Pension & Benefits News PBGC updates premium rates for 2019
Thursday, November 1, 2018

PBGC updates premium rates for 2019

By Pension and Benefits Editorial Staff

The Pension Benefit Guaranty Corporation (PBGC) has updated the premium rates for 2019. Specifically, the per-participant flat-rate premium rate for single-employer plans increases to $80 (up from $74 in 2018). For multiemployer plans, the rate is $29 (up from $28 in 2018). The Bipartisan Budget Act of 2015 (P.L. 114-74) provided the increase in the single-employer rate, according to the PBGC. The increase in the multiemployer rate is due to indexing.

For plan years beginning in 2019, the variable rate premium for single-employer plans is $43 per $1,000 of unfunded vested benefits, which is an increase from the 2018 rate of $38. The PBGC explains that $4 of the increase was provided in The Bipartisan Budget Act of 2015 and $1 resulted from indexing.

The variable-rate premium is capped for 2019 at $541 times the number of participants (up from the 2018 cap of $523). Note that small employer plans (generally fewer than 25 employees) may be subject to a lower cap.

The PBGC adds that, after 2019, all rates are subject to indexing. There are no scheduled increases, other than the indexing, for years after 2019.

SOURCE: PBGC website, Premium Rates webpage.

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