GAO Recommendation Regarding Pension Premiums

November 13, 2012 at 4:58 pm Leave a comment


The Government Accountability Office (GAO) has published an interesting report, “Redesigned Premium Structure Could Better Align Rates with Risk from Plan Sponsors “, that is located on their website at http://www.gao.gov/assets/650/649838.pdf.  The report is suggesting creating a new risk based premium structure for the Pension Benefit Guaranty Corporation (PBGC) payments for pension plans.  As someone who has always wondered how the current structure was decided upon, I find this an interesting idea.  For example, how did they determine that single employer plans should pay so much more than multiemployer plans?   On the surface, it seems like a good idea and should help ease some of the agency’s funding issues.  However, I would expect a lot of discussion and disagreement on any chosen methodology.  I look forward to seeing how this interesting idea unfolds!

Thanks for reading and have a wonderful day!   Please be sure to subscribe to my blog and follow me on twitter @ChristineGurney.

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Christine Gurney

A pension professional who shares her thoughts and ideas about the pension world for industry members and anyone else interested.

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