Practitioners
Premium Rates
Flat premium rates
The per-participant flat premium rate for plan years beginning in 2012 is $35 for single-employer plans and $9 for multiemployer plans.
Variable premium rate
The variable-rate premium for single-employer plans for plan years beginning in 2012 is $9 per $1,000 of unfunded vested benefits. Multiemployer plans do not pay a variable-rate premium, only the flat-rate premium.
Historical information
Premium rates for single-employer and multiemployer plans have increased a number of times since PBGC's establishment in 1974. For most of PBGC's history, premium increases required an act of Congress. However, beginning in 2007, the per-participant flat premium rates are adjusted automatically for inflation based on changes in the national average wage index. The rates for 2007 and later plan years are shown below:
|
Per Participant Rate for Flat-Rate Premium |
||
|---|---|---|
|
Plan years beginning in |
Single-Employer Plans |
Multiemployer Plans |
|
2012 |
$35
|
$9 |
|
2011 |
$35
|
$9
|
|
2010 |
$35
|
$9
|
|
2009 |
$34
|
$9
|
|
2008 |
$33
|
$9
|
|
2007 |
$31
|
$8
|
For a history of the premium rates charged under the single-employer program since 1974, see Table S-39 of the 2010 data tables; for a history of the rates charged under the multiemployer program, see Table M-16 of the 2010 data tables.
Termination premiums
For certain distress or involuntary terminations, a special termination premium must be paid to PBGC for three years. For more information, see Termination Premiums.
