§1001b Findings and Declaration of Policy

Summary

Requires strengthening the federal insurance that protects single-employer defined benefit pension plans and raising the insurance premiums. These plans are run by one employer and promise specific retirement payments. Congress found they affect business across state lines, that millions of workers, retirees, and their families depend on them, and that the insurance program is critical to protecting those benefits. Congress also found the current system sometimes lets employers end plans to avoid paying and shift unpaid pension debts onto the insurer and other premium-payers. The policy is to change the insurance system and increase premiums so benefits are more likely to be paid in full, to move unpaid pension liabilities to the insurer only in cases of severe hardship, to keep premium costs reasonable, to encourage employers to keep and grow these pension plans, and to make sure current shortfalls and future obligations are properly financed.