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FBN's Peter Barnes on Congress considering charging private companies more for pension insurance.
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Tickets and now that the cost of doing business may soon be on the rise speaking of congress are now considering charging private companies more to participate.
In the pension benefit guarantee program that something Peter -- is -- today he's with us from DC Peter.
By Kyle that's right the PBGC guarantees that the pensions of 44 million workers and -- -- it's running a deficit.
Of about 26 billion dollars the largest in its history in part because of rising.
Corporate bankruptcies now lawmakers and the White House are struggling with how to fix the PBGC.
But the president and house Republicans have proposed raising premiums the company's.
Pay the agency by billions but corporate America opposes that it says the real problem is current government rules that require companies to use current low interest rates to calculate their returns on their pension investments that is requiring companies to cough up billions more today to fund pension plans.
Today's historically low interest rates has driven up pension funding obligations -- ever.
And so for companies to own -- only have cash on hand in their capital expenditure but budget.
That is coming down to decision between let's put the money into our pension plan whereas it's not a real need because it's been driven by today's low rates.
Or we can invest and and create jobs.
-- companies -- lobbying congress to allow them debt estimate pension returns using a new formula.
That would take an average of of of 125 year period.
That would boost returns on pension plans back to about maybe 6%.
Instead of about one and a half percent today lawmakers are considering this proposal seriously right now.
Along with -- at least some higher premiums Connell.
Peter thanks Peter Barnes in DC today here.
