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PBGC Now Accepting 2016 Premium Filings

The Pension Benefit Guaranty Corporation (PBGC) on Jan. 5 announced that it is ready to accept electronic premium filings for plan years beginning in 2016. It has completed work to prepare its “My Plan Administration Account” (My PAA), a secure Web-based application that enables pension plan professionals to electronically submit premium filings and payments to the PBGC to receive filings.
 
What’s New in My PAA

The PBGC has made the following changes to My PAA for 2016:

  • premium filings for 2016 may now be submitted via My PAA;
  • My PAA accounts that are not used regularly will be automatically deactivated (after any plans are removed). 
Premium Payment Instructions

The PBGC has also updated the filing instructions and requirements for 2016. http://www.pbgc.gov/prac/prem/filings/2016-premium-payment-instructions.... Following are the key changes it has made for 2016:

  • Flat-rate premiums — The per-participant flat-rate premium rate for single-employer plans is $64, up from $57. For multiemployer plans the rate is $27, up from $26.
  • Variable-rate premiums — The rate per $1,000 of unfunded vested benefits is $30, up from $24.
  • Cap on variable-rate premiums — The MAP-21 cap on variable-rate premiums is $500 times the number of participants, up from $418 times the number of participants.
The PBGC also has clarified the instructions for risk transfers, final premium filings, transfers from other plans, and transfers to other plans.

All Covered Plans Must File

Remember that the plan administrator of each pension plan covered under ERISA Section 4021 is required annually to file the prescribed premium information and pay the premium due. Most private-sector DB plans that meet tax qualification requirements are covered. If a plan is covered, the administrator must make a premium filing even if no premium is owed.