Pension & Benefits News PBGC updates premium rates for 2020
Tuesday, November 5, 2019

PBGC updates premium rates for 2020

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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