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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