October 2009 Bulletin, “For 2010, IRS Dollar Limits and Social Security Wage Base Unchanged; Only PBGC Single Employer Premium to Increase, No Change in PBGC Guarantee Limit Anticipated”

Abstract

This Bulletin reports indexed figures for 2010 that are of interest to sponsors of retirement plans.

The 2010 Internal Revenue Service (IRS) dollar limits for qualified plans and other tax-favored retirement plans are determined using consumer price index (CPI) data released on October 15, 2009. Because the CPI did not increase from the third quarter of 2008 to the third quarter of 2009 (it declined), the IRS dollar limits will not change in 2010. No increase in the CPI also means the Social Security wage base and earnings test will not change in 2010.

For 2010, the per capita flat-rate Pension Benefit Guaranty Corporation (PBGC) premium for single employer plans will increase by one dollar and the per capita flat-rate premium for multiemployer plans will be unchanged. The PBGC has not yet released its monthly maximum guarantee for 2010, but because there was no change in the "old law Social Security wage base" ($79,200), Segal does not expect the maximum benefit guaranteed by the PBGC under private-sector single employer pension plans that terminate during 2010 to change from the 2009 level.

Download the full publication as a PDF

Back