Employer groups oppose pension fees in budget deal

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WASHINGTON (AP) — Employers that still offer workerstraditional pension plans are in line for
hefty insurance premiumincreases under the budget agreement struck in Congress.It’s the second time in
two years that lawmakers have turned to those plans to help finance spending deals.Businessgroups warn
that the increases will only encourage more employers tofreeze their pension plans or close them to new
employees. The increaseswould come on top of a $9 billion boost in pension premiums thatCongress
approved last year.The estimated $8 billion in newpremiums would go toward reducing deficits by a
government agency, thePension Benefit Guaranty Corp., that covers pension payments to retireeswhen
bankrupt companies can’t.Supporters of the fee increases say they’re crucial to keeping the agency
solvent.Copyright 2013 The Associated Press. All rightsreserved. This material may not be published,
broadcast, rewritten orredistributed.WASHINGTON (AP) — Employers that still offer workerstraditional
pension plans are in line for hefty insurance premiumincreases under the budget agreement struck in
Congress.It’s the second time in two years that lawmakers have turned to those plans to help finance
spending deals.Businessgroups warn that the increases will only encourage more employers tofreeze their
pension plans or close them to new employees. The increaseswould come on top of a $9 billion boost in
pension premiums thatCongress approved last year.The estimated $8 billion in newpremiums would go toward
reducing deficits by a government agency, thePension Benefit Guaranty Corp., that covers pension
payments to retireeswhen bankrupt companies can’t.Supporters of the fee increases say they’re crucial to
keeping the agency solvent.Copyright 2013 The Associated Press. All rightsreserved. This material may
not be published, broadcast, rewritten orredistributed.

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