PBGC Updates Info and Rates Relevant to Premiums and Charges

The Pension Benefit Guaranty Corporation (PBGC) has updated certain information and rates relevant to premiums.

Premium Funding Targets

The PBGC has updated the information it makes available concerning the interest rates used to determine the "premium funding target" (that is, the present value of vested benefits) for variable-rate premium (VRP) purposes unless the plan has an election in effect to use the alternative premium funding target.

The valuation rules are different for plan years beginning after 2007 than for plan years beginning before 2008, and the site discusses those rules and those differences.

This part of the PBGC site also provides rates relevant to premiums for 2023, as well as those for past years going back as far as 1988. 

Late Premium Payment Interest Charges

The PBGC also has updated the late premium payment interest charges. 

Under ERISA, interest on late PBGC premiums accrue at the rate imposed under Internal Revenue Code Section 6601(a); the IRS publishes those rates, which are changed quarterly. These rates are also used to compute certain interest charges applicable when the PBGC serves as trustee to a plan, such as the rates used to determine the amount of interest the PBGC assesses on late PBGC premiums.

Following are the interest charges on late premium payments for 2023: 

 

 

 

 

 

 

 

Not Updated Right Now 

There are some interest rates the PBGC updates on a quarterly basis; there are no updates at this time. These include: 

• ERISA 4044 annuities, rates used to determine the present value of annuities for involuntary or distress terminations, as well as valuing benefits under multiemployer plans after a mass withdrawal.  
• Late or defaulted withdrawal liability, rates multiemployer plans use to charge withdrawn employers if their withdrawal liability payments are late or in default, unless rules adopted by the plan provide otherwise.