At first blush, MAP-21 would appear to make pension plan contributions less likely in the near term. However, it also makes pension deficits more expensive by hiking the PBGC’s underfunding charge (the variable rate premium). The rise to nearly 2% on each dollar of deficit may encourage sponsors to voluntarily fund their plan even if not required to do so under MAP-21‘s higher discount rates. By comparison, the rise in the per-head charge (the fixed rate premium) is of less concern.

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NISA Contribution Relief with a Catch

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