By Pension and Benefits Editorial Staff
The Pension Benefit Guaranty Corporation (PBGC) has updated the premium rates for 2020. Specifically, the per-participant flat-rate premium rate for single-employer plans increases to $83 (up from $80 in 2019). For multiemployer plans, the rate is $30 (up from $29 in 2019).
For plan years beginning in 2020, the variable rate premium for single-employer plans is $45 per $1,000 of unfunded vested benefits, which is an increase from the 2019 rate of $43.
The variable-rate premium is capped for 2020 at $561 times the number of participants (up from the 2019 cap of $541). However, small employer plans (generally fewer than 25 employees) may be subject to a lower cap.
Note 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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