PBGC updates premium rates for 2014

The Pension Benefit Guaranty Corporation (PBGC) has updated the premium rates for 2014. Specifically, the per-participant flat-rate premium rate for single-employer plans increases to $49 (up from $42 in 2013). For multiemployer plans, the rate is $12 (unchanged from 2013).

For plan years beginning in 2014, the variable rate premium for single-employer plans is $14 per $1,000 of unfunded vested benefits, which is an increase from the 2013 rate of $9. The PBGC explains that the $5 increase is the result of indexing and a scheduled $4 increase provided in the Moving Ahead for Progress in the 21st Century Act (MAP-21; P.L.112-141). The variable-rate premium is now capped at $412 times the number of participants (up from the 2013 cap of $400). Note that small employer plans may be subject to a lower cap.

Source: PBGC Notice of Premium Rates, November 6, 2013.

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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