New PBGC Premiums and Changes to Annual PBGC Premium Filings
The Pension Benefit Guaranty Corporation (PBGC) is an independent government agency that protects pension benefits of more than 44 million American workers in more than 27,500 private-sector defined benefit pension plans. All ERISA plans are required to submit annual premiums to the PBGC, which in turn guarantees a specified level of pension benefits when a plan terminates or become insolvent. For plan years beginning on or after January 1, 2007, all plans are required to submit their PBGC filings electronically.
The PBGC has announced several changes for plan years beginning in 2013, including:
- Premium Increases: The per-participant flat-rate premium increased from $9.00 to $12.00 for multiemployer plans and from $35.00 to $42.00 for single-employer plans, and the variable-rate premium is now capped at $400.00 times the number of participants.
- Increases in Guaranteed Benefits: The yearly maximum guaranteed for a 65-year-old retiree increased from $56,000.00 to almost $57,500.00. The PBGC maximum guarantee is set by federal law and is higher for people older than age 65, and lower for people who retire earlier or choose survivor benefits.
- New and changed data elements for the annual PBGC filings.
For more information about PBGC premiums, guaranteed benefits, and filings, please contact your Trust Fund counsel.
By Ezekiel D. Carder