PBGC Annual Charge Ticks up in 2010
October 19, 2009 (PLANSPONSOR.com) - Defined benefit
sponsors will see their per-participant insurance premiums to
the Pension Benefit Guaranty Corp. (PBGC) go up by $1 next
year.
Business Insurance reported a federal law mandating
a premium adjustment to reflect changes in the national
average weekly wage during the prior year will bump the
annual figure from $34 to $35.
In fiscal 2008, the last year for which information
is available, the PBGC collected about $1.17 billion in
base premiums in its single-employer insurance program;
$241 million in variable-rate premiums, which are paid by
employers with underfunded plans; and $57 million in
termination premiums, Business Insurance said.
The PBGC relies on the premium income to help pay
pension benefits to those in plans the agency takes over
from an ailing employer.
Fred Schneyer
editors@plansponsor.com