PBGC Updates Premium Filing Instructions, Can Accept Electronic Filings
The Pension Benefit Guaranty Corporation (PBGC) has announced that it has made the Comprehensive Premium Filing Instructions for 2017 plan years (including the illustrative form) available
, and also that its My PAA system is ready to accept
electronic premium filings for plan years beginning in 2017.2017 Premium Filing Instructions
The filing requirements for 2017 are almost identical to the filing requirements for 2016, but the PBGC has made some changes. The key changes to note for 2017 relate to changes in premium rates:Flat-rate Premiums.
The per-participant flat-rate premium rate for single-employer plans is $69, up from $64. For multiemployer plans the rate is $28, up from $27.Variable-rate Premium.
The rate per $1,000 of unfunded vested benefits is $34, up from $30.
Cap on Variable-rate Premium. The MAP-21 cap on the variable-rate premium cap is $517 times the number of participants, up from $500 times the number of participants.
The PBGC also has added a new section providing additional guidance about determining premiums in a year when a plan is involved with a spinoff, merger or consolidation. It added this section because it has encountered several situations in which premiums for these plans were not determined properly.
Electronic Premium Filings
The PBGC provides the following reminders concerning electronic premium filings.
- Visit the PBGC website to confirm the payment addresses to use before submitting any payment because addresses are subject to change.
- Verify account number and routing number before paying online via My PAA or Pay.gov to prevent a “returned payment.” Also, if the account has an “ACH Debit Block,” provide the appropriate PBGC Company ID to the financial institution before submitting a payment so they may authorize the PBGC to debit the account.
- Update bookmarks to use “https” rather than “http” to improve security when accessing My PAA pages (e.g., the login page) because “http” will not work after a transition period of a few months.
- A week after the PBGC receives a filing, it will send an acknowledgement letter that includes processing results (e.g., amounts due, filing errors, etc.).
For additional information, see the following pages.