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PBGC Receipts and Payments Out of Budget if Bill Enacted

Legislation before the U.S. House would exclude Pension and Benefit Guaranty Corporation receipts and disbursements from the federal budget.

H.R. 4955, the Pension and Budget Integrity Act of 2016, was introduced on April 15 by Rep. James Renacci (R-Ohio).

The bill notes that ERISA did not include the receipts and disbursements of the PBGC in the federal budget, and that the Multiemployer Pension Plan Amendments Act, enacted six years later in 1980, included those receipts and disbursements in the federal budget for the first time.

The bill also notes that revenues from PBGC premiums —

  • are deposited into the revolving funds of the PBGC;
  • are credited to the operating budget of the PBGC;
  • cannot be used for any purpose other than PBGC expenses; and
  • are counted as revenue to the Treasury and used to offset unrelated federal spending.
The legislation argues that “sound budget policy dictates that”:

  • crediting PBGC premium revenues to the revolving funds of the PBGC and as receipts to the Treasury constitutes double-counting;
  • double-counting revenue is inconsistent with sound budgetary policy and good governance; and
  • excluding the receipts and disbursements of the PBGC from the federal budget will eliminate double-counting premium revenue.
H.R. 4955 would amend ERISA to explicitly say that PBGC receipts and disbursements would not be included in the federal budget.

The bill is before two House Committees — Budget and Education and the Workforce.