Sending Office: Honorable James B. Renacci
We invite you to become a co-sponsor of H.R. 761, The Pension and Budget Integrity Act. This legislation will eliminate a Washington-created budget gimmick and protect employees and employers.
Under current law, pension insurance premiums that are paid by employers to the Pension Benefit Guaranty Corporation (PBGC) are considered to be “on-budget,” making it appear as if the revenue collected in premiums can be spent for general government spending.
However, those premiums can only be used to maintain PBGC’s defined benefit pension plan insurance programs.
In no circumstances can premiums be used to pay for other government programs or spending. Despite that fact, Congress has increased premiums several times in recent years in order to off-set increased spending, most recently increasing premiums through
2025 by $7.65 billion in the Bipartisan Budget Act.
These increased premiums can be devastating for employers and the pension system. They reduce the amount businesses can invest in their retirement plans, their future, and their employees. According to one business, the increases in PBGC premiums are expected
to cost $25.3 million in a ten year period, from $16.4 million to $41.7 million. Additionally, these increased premiums may cause plan sponsors to exit the private pension system, putting the insurance program at risk of losing its premium paying base.
The Pension and Budget Integrity Act will fix this budget gimmick and prevent PBGC premiums from being used as an off-set for unrelated spending. It is important to note that this legislation does not strip Congress of the authority to raise premiums if
and when it is appropriate.
We strongly encourage you to become a co-sponsor of this bi-partisan legislation. If you would like to co-sponsor, or if you have any questions, please contact Stephen Hostelley (Stephen.Hostelley@mail.house.gov) in Congressman Renacci’s office at 5-3876
or Sydney Terry (Sydney.Terry@mail.house.gov) in Congressman Pocan’s office at 5-2906.
e-Dear Colleague version 2.0