, and other benefits to their nationwide workforces. With member companies that are leaders in every sector of the economy, ERIC advocates on the federal, state, and local levels for policies that promote flexibility and uniformity in the administration of their employee benefit plans.