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Compliance October 19, 2009
PBGC Annual Charge Ticks up in 2010
October 19, 2009 (PLANSPONSOR.com) - Defined benefit
sponsors will see their per-participant insurance premiums to
the Pension Benefit Guaranty Corp. (PBGC) go up by $1 next
year.
Reported by Fred Schneyer
Business Insurance reported a federal law mandating a premium adjustment to reflect changes in the national average weekly wage during the prior year will bump the annual figure from $34 to $35.
In fiscal 2008, the last year for which information is available, the PBGC collected about $1.17 billion in base premiums in its single-employer insurance program; $241 million in variable-rate premiums, which are paid by employers with underfunded plans; and $57 million in termination premiums, Business Insurance said.
The PBGC relies on the premium income to help pay pension benefits to those in plans the agency takes over from an ailing employer.