Pension & Benefits News PBGC updates premium rates for 2021
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Friday, November 20, 2020

PBGC updates premium rates for 2021

By Pension and Benefits Editorial Staff

The Pension Benefit Guaranty Corporation (PBGC) has updated the premium rates for 2021. Specifically, the per-participant flat-rate premium rate for single-employer plans increases to $86 (up from $83 in 2020). For multiemployer plans, the rate is $31 (up from $30 in 2020).

For plan years beginning in 2021, the variable rate premium for single-employer plans is $46 per $1,000 of unfunded vested benefits, which is an increase from the 2020 rate of $45.

The variable-rate premium is capped for 2021 at $582 times the number of participants (up from the 2020 cap of $561). 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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