H.R. 6929, as posted on the House Committee on Rules website, would increase the payments made by the Pension Benefit Guaranty Corporation (PBGC) to the Delphi Retirement Program for Salaried Employees. Outlays for fiscal year 2023 include retroactive lump-sum payments. The bill would appropriate whatever amounts are necessary for the additional benefits and associated administrative costs for PBGC.
Amendment #2, the Manager's Amendment, as posted on the House Committee on Rules website, would accelerate some variable-rate premium payments from 2033 into 2032. Because PBGC has permanent authority to spend from its revolving funds, enacting this provision would not affect budget authority.
H.R. 6929, as amended, would impose a private sector mandate as defined in the Unfunded Mandates Reform Act (UMRA) by requiring certain pension plans to pay insurance premiums to PBGC sooner than required in current law. The cost of the mandate would include the lost time value of the money paid to PBGC. CBO estimates that the cost of the mandate would not exceed the private sector threshold established in UMRA ($184 million in 2022, adjusted annually for inflation).
On July 22, 2022, CBO transmitted an estimate for H.R. 6929, as posted on the website of the House Committee on Rules on July 20, 2022. In that estimate, CBO mistakenly showed an increase in revenues stemming from the increased payments under the legislation. However, in this estimate CBO has excluded those effects as a result of established precedent to exclude certain effects on revenues that stem from government spending. Thus, this estimate does not show those increases in revenues.
