Thursday, April 26, 2007
Tweet[IWS] CRS: PENSION BENEFIT GUARANTY CORPORATION & THE FEDERAL BUDGET [24 April 2007]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Congressional Research Service (CRS)
Order Code RS22650
April 24, 2007
The Pension Benefit Guaranty Corporation and the Federal Budget
William Joseph Klunk, Actuary, Domestic Social Policy
http://www.opencrs.com/rpts/RS22650_20070424.pdf
[full-text, 6 pages]
Summary
The Pension Benefit Guaranty Corporation (PBGC) is a wholly owned government
corporation that insures private-sector defined benefit pension plans. The PBGC
receives no appropriations, but some of its operational cash flows are included in the
federal budget. In FY2006, the PBGC generated net revenue of $2.6 billion. Since
1975, it has generated more than $15 billion in revenue and has had net outlays (i.e.,
years in which its outlays exceed its receipts) in only two years, FY2003 and FY2005.
The current budget, however, projects net outlays to continue in FY2007 and FY2008.
In August 2006, the President signed the Pension Protection Act (PPA) of 2006,
which changes the premiums that plan sponsors must pay to the PBGC as well as the
contributions they must make to their plans. Over the next 10 years, the PPA provisions
related to the PBGC are expected to decrease federal spending by $5.5 billion and
decrease revenue by $2.4 billion. This report outlines the operational cash flows of the
PBGC and how they are affected by provisions of the PPA as well as certain provisions
included in the President's budget proposal for FY2008.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Congressional Research Service (CRS)
Order Code RS22650
April 24, 2007
The Pension Benefit Guaranty Corporation and the Federal Budget
William Joseph Klunk, Actuary, Domestic Social Policy
http://www.opencrs.com/rpts/RS22650_20070424.pdf
[full-text, 6 pages]
Summary
The Pension Benefit Guaranty Corporation (PBGC) is a wholly owned government
corporation that insures private-sector defined benefit pension plans. The PBGC
receives no appropriations, but some of its operational cash flows are included in the
federal budget. In FY2006, the PBGC generated net revenue of $2.6 billion. Since
1975, it has generated more than $15 billion in revenue and has had net outlays (i.e.,
years in which its outlays exceed its receipts) in only two years, FY2003 and FY2005.
The current budget, however, projects net outlays to continue in FY2007 and FY2008.
In August 2006, the President signed the Pension Protection Act (PPA) of 2006,
which changes the premiums that plan sponsors must pay to the PBGC as well as the
contributions they must make to their plans. Over the next 10 years, the PPA provisions
related to the PBGC are expected to decrease federal spending by $5.5 billion and
decrease revenue by $2.4 billion. This report outlines the operational cash flows of the
PBGC and how they are affected by provisions of the PPA as well as certain provisions
included in the President's budget proposal for FY2008.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 4:31 PM
