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Highway Bill Brings Rise in Pension Risk
Pension Risk Matters Link to more items from this source
July 1, 2012
"[The pension provisions of the] just-passed highway bill ... could force costs upward for American businesses. For one thing, sponsors will be able to stretch out their cash outlays to buoy underfunded defined benefit plans over time. As a result, tax-deductible contributions will be smaller in the next few years, taxable income will be higher and federal tax coffers will go up by an estimated $9.4 billion over the next 10 years. In addition, [PBGC] insurance premiums ... will be higher to the tune of roughly $10 billion in the coming decade. The news is troublesome for numerous reasons."

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