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H.R. 397, Rehabilitation for Multiemployer Pensions Act of 2019 (CBO Report for Congress)

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Congress 116th
Date Requested July 19, 2019
Date Sent July 23, 2019
Description:
The bill would Establish a new agency, the Pension Rehabilitation Administration (PRA), to provide loans to some multiemployer defined benefit pension plans that are financially troubled Appropriate funds to the Pension Benefit Guaranty Corporation to provide grants to some plans that receive loans Impose a private-sector mandate by requiring certain pension plans to apply for loans Estimated budgetary effects would primarily stem from The cost of loans made to certain pension plans Grants to most plans that receive loans Provisions that would increase revenues, including modifying the required distribution rules for certain tax-favored assets Areas of significant uncertainty include Predicting the long-term financial positions for the multiemployer plans that would receive loans and grants Predicting how lenient the PRA would be in forgiving loans Predicting the assumptions about plans’ financial positions used in plan applications

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