The Pension Benefit Guaranty Corporation (PBGC) has raised the per-participant flat premium rates and the variable-rate premium for single-employer plans for plan years beginning in 2016. The PBGC made the announcement on Oct. 26.
The per-participant flat premium rate for plan years beginning in 2016 will be as follows:
The variable-rate premiums (VRPs) for single-employer plans beginning in 2016 will be $30 per $1,000 of unfunded vested benefits (UVBs), up from a 2015 rate of $24. This $6 increase reflects a $5 increase under the provisions of The Bipartisan Budget Act of 2013, as well as a $1 increase due to indexing.
For 2016, the VRP is capped at $500 times the number of participants (up from a 2015 cap of $418). Plans sponsored by small employers (generally fewer than 25 employees) may be subject to a lower cap.
Multiemployer plans do not pay a VRP.
Years after 2016
Note that all rates are subject to indexing for years after 2016. There are no scheduled increases (other than indexing) for years after 2016.
The per-participant flat premium rate for plan years beginning in 2016 will be as follows:
- single-employer plans: $64, up from a 2015 rate of $57 due to the provisions of The Bipartisan Budget Act of 2013; and
- multiemployer plans: $27, up from a 2015 rate of $26 due to indexing.
The variable-rate premiums (VRPs) for single-employer plans beginning in 2016 will be $30 per $1,000 of unfunded vested benefits (UVBs), up from a 2015 rate of $24. This $6 increase reflects a $5 increase under the provisions of The Bipartisan Budget Act of 2013, as well as a $1 increase due to indexing.
For 2016, the VRP is capped at $500 times the number of participants (up from a 2015 cap of $418). Plans sponsored by small employers (generally fewer than 25 employees) may be subject to a lower cap.
Multiemployer plans do not pay a VRP.
Years after 2016
Note that all rates are subject to indexing for years after 2016. There are no scheduled increases (other than indexing) for years after 2016.
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