The Pension Benefit Guaranty Corporation (PBGC) has issued the premium rates for 2022. In a separate action, it also has announced that it will be extending its coverage opinion letter pilot program.
2022 Premium Rates
The PBGC determined the premium rates applicable for 2022 plan years in accordance with the indexing rules provided in Section 4006 of ERISA. The rates are higher than those set for 2021; 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 | 2022 | Change, 2021-2022 |
| Per participant rate for flat-rate premium | $74 | $80 | $83 | $86 | $88 | +$2 |
| Variable-Rate premium, rate per $1,000 of unfunded vested benefits | $38 | $43 | $45 | $46 | $48 | +$2 |
| Variable-Rate premium, per participant cap | $523 | $541 | $561 | $582 | $598 | +$16 |
| Per participant rate for flat-rate premiums, multiemployer plans | $28 | $29 | $30 | $31 | $32 | +$1 |
The PBGC’s Premium Rates web page has been updated to reflect these updates.
Coverage Opinion Letter Pilot Program
The PBGC also announced on Oct. 13 that it will be extending its pilot program under which employers may request, in certain circumstances, an opinion letter about whether a plan in the process of being created is likely to be covered by the PBGC. The program is intended to address two issues that affect whether such a plan is likely to be covered by PBGC:
- whether the plan sponsor is a professional service employer, or
- whether all participants in the plan are substantial owners.
The PBGC will be extending the pilot program until Sept. 30, 2022.
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