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WASHINGTON, DC -- Representative George Miller (D-CA), the senior Democrat on the House Education and the Workforce Committee, issued the following statement today after the Congressional Budget Office revealed that the House Republican pension bill (H.R. 4) passed late Friday night would increase pension underfunding over the next five years and increase claims against the federal pension insurance agency by more than a quarter of a billion dollars over the next 10 years.
“The Republican pension bill approved by the House on Friday night has been repeatedly described as ‘sweeping’ and ‘major.’ American workers and retirees who interpret that to mean that they can expect a greater measure of financial security during their golden years will be disappointed to learn the truth – that the bill is a sweeping disappointment. The Congressional Budget Office has confirmed to my office what we’ve known for the last week: that under H.R. 4, companies will be required to contribute almost $30 billion less to their workers’ pension plans in the next five years than they would have to under current law, and claims against the nation’s pension insurer will go up, not down. These are two of the key problems that the bill’s supporters say their legislation was meant to fix. This bill, unfortunately, will not solve the large and growing U.S. retirement security crisis. Congress must take another crack at getting this right if it truly wants to help workers and retirees.”
The CBO analysis shows that, as a result of decreased pension contributions, taxable corporate profits will increase, resulting in an almost $5 billion increase in tax revenues. CBO told Miller’s office that this $5 billion tax revenue increase indicates a $30 billion decline in pension contributions over the next five years.
The federal pension insurer, the Pension Benefit Guaranty Corporation, may have performed additional analysis of final pension legislation that it is now refusing to release to the public, even though it could help provide a greater understanding of the legislation’s effects before the Senate votes on it. The PBGC refused to fulfill a Freedom of Information Act request filed by Miller seeking the information.
For more information:
The CBO discussed its findings in a letter to senior lawmakers. Click here for a copy of that letter.
For a copy of the PBGC letter, click here.
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