PBGC 2017 Premium Rates to Increase

Volume 39 | Issue 119

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PBGC has announced 2017 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 2017 are highlighted in bold in our comparative table, which includes rates for 2018 and future years 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

2016

$64

$30

$500

2017

$69

$34

$517

2018

$74

2017 rate indexed plus $4

$517 indexed

2019

$80

2018 rate indexed plus $4

$517 indexed

After 2019

$80 indexed

2019 rate indexed

$517 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. For 2017, this index raises the multiemployer premium rate to $28 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.