The costs of offering a defined benefit pension plan will increase next year.
The nation’s private pension plan insurer has announced the premium rates for 2020 plan years – yes, they’re higher. The Pension Benefit Guaranty Corporation (PBGC) has determined the premium rates applicable for 2020 plan years in accordance with the indexing rules provided in section 4006 of ERISA.
The per-participant rate for flat-rate premiums for single-employer plans will rise to $83 from $80 for the 2019 plan year. Variable rate premiums for those programs will increase to $45 per $1,000 UVBs (unfunded vested benefits), with a per participant cap of $561. For 2019, those rates were $43 and $541, respectively.
For multi-employer plans, the per-participant rate for flat-rate premium will rise to $30 from $29 in 2019.
The Premium Rates web page has been updated to reflect these updates.
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