Several Reforms Might Improve Plan Funding and Reduce the Risks to PBGC's Long-term Viability

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Several Reforms Might Improve Plan Funding and Reduce the Risks to PBGC's Long-term Viability

  • Strengthen funding rules applicable to poorly funded plans

  • Consider additional tax deductible funding flexibility

  • Limit lump sums in underfunded plans

  • Modify program guarantees (e.g., phase-in rules)

  • Raise and modify pension premiums (e.g., nature of risk related premiums)

  • Eliminate floor/offset arrangements with significant investment concentrations in employer securities

  • Increase transparency of current plan funding information

  • Modify bankruptcy laws

  • Address issues surrounding certain hybrid plans (e.g., cash balance plans)