PBGC Premiums Rise Again in 2019; Other Minor Filing Changes Noted

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Pension plan sponsors lately have come to expect an increase in their bill for Pension Benefit Guaranty Corporation (PBGC) premiums as each new plan year begins, and 2019 is no different.

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A new, 70-page “Comprehensive Premium Filing Instructions for 2019 Plan Years” guide from the federal agency provides information on what plans owe and how to report the various data elements required for premium payments.

The Basics

There are two kinds of PBGC annual premiums: the flat-rate premium, which applies to all plans, and the variable-rate premium, which applies only to single-employer plans. Payment of annual premiums to the PBGC by every private-sector defined benefit plan covered under Section 4021 of the Employee Retirement Income Security Act of 1974 (ERISA) is required by ERISA and PBGC regulations.

Electronic filing is mandatory for all covered plans. The PBGC in the 2019 guide also included information about how plan administrators may certify their filing manually instead of electronically.

Due dates are outlined in a table in the “When to File” section, starting on Page 6 of the guide. In general, if a filing is not made by the due date, late payment charges will apply, including both interest and penalty

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