Pension Change Resurfaces on Hill

Reid proposes modifying pension contribution rules, pension insurance premiums, to pay for loan rate freeze.

Company pension contribution rules should be modified and pension insurance premiums increased to cover the cost of a one-year freeze in the 3.4 percent student loan interest rate, U.S. Senate Majority Leader Harry Reid proposed.

Reid urged raising the premiums companies pay to the Pension Benefit Guaranty Corp. and letting companies contribute less to retirement plans that provide a defined benefit level. The Nevada Democrat put the idea in a letter to House Speaker John Boehner and Senate Minority Leader Mitch McConnell, both Republicans.

Highway Bill

That part of Reid’s proposal was included in a highway bill the Senate passed in March.

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