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1 (November 10, 2005)

handle is hein.crs/crsuntaacaq0001 and id is 1 raw text is: Order Code RS22315 Updated November 10, 2005 CRS Report for Congress Received through the CRS Web Budget Reconciliation and the PBGC Neela K. Ranade Chief Actuary Domestic Social Policy Division Summary The Pension Benefit Guaranty Corporation (PBGC) posted a deficit of $23.5 billion as of the latest reporting period, and the deficit is expected to grow further. Major bills introduced in the 109' Congress to reform funding rules for the defined benefit pension system and to raise PBGC premiums include H.R. 2830 and S. 1783. Neither has yet passed the full House or Senate. PBGC premiums are an important source of revenue for meeting the budget reconciliation targets. The House Budget Committee has reported out H.R. 4241, a budget reconciliation package that would raise PBGC premiums. The Senate has passed S. 1932, a budget reconciliation package that also contains PBGC premium increases. The House and Senate budget reconciliation proposals include different provisions for increasing PBGC premiums that would raise revenues of $6.2 billion and $6.7 billion, respectively, over five years. The House Republican leaders are attempting to bring the budget reconciliation bill to the floor in the near future. Once the House passes its budget reconciliation bill, the House and Senate will conference in the remaining weeks of 2005 to try to pass a final bill. This report will be updated as legislative developments warrant. Role of the PBGC in the Budget Reconciliation Process The Pension Benefit Guaranty Corporation (PBGC), the federal corporation that insures the pension benefits of participants in most private sector-defined benefit pension plans, posted deficits of $23.3 billion and $236 million for its single-employer and multiemployer programs, respectively, as of September 30,2004, the latest reporting date. Since September 2001, the PBGC has posted higher deficits each year; the PBGC deficit as of September 30, 2005, is expected to increase.' In April 2005, the House and Senate adopted a joint budget resolution that provided the House Education and Workforce Committee and the Senate Committee on Health, 1 For additional information, see CRS Report RL32702, Can the Pension Benefit Guaranty Corporation Be Restored to Financial Health? and CRS Report RL32991, Defined Benefit Pension Reform for Single-Employer Plans, by Neela K. Ranade. Congressional Research Service 4- The Library of Congress

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