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PBGC 2019 Premium Rates to Increase

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Volume 41 | Issue 77

 

PBGC has announced 2019 premium rates for single-employer and multiemployer plans. The rates for single-employer plans reflect the premium hikes in the Bipartisan Budget Act of 2015 (see our November 2, 2015 FYI Alert); the rates for multiemployer plans reflect the increase under the Multiemployer Pension Reform Act of 2014 to $26 for 2015 with inflation increases thereafter (see our January 12, 2015 For Your Information).

Single-Employer Plan Rates

The announced rates for 2019 are highlighted in bold in our comparative table, which includes rates for after 2019 as set under the 2015 Bipartisan Budget Act changes.

Year

Per-participant flat rate

Variable rate per $1,000 UVBs

Variable rate per-participant cap

2017

$69

$34

$517

2018

$74

$38

$523

2019

$80

$43

$541

After 2019

$80 indexed

$43 indexed

$541 indexed

 

Multiemployer Plan Rates

The multiemployer rate, like the single employer rate, is indexed to reflect inflation based on changes in the national average wage index, rounded to the nearest dollar. On this basis for 2019, the multiemployer premium rate rises to $29 per participant.

In Closing

Our For Your Reference, a wallet-sized booklet showing retirement plan and other benefit limits and various Social Security and Medicare key figures, will be available shortly from your consultant.

 

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