PBGC issues 2013 premium payment filing instructions

The Pension Benefit Guaranty Corporation (PBGC) has posted the 2013 Premium Payment Instructions (including illustrative forms) for defined benefit plan premium payments for the 2013 plan year to its website. In addition, the PBGC has announced that both the estimated flat-rate premium filings and the comprehensive premium filings for plan years beginning in 2013 may be electronically submitted through My Plan Administration Account (My PAA).

The PBGC highlights the changes made by Moving Ahead for Progress in the 21st Century Act (MAP-21; P.L.112-141) to premiums in the What’s New section of the Instructions. Specifically, the per-participant flat-rate premium rates for single-employer plans and for multiemployer plans increase to $42 and $12, respectively. The variable-rate premium is now capped at $400 times the number of participants. In addition, the PBGC explains that the instructions have been modified to clarify the impact of the MAP-21 stabilizations rules on the discount rates used to determine the premium funding target.

The comprehensive premium filing illustrative form has been reformatted to make room for revocations of the alternative premium funding target election for those plans that had previously elected to use the alternative premium funding target to determine unfunded vested benefits and that are now eligible to revoke the election and use the standard premium funding target. Thus, the flat-rate premium data requirements now appear on page 1 and the election/revocation is on page 2.

The PBGC also notes that it has added some new data items and removed a few data items. The new data items include a breakdown of the total premium funding target into three categories, a required contact name as part of the plan administrator data, the plan effective date that must now be reported by all plans, and the breakdown of premium credit information into two items. The PBGC has eliminated the need for filers to report the plan sponsor’s address and the payment method for paper filers, and has removed the requirement to check a box indicating a name or address change since the prior filing.

The 2013 PBGC Comprehensive Premium Payment Instructions

For more information, visit http://www.wolterskluwerlb.com/rbcs.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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