Government Affairs
The costs of offering a pension plan will increase next year.
The Pension Benefit Guaranty Corporation (PBGC) has determined the premium rates applicable for 2021 plan years in accordance with the indexing rules provided in Section 4006 of ERISA. The rates are higher than those set for 2020; most are slight increases, but the rate for the per-participant cap has risen more appreciably.
The rates are as follows:
| Rate | 2018 | 2019 | 2020 | 2021 | Increase, 2020-2021 |
| Per participant rate for flat-rate premium | $74 | $80 | $83 | $86 | +$3 |
| Variable-Rate premium, rate per $1,000 of unfunded vested benefits | $38 | $43 | $45 | $46 | +$1 |
| Variable-Rate premium, rate per $1,000 of unfunded vested benefits | $523 | $541 | $561 | $582 | +$21 |
| Variable-Rate premium, rate per $1,000 of unfunded vested benefits | $28 | $29 | $30 | $31 | +$1 |
The Premium Rates web page has been updated to reflect these updates.
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