PBGC premium rates to increase for 2020

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PBGC has announced 2020 premium rates for single-employer and multiemployer plans. The rates for both types of plans are indexed to reflect inflation based on changes in the national average wage index (as issued by the Social Security Administration). Note that the rates for single-employer plans for the years 2015 through 2019 were set by law (see our FYI Alert from November 2, 2015 ).

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Premium rates

The announced rates for 2020 and 2019 are shown in the following comparative tables.

Single-employer plan rates

Per-participant flat rate Variable rate per $1,000 UVBs Variable rate per-participant cap
2020 $83 $45 $561
2019 $80 $43 $541

Multiemployer plan rates

Year Per-participant flat rate
2020 $30
2019 $29


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.

Volume 42 | Issue 87

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