Pension Smoothing – The Budget Gimmick That Will Not Die

Pension Smoothing – The Budget Gimmick That Will Not Die

The bipartisan infrastructure bill approved by the Senate on August 10 includes a number of budget gimmicks that help make it look fully “paid for.” One of the gimmicks is pension smoothing, which allows private companies to make smaller contributions to their defined-benefit pension plans, thereby endangering the plans’ financial viability over time.