The Pension Benefit Guaranty Corporation (PBGC) has issued the 2016 comprehensive premium filing instructions. The Office of Management and Budget has approved the instructions, and has posted them on the PBGC website.
The PBGC says that it made few changes from the 2015 filing instructions when it prepared the instructions for 2016. The key changes to note for 2016 relate to changes in premium rates and are as follows:
Flat-rate Premiums. The per-participant flat-rate premium rate for single-employer plans for 2016 is $64, up from the 2015 rate of $57. For multiemployer plans, the per-participant rate for 2016 is $27, $1 more than the 2015 rate.
Variable-rate Premium. The 2016 rate per $1,000 of unfunded vested benefits is $30, up from the 2015 rate of $24.
Cap on Variable-rate Premium. The MAP-21 cap on the variable-rate premium cap for 2016 is $500 times the number of participants, up rather sharply from the 2015 figure of $418 times the number of participants.
Also notable is that in the 2016 instructions, the PBGC has clarified the instructions for risk transfers, final premium filing, transfers from other plans and transfers to other plans.
The administrator of each pension plan covered under ERISA Section 4021 must annually file the prescribed premium information and pay the premium. Most private-sector defined benefit plans that meet tax qualification requirements are covered. It is possible to request a determination regarding whether a plan is covered, but simply making such a request does not extend the due date for any premium that is finally determined to be due. If a plan is covered, a premium filing must be mad even if no premium is owed.
The normal premium due date is the 15th day of the 10th full calendar month in the plan year (e.g., generally Oct. 15 for calendar-year plans).
The normal premium due date applies unless:
If the normal premium due date falls on a Saturday, Sunday or federal holiday, the due date is automatically extended to the next business day.
The PBGC says that it made few changes from the 2015 filing instructions when it prepared the instructions for 2016. The key changes to note for 2016 relate to changes in premium rates and are as follows:
Flat-rate Premiums. The per-participant flat-rate premium rate for single-employer plans for 2016 is $64, up from the 2015 rate of $57. For multiemployer plans, the per-participant rate for 2016 is $27, $1 more than the 2015 rate.
Variable-rate Premium. The 2016 rate per $1,000 of unfunded vested benefits is $30, up from the 2015 rate of $24.
Cap on Variable-rate Premium. The MAP-21 cap on the variable-rate premium cap for 2016 is $500 times the number of participants, up rather sharply from the 2015 figure of $418 times the number of participants.
Also notable is that in the 2016 instructions, the PBGC has clarified the instructions for risk transfers, final premium filing, transfers from other plans and transfers to other plans.
The administrator of each pension plan covered under ERISA Section 4021 must annually file the prescribed premium information and pay the premium. Most private-sector defined benefit plans that meet tax qualification requirements are covered. It is possible to request a determination regarding whether a plan is covered, but simply making such a request does not extend the due date for any premium that is finally determined to be due. If a plan is covered, a premium filing must be mad even if no premium is owed.
The normal premium due date is the 15th day of the 10th full calendar month in the plan year (e.g., generally Oct. 15 for calendar-year plans).
The normal premium due date applies unless:
- the plan is a new or newly covered plan,
- the plan year changed since last year, or
- all assets are distributed during the premium payment year pursuant to a standard termination.
If the normal premium due date falls on a Saturday, Sunday or federal holiday, the due date is automatically extended to the next business day.
- Log in to post comments