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.

"I suggest we use part of these offsets to pay for the student loan legislation and pass that measure immediately so that middle-class families will not see their interest rates double on July 1," Reid said.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.