The Pension Benefit Guaranty Corporation (PBGC) on Sept. 23 issued a Technical Update providing guidance on contribution receipts and variable rate premiums due in 2020.
Technical Update 20-02 concerns the timing of contribution receipts includable in the asset value used to determine variable-rate premiums due in 2020. The PBGC had announced on Sept. 21 that it intended to provide new flexibility for variable-rate premium filers.
The guidance explains that plan administrators that want to take advantage of the relief must amend their premium filing by Feb. 1, 2021, to revise the variable-rate premium data accordingly after eligible prior year contributions are received by the plan.
Once the amended filing is received, processed and reviewed, the excess of the original premium paid over the revised premium will be refunded or credited to the plan’s My PAA account, depending on which option the plan administrator chooses.
Plan administrators also must:
- include an explanation in the space provided as to why the premium amount reported in the amended premium filing is less than the amount reported in the original premium filing;
- enter “PBGC TU-20-2”; and
- report the date(s) and amounts of contributions included in the revised asset value that were not included in the asset value reported in the original filing.
Technical Update 20-02 revises guidance issued July 20, 2020, “COVID-19-Related Single-Employer Plan Sponsors and Administrators Questions and Answers.”
- Log in to post comments