This didn't get much notice when it came out but I think it deserves some attention.
Bush plans 58% hike in pension premiums
By Jeff St.Onge and John Hughes
BLOOMBERG NEWS
http://www.dailystar.com/dailystar/business/56284.php
U.S. companies would pay 58 percent higher premiums to a government agency that insures workers' pensions under President Bush's plan to strengthen retirement protections, Labor Secretary Elaine Chao said Monday.
The annual premium, which hasn't risen since 1991, would grow to $30 per worker from $19 and be indexed to wage growth, the Labor Department said in a fact sheet. Stock-price declines and low interest rates have eroded the value of pension plans, which Chao estimates are underfunded by $450 billion.
Large employers won't welcome the proposed increase to $30, said James A. Klein, president of the American Benefits Council, a Washington-based group that represents pension plan sponsors. Companies that adequately fund pensions may not believe they should be hit with an increase, he said.
"We're foolish if we think the problems of the PBGC are somewhat inadequate premium income," Klein said in an interview. "The real issue is the funding rules" that let companies put off resolving their underfunded plans."