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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