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ERISA amendment would save sponsors millions

The amendment also would raise federal government tax revenues by $14 million between 2015 and 2024, the CBO said.

By Nick Thornton | Updated on September 10, 2014
Sen. Tom Harkin, D-Iowa, introduced the amendment that would restrict PBGC’s enforcement of the 4062(e) regulation. (AP Photo)

Limiting the Pension Benefit Guaranty Corporation’s ability to levy charges against defined benefit plan sponsors that shut down certain operations would save employers $15 million over the next decade, according to the Congressional Budget Office.

An amendment of ERISA to do just that was passed by the Senate Committee on Health, Education, Labor and Pensions in July. While saving them money, the amendment also would mean sponsors couldn’t write off any extra dollars directed to a DB plan when they temporarily close or move a plant and, consequently, would raise federal government tax revenues by $14 million between 2015 and 2024, the CBO said.

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Nick Thornton

Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.

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