By Pension and Benefits Editorial Staff
The Pension Benefit Guaranty Corporation (PBGC) has posted the 2020 Comprehensive Premium Filing Instructions (including the illustrative form) on its website. In the Instructions, the PBGC states that the filing requirements for 2020 are almost identical to the 2019 filing requirements. However, the instructions have been updated for the increase of the flat-rate premiums, the variable rate premium, and the cap on variable rate premium amounts, and to simplify the reporting requirements concerning lump-sum windows and annuity purchases. In addition, the PBGC reinstated a question about lump-sum windows for retirees. The PBGC has also clarified the rules about when and how premiums are prorated, eliminated the requirement to include the date the plan administrator certified the filing in the XML file when using private-sector software, added information in the instructions about coverage determination requests, clarified that, for a plan that ceases PBGC coverage during the plan year, the date to be reported as the “date plan year ends” is still the end of the plan year, clarified the rules about the situations that result in the participant count date being the first day of the premium payment year instead of the last day of the prior premium payment year, and provided additional examples.
On its website, the PBGC notes that the Instructions do not reflect the changes to the way premiums are determined for certain plans sponsored by cooperative and small employer charities (CSEC plans) as provided by Division O, the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), enacted as part of the Further Consolidated Appropriations Act, 2020 (P.L. 116-94). The PBGC states that premium-related guidance for those plans will be issued separately.
The PBGC reminds filers that premium payment instructions can always change and advises filers to review its Premium Payment Instructions and Addresses webpage each year before sending a payment.
Source: PBGC website.
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