January 7, 2014
The Bipartisan Budget Act of 2013 that was signed into law on December 26, 2013 significantly increases both the flat-rate and variable-rate single-employer Pension Benefit Guaranty Corporation (PBGC) premiums. Those increases are in addition to the premium increases introduced as part of 2012's Moving Ahead for Progress in the 21st Century Act (MAP-21).
PBGC premiums, unlike contributions to a pension plan, do not fund plan benefits or improve the plan's funded status. As a result, plan sponsors generally want to take steps to minimize the premiums payable.
This Spotlight discusses some strategies to minimize the amount paid for PBGC premiums, including the following: