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Pension risk perspective: Borrowing money to reduce PBGC premiums

ByChris Jasperson
14 January 2016
In recent years, Congress raised PBGC premiums sharply for single-employer defined benefit pension plans. In 2016, the increased premiums will act as an effective tax of 3.0% per year on unfunded pension liabilities, with additional increases scheduled through 2019. This article discusses plan sponsors borrowing money to fully fund their pension plans, thereby eliminating these PBGC premiums.

About the Author(s)

Chris Jasperson

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