PBGC updates premium rates for 2015

The Pension Benefit Guaranty Corporation (PBGC) has updated the premium rates for 2015. Specifically, the per-participant flat-rate premium rate for single-employer plans increases to $57 (up from $49 in 2014). For multiemployer plans, the rate is $13 (up from $12 in 2014).
For plan years beginning in 2015, the variable rate premium for single-employer plans is $24 per $1,000 of unfunded vested benefits, which is an increase from the 2014 rate of $14. The PBGC explains that the $10 increase is provided in The Bipartisan Budget Act of 2013 (P.L.113-67). The PBGC adds that The Bipartisan Budget Act of 2013 calls for the variable rate premium rate to increase another $5 starting in 2016 (on top of indexing).

The variable-rate premium is now capped at $418 times the number of participants (up from the 2014 cap of $412). Note that small employer plans may be subject to a lower cap.

Source: PBGC Notice of Premium Rates, October 24, 2014.

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