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Final Pension Bailout Rule to Add $4.5 Billion to Ultimate Cost

Oct. 3, 2022, 2:50 PM

The federal government will need an additional $4.5 billion to bail out underfunded multiemployer pension plans, according to revised Congressional Budget Office estimates requested by Republican lawmakers.

A final rule the Pension Benefit Guaranty Corp. issued in July added an additional 5% to the $85.9 billion original estimate, the nonpartisan legislative agency said Friday. The final price tag is now expected to exceed $90 billion.

The private-sector pension insurer will offer two interest rates for bailout and non-bailout principal amounts, meaning troubled plans are promised more money from the start. Meanwhile, those plans receiving government assistance will be able to ...