Pension Benefit Guaranty Corporation Legislative History
The following provides a legislative history of the Pension Benefit Guaranty Corporation from the 112th Congress through the first session of the 113th Congress. For prior legislative history, please see the 2012 Green Book.
SINGLE-EMPLOYER INSURANCE PLAN
Moving Ahead for Progress in the 21st Century Act, P.L. 112-141
The Moving Ahead for Progress in the 21st Century Act (MAP-21, P.L. 112-141) increased the premiums that plan sponsors pay to PBGC and made changes to the governance of PBGC.
MAP-21 increased the single-employer flat-rate premium to $42 per participant in 2013 and to $49 per participant in 2014, after which it would again be indexed for increases in the annual rate of growth in the average national wage.
MAP-21 increased the variable-rate premium, which had been $9 per $1,000 of underfunding, by $4 (after indexing) per $1,000 of unfunded vested benefits in 2014, and by another $5 (after indexing) per $1,000 of unfunded vested benefits in 2015. After 2015, the variable rate will be indexed for increases in annual rate of growth in the national average wage. MAP-21 provided a new rule that the maximum variable-rate premium cannot exceed $400 per participant in 2013. After 2013, the maximum variable-rate premium will be indexed for increases in the national average wage index.
MAP-21 made changes to the governance structure of PBGC, such as providing that the term of the Director of PBGC be five years, requiring the board of directors to meet at least four times per year, creating a Participant and Plan Sponsor Advocate in PBGC, and requiring independent reviews of governance structures and of the PBGC’s Single-employer and Multiemployer Pension Insurance Modeling Systems. MAP-21 repealed PBGC’s statutory authority to borrow up to $100 million from the U.S. Treasury on an unsecured basis.
Continuing Appropriations Resolution, 2014, P.L. 113-67
P.L. 113-67 (introduced as H.J.Res. 59) was the vehicle for the December 2013 bipartisan budget agreement that increased PBGC premiums. The single-employer flat-rate premium increased to $57 in 2015 and $64 in 2016. After 2016, the flat-rate premium will again be indexed to increases in the average national wage. H.J.Res. 59 increased the variable-rate premium in 2015 by an additional $10 over the 2014 rate (after the 2014 rate is indexed for increases in the average national wage) per $1,000 of unfunded vested benefits and by an additional $5 (after the 2015 rate is indexed for increases in the average national wage) in 2016 per $1,000 of unfunded vested benefits. After 2016, the variable-rate premium will again be indexed to increases in the average national wage. P.L. 113-67 increased the maximum variable-rate premium to $500 per participant beginning in 2016.
MULTIEMPLOYER PLAN INSURANCE PROGRAM
Moving Ahead for Progress in the 21st Century Act, P.L. 112-141
The Moving Ahead for Progress in the 21st Century Act (MAP-21, P.L. 112-141) increased the premiums that the sponsors of multiemployer defined benefit pension plans pay to PBGC. MAP-21 increased the 2013 premium by $2 per participant, after being increased for changes in the growth of the national average wage. After 2013, the multiemployer plan premium will continue to be indexed for increases in the annual rate of growth in the national average wage index.
This page was prepared on August 19, 2014 for the 2014 version of the House Ways and Means Committee Green Book.