Defined benefit plans are becoming a retirement vehicle of the past — and the recently signed budget funding the federal government for the next two years won’t help. The budget, which President Barack Obama signed into law this week, contains increases for Pension Benefit Guaranty Corporation premiums for single-employer pension plans.
The increased rates “do nothing to encourage single-employers to continue defined benefit plans or improve benefits for retirees,” says Annette Guarisco Fildes, president and CEO of the ERISA Industry Committee (ERIC). “In fact, the increases only work to further weaken the private retirement system.”
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