PBGC Outlines Online Premium Payment Process

October 15, 2014 (PLANSPONSOR.com) – The Pension Benefit Guaranty Corp. (PBGC) has issued certain instructions for ensuring premium payments are received and posted accurately.

The PBGC reminds pension plan sponsors that they may use the My Plan Administration Account (My PAA) system to electronically submit pension plan premium filings and payments to the PBGC. However, payment outside of My PAA is permitted for any filing and is required if multiple filings are uploaded at the same time—i.e., in a batch upload.

The PBGC says separate payments must be submitted for each plan under supervision by a given sponsor, and sponsors should not combine premiums for two or more plans into one payment. The preferred payment option outside of My PAA is www.Pay.gov, which is fast, secure and free for premium payers, according to the PBGC. For fast, automatic posting to the premium account, the payment must reference the plan’s employer identification number (EIN), plan number (PN) and the plan year commencement date.

If a sponsor sends a paper check, the PBGC requests that a completed paper check voucher also be included in the mailing. Here are the methods used for current and prior year premium filings and payments made outside of My PAA:

  • www.Pay.gov – Go to the website and locate the PBGC Premium Insurance Payments form. The sponsor will be automatically directed to a secure site and should choose Pension Benefit Guaranty Corp. from the agency list. The sponsor will need the plan’s EIN, PN and plan year commencement date to complete the payment. Note that if a Pay.gov payment is blocked by the sponsor’s bank, PBGC’s Automated Clearing House (ACH) company ID number is 1601000603. Transactions on bank statements will appear as “PBGC Premium Payment”s.
  • By mail – Sponsors should use the following mailing address if using the U.S. Postal Service to send premium payments: Pension Benefit Guaranty Corp., P.O. Box 105758, Atlanta, GA 30348-5758.
  • FedEx, UPS and other carriers not serving P.O. boxes – Paper checks or correspondence via a delivery service that does not deliver to a P.O. box should go to: Bank of America, 1075 Inner Loop Road (2nd Floor), Atlanta, GA 30337. The address should include the supplemental line “Attn: PBGC Box 105758.”
  • Electronic fund transfers other than on www.Pay.gov – Funds may also be transferred electronically via JPMorgan Chase Bank, N.A., using the following information: ABA 071000013; Account 656510666; and “PBGC” as the designated beneficiary.

More information on PBGC premium payment methods and requirements is here.