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.