Compliance October 19, 2009

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.
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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.

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The PBGC relies on the premium income to help pay pension benefits to those in plans the agency takes over from an ailing employer.

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