The Pension Benefit Guaranty Corporation (PBGC) on Oct. 13 issued the premium rates for 2024.
2024 Premium Rates
The PBGC determined the premium rates applicable for 2024 plan years in accordance with the indexing rules provided in Section 4006 of ERISA, as amended by The SECURE 2.0 Act of 2022 (SECURE 2.0).
The 2024 rates are higher than those the PBGC set for 2023. While the 2024 rates rose from the previous year at a more modest rate than they did from 2022 to 2023, the increase from 2023 to 2024 was still bigger than that from 2021 to 2022.
The rate for variable-rate premium (VRP) per $1,000 of unfunded vested benefits is the outlier: the 2024 rate is unchanged from the 2023 rate. This is because it is no longer indexed. From 2020 to 2023, all premium rates and the VRP cap were subject to indexing. However, starting in 2024, the VRP rate will no longer be indexed. All other premium rates, as well as the VRP cap, will continue to be indexed after 2023.
The PBGC’s Premium Rates web page has been updated to reflect these updates. A complete history of premium rates is here.
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