The Pension Benefit Guaranty Corporation (PBGC) has set flat-rate and variable rate premiums for 2019.
Flat-Rate Premiums
The per-participant flat-rate premium for plan years beginning in 2019 is $80 for single-employer plans (up from the $74 2018 rate and the $69 2017 rate) and $29 for multiemployer plans (up the 2018 and 2017 rate of $28). The PBGC attributes the single-employer rate change to the Bipartisan Budget Act (BBA) of 2015, and the increase in the multiemployer rate to indexing.
Variable-Rate Premiums
For plan years beginning in 2019, the variable-rate premium (VRP) for single-employer plans is $43 per $1,000 of unfunded vested benefits (UVBs), up from a 2018 rate of $38 and the 2017 rate of $34. The PBGC says that $4 of the increase in the VRP rate is attributable to BBA 2015, and $1 of it is due to indexing.
For 2019, the VRP is capped at $541 times the number of participants (up from a 2018 cap of $523 and a 2017 cap of $517). Plans sponsored by small employers (generally fewer than 25 employees) may be subject to a lower cap.
Increases After 2019
After 2019, all rates are subject to indexing. There are no scheduled increases (other than indexing) for years after that.
Current and historical information regarding PBGC premium rates is available here.
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