The recently passed Bipartisan Budget Act of 2013 (BBA), effective January 1, 2014, includes an increase in fixed and variable Pension Benefit Guaranty Corporation (PBGC) premiums estimated at $7.9 billion.1
This provision underscores a focus on increasing revenue sources in the budget process and highlights the PBGC deficit estimated at $35.7 billion2 as of September 3, 2013.
Plan sponsors should consider the impact of these fees
• Funding strategies
• Dynamic de-risking strategies
• Pension risk transfer strategies