delete PART 4006—PREMIUM RATES
Regulation 29 CFR Part 4006 governs pension insurance premiums that covered defined benefit plans must pay to the Pension Benefit Guaranty Corporation (PBGC), a federal agency. Premiums consist of a flat-rate component per participant plus a variable-rate component based on the plan's unfunded vested benefits, with various exemptions and calculation rules applicable to different plan types and sizes.
This federal insurance mandate creates severe moral hazard, reducing employer incentives to properly fund pensions while imposing a hidden tax that ultimately lowers retiree benefits and increases business costs. The complex regulatory framework adds thousands of hours of compliance burden on businesses, disproportionately harming small firms. Constitutional federalism principles dictate that pension regulation belongs to the states, not the federal government, and private markets can provide more efficient, tailored pension risk solutions without distorting incentives or creating taxpayer bailout expectations.