The Pension Benefit Guaranty Corp. is starting to update the pension insurance premium structure.
The agency has proposed a rule to implement pension insurance premium provisions included in the Deficit Reduction Act of 2005 and the Pension Protection Act of 2006.
Since 1991, sponsors of single-employer defined benefit pension plans have been paying a flat rate of $19 per participant.
Sponsors of multiemployer plans have been paying $2.60 per participant since 1989.
The DRA has increased the rate to $30 per participant for single-employer plans and to $8 per participant for multiemployer plans.
The DRA also adjusted a variable-rate premium paid by certain small plans and created a “termination premium” for PBGC-covered plans that are shutting down.
The new proposed rule, which appears today in the Federal Register, deals with issues such as how to count plan participants, how to apply inflation adjustments and types of terminations affected by the new termination premium.
Comments on the proposed rule are due April 23.
A copy of the proposed rule is on the Web at Document Link