Senate passes UI bill with pension offsets

The Senate on April 7, 2014 approved a five-month extension of federal unemployment benefits (H.R. 3979) with the costs of the legislation offset in part by provisions affecting pension funding. However, the fate of the measure is uncertain in the House because speaker John Boehner (R-OH) has said he would not hold a vote on the measure unless it includes job-creating provisions.

The cost of extending the benefits is offset by using pension smoothing provisions from the 2012 highway bill, which were set to phase out in 2014. The measure also raises revenue by allowing single-employer pension plans to prepay their flat-rate premiums to the Pension Benefit Guaranty Corporation (PBGC).

Source: H.R. 3979.

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