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PBGC Sets 2015 Premium Rates

The Pension Benefit Guaranty Corporation (PBGC) on Oct. 24 announced the premium rates for 2015. Some rates increased sharply, while other increases were far more modest.

Flat-rate Premiums

The per-participant flat premium rate for plan years beginning in 2015 is $57 for single-employer plans (up from a 2014 rate of $49) and $13 for multiemployer plans (up from a 2014 rate of $12).

Variable-rate Premiums

For plan years beginning in 2015, the variable-rate premium (VRP) for single-employer plans is $24 per $1,000 of unfunded vested benefits, up from a 2014 rate of $14.

For 2015, the VRP is capped at $418 times the number of participants (up from a 2014 cap of $412). Plans sponsored by small employers (generally fewer than 25 employees) may be subject to an even lower cap. Multiemployer plans do not pay a VRP.

The Bipartisan Budget Act of 2013 calls for the VRP rate to increase another $5 starting with 2016 (on top of indexing).