IntroductionReturn to Top
PBGC premium forms are used to pay premiums to the Pension Benefit Guaranty Corporation (PBGC) as required by sections 4006 and 4007 of the Employee Retirement Income Security Act, as amended (ERISA), and the PBGC's premium regulations (29 CFR Parts 4006 and 4007). There are two kinds of premiums: the flat-rate premium, which applies to all plans, and the variable-rate premium, which applies only to single-employer plans.
Every plan covered under section 4021 of ERISA must make a premium filing each year, either by filing Form 1 or Form 1-EZ (whichever applies to the plan) or by filing electronically. Single-employer plans that file Form 1 must also file Schedule A. Those three forms are issued in the PBGC's Premium Payment Package, which can be found on the PBGC's website (www.pbgc.gov). The Premium Payment Package also contains other important premium-related information that you may want to refer to. This booklet (the Estimated Premium Payment Package) contains a fourth form -- Form 1-ES -- that large plans use to make estimated flat-rate premium payments. Estimated payments may also be made using electronic filing instead of Form 1-ES.
Our new electronic premium filing and payment system called "My Plan Administration Account" ("My PAA") is accessible through the PBGC's website (www.pbgc.gov). Plan administrators and other plan professionals who choose to use My PAA can coordinate the electronic preparation, signing, and submission of premium filings without the need for sending paper forms back and forth between consultants and plan officials. My PAA makes it possible to deliver premium filings to the PBGC instantaneously with the click of a mouse and get an immediate filing receipt. See p. 10 of this booklet for details.
Form 1-ES Filing RequirementReturn to Top
A plan that was required to pay premiums for 500 or more participants for the plan year preceding the premium payment year must pay the flat-rate premium early in the premium payment year. Because the participant count often is not available until later in the premium payment year, we permit filers to make estimated payments using electronic filing or Form 1-ES. (In addition, we do not assess late payment penalties for estimates that are too low if they meet "safe harbor" requirements, discussed below.) Form 1-ES (or the electronic equivalent) must be filed, and payment made, by the First Filing Due Date -- generally, the last day of the second full calendar month in the premium payment year. (For the first full plan year following a change in plan year, the First Filing Due Date is the 30th day after the adoption date of a plan amendment changing the plan year, if later.)
If your due date would fall on a weekend or Federal holiday, your premium filing will be considered timely if you file by the next business day.
The Form 1-ES filing deadlines for 2005 are shown in the following table.
| Premium Form 1-ES Year Due | Payment Filing Begins Date |
| 01/01/2005 | 02/28/2005 |
| 01/02 - 02/01/2005 | 03/31/2005 |
| 02/02 - 03/01/2005 | 05/02/2005* |
| 03/02 - 04/01/2005 | 05/31/2005 |
| 04/02 - 05/01/2005 | 06/30/2005 |
| 05/02 - 06/01/2005 | 08/01/2005* |
| 06/02 - 07/01/2005 | 08/31/2005 |
| 07/02 - 08/01/2005 | 09/30/2005 |
| 08/02 - 09/01/2005 | 10/31/2005 |
| 09/02 - 10/01/2005 | 11/30/2005 |
| 10/02 - 11/01/2005 | 01/03/2006* |
| 11/02 - 12/01/2005 | 01/31/2006 |
| 12/02 - 12/31/2005 | 02/28/2006 |
* NOTE: If your filing is not made by this date, penalty and interest will be calculated from the last day of the preceding month rather than the following business day -- e.g., from Saturday 4/30/2005 rather than Monday 5/2/2005.
Filing Method and Filing DateReturn to Top
You may make your estimated premium filing and payment (if by check, with your premium form) by hand, mail, commercial delivery service, or electronically. The discussion below describes the rules for filings other than electronic filings. You can find detailed rules on filing methods and on how we determine your filing date for electronic filings (as well as for other filings) in Part 4000 of our regulations (available on the PBGC's website, www.pbgc.gov). See p. 10 for information about how to file electronically using My PAA, our new electronic premium filing method.
For filings other than electronic filings, your filing date is the date you send your filing, provided you meet certain requirements that are summarized below. If you do not meet these requirements, your filing date is the date we receive your submission. However, if we receive your submission after 5:00 p.m. (our time) on a business day, or anytime on a weekend or Federal holiday, we treat it as received on the next business day. (If you file your submission by hand, your filing date is the date of receipt of your hand-delivered submission at the proper address.)
Filings by mail. If you file your submission using the U.S. Postal Service, your filing date is the date you mail your submission by the last collection of the day, provided the submission: (1) meets the applicable postal requirements; (2) is properly addressed; and (3) is sent by First-Class Mail (or another class that is at least equivalent). (If you mail the submission after the last collection of the day, or if there is no scheduled collection that day, your filing date is the date of the next scheduled collection.) If you meet these requirements, we make the following presumptions:
Legible postmark date. If your submission has a legible U.S. Postal Service postmark, we presume that the postmark date is the filing date.
Legible private meter date. If your submission has a legible postmark made by a private postage meter (but no legible U.S. Postal Service postmark) and arrives at the proper address by the time reasonably expected, we presume that the metered postmark date is your filing date.
Filings using a commercial delivery service. If you file your submission using a commercial delivery service, your filing date is the date you deposit your submission by the last scheduled collection of the day for the type of delivery you use (such as two-day delivery or overnight delivery) with the commercial delivery service, provided that the submission meets the applicable requirements of the commercial delivery service and is properly addressed, and the delivery service meets one of the requirements listed below. If you deposit it later than that last scheduled collection of the day, or if there is no scheduled collection that day, your filing date is the date of the next scheduled collection. The delivery service must meet one of the following requirements:
Delivery within two days. It must be reasonable to expect your submission will arrive at the proper address by 5:00 p.m. on the second business day after the next scheduled collection; or
Designated delivery service. You must use a "designated delivery service" under section 7502(f) of the Internal Revenue Code (Title 26, U.S.C.). Our website, www.pbgc.gov, lists those designated delivery services. You should make sure that both the provider and the particular type of delivery (such as two-day delivery) are designated.
Disaster ReliefReturn to Top
From time to time, when major disasters occur, the PBGC grants disaster relief by waiving late filing penalties for certain plans. Disaster Relief Announcements are available on the PBGC's website, www.pbgc.gov (under "Legal Information & FOIA" "Laws & Regulations" "Disaster Relief Announcements"). If your plan is covered by a PBGC Disaster Relief Announcement for this premium filing, follow the instructions in the Disaster Relief Announcement and check the Disaster Relief box at the top of Form 1-ES.
InterestReturn to Top
If the estimated premium paid by the First Filing Due Date is less than 100 percent of the flat-rate amount due for the premium payment year, there will be a charge for interest on the difference between the two amounts. Interest cannot be waived and is not subject to the safe harbor rules for penalties described below. Interest accrues at the rate imposed under section 6601(a) of the Internal Revenue Code (the rate for late payment of taxes) and is compounded daily. These rates are available on the PBGC's website (www.pbgc.gov).
Penalty; Safe Harbor RulesReturn to Top
If the estimated premium paid by the First Filing Due Date is less than 100 percent of the flat-rate amount due for the premium payment year, there may be a late payment penalty. However, there are "safe harbor" rules for avoiding the penalty (but not the interest). No penalty will be charged if you did not make an estimated premium payment because you erroneously reported fewer than 500 participants for the plan year preceding the premium payment year. In addition, you can avoid the penalty if the estimated premium payment you make by the First Filing Due Date is at least equal to the lesser of:
For purposes of determining whether a penalty is due, the participant count "erroneously reported" refers to the premium filing (or last amended filing) for the plan year preceding the premium payment year made to the PBGC by the First Filing Due Date.
Note that if you take a credit for a short 2005 plan year, as explained under "Credits and Refunds" below, the amount of the credit is counted toward meeting the safe harbor requirement, the same as any other credit. Thus, if the amount you pay with Form 1-ES, plus all credits, is at least equal to the safe harbor amount, the safe harbor requirement will be met.
Change of Address and Request to Stop Receipt of Premium Forms and InstructionsReturn to Top
Be sure to check the address change box in item 1 or 2 if the plan sponsor's or plan administrator's name or address has changed.
If your plan's premium filings are prepared by a consultant, you may not need to receive your own copy of PBGC premium forms and instructions. If you do not want to receive premium forms and instructions next year, check the box in item 1. An election not to receive the forms and instructions does not relieve the plan administrator of the obligation to file.
DefinitionsReturn to Top
"Participant" in a plan means an individual (whether active, inactive, retired, or deceased) with respect to whom the plan has benefit liabilities.If the plan does not have a separate cashout provision for zero benefits but does have a mandatory cashout of small benefit amounts (e.g., benefits less than $5,000), terminated non-vested participants are deemed to be cashed out in the same manner as terminated vested participants. If the plan is silent as to the timing of actual cashouts of terminated vested participants, the plan is deemed to read "as soon as practicable" and the terminated non-vested participants are deemed to be cashed out immediately upon termination of employment. If the plan specifies a date as of which actual cashouts of terminated vested participants take place (e.g., on the first day of the next month), that rule also would apply to deemed cashouts of terminated non-vested participants. These rules do not apply if, despite plan language, the plan has an obvious pattern or practice of delaying distributions for long periods of time.
For example, suppose a calendar-year plan provides that if a participant terminates employment and the participant's vested benefit has a value of less than $5,000, the plan will pay the vested benefit to the participant in a lump sum as of the first of the month following termination of employment. Suppose further that no plan provisions specifically address payment of benefits upon termination of employment by non-vested participants. If a participant with a non-vested accrued benefit terminates employment on December 15, 2004, the participant will be included in the participant count as of December 31, 2004 (because the cashout is deemed to occur on January 1, 2005, the first of the month following termination of employment). If, as is typically the case for a calendar year plan, the plan's premium snapshot date for 2005 is December 31, 2004, a flat-rate premium must be paid for this participant for 2005.
If a non-vested individual incurs a break in service in a service computation period that coincides with the plan year preceding the premium payment year, we treat the individual as not being a participant for purposes of determining the premium for the premium payment year. For example, suppose a calendar-year hours-of-service plan requires more than 500 hours of service in a service computation period to avoid a break in service, and a non-vested participant in the plan earns 440 hours of service in the service computation period ending December 31, 2004. The PBGC would treat the individual as not being a participant for purposes of the plan's 2005 premium. (For more detail, see the amendment to the premium regulations' definition of "participant," published in the Federal Register on December 1, 2000, at 65 FR 75160.)
"Plan sponsor" means the employer(s), employee organization, association, committee, joint board of trustees, or other entity that establishes or maintains a plan.
"Plan administrator" means the plan administrator (person or entity) specifically designated as such by the terms of the plan or, if no plan administrator is so designated, the plan sponsor.
Plan mergers and plan consolidations are transactions in which one or more transferor plans transfer all of their assets and liabilities to a transferee plan and disappear (because they become part of the transferee plan). However, there are important differences between the two kinds of transactions. In a merger, the transferee plan is one that existed before the transaction. In a consolidation, the transferee plan is a new plan that is created in the consolidation. Thus, the plan that exists after a consolidation follows the premium filing rules for new plans. In particular, it need not make an early premium payment with Form 1-ES (no matter how many participants any of the transferor plans had for the prior year(s)), it may not use the alternative calculation method, and its filing due date is subject to the special rules for new plans. On the other hand, the transferee plan in a merger follows the normal rules for preexisting, ongoing plans.
In a spinoff, the transferor plan transfers only part of its assets and/or liabilities to the transferee plan. The transferee plan may be a new plan that is created in the spinoff, or it may be a pre-existing plan that simply receives part of the assets and/or liabilities of the transferor plan.
Transfers From Disappearing PlansReturn to Top
If a plan other than yours ceased to exist in connection with any transfer of assets or liabilities from that plan to your plan since the last premium filing, check the "Yes" box in item 3(c). If you check "Yes," enter in the spaces provided the EIN/PN of each plan that ceased to exist in connection with the transfer of any assets or liabilities to your plan. Also enter the effective date and type of each transfer. The types of transfers are explained above. The effective date of a transfer is determined based on the facts and circumstances of the particular situation. (For transfers subject to section 414(l) of the Code, report the date determined under 26 CFR 1.414(l)- 1(b)(11).)
Example: The merger agreement between Plans A and B provides that participants of Plan A will cease accruing benefits under Plan A and begin coverage and benefit accruals under Plan B as of January 1, 2005, and that the obligation to pay benefits to Plan A participants will pass from Plan A to Plan B as of that date. The agreement also provides that Plan A's assets will be transferred to Plan B's account as soon as practicable. The transfer actually occurs on February 17, 2005. The effective date of the transfer is January 1, 2005.
If you need to report transfers from more than one plan, attach a separate sheet listing the EIN/PN of each additional plan and the effective date and type of each transfer.
You do not need to report any transfer in this item unless the transferor plan ceased to exist in connection with the transfer -- i.e., transferred all of its assets and liabilities to your plan or to two or more plans including your plan. You also do not need to report a transfer in this item if you have no reasonable way of determining whether the transferor plan ceased to exist in connection with the transfer.
Credits; Proration for Short Plan YearsReturn to Top
In general
In item 7 of Form 1-ES, you may claim the amount of any credit you are entitled to: (1) any available credit from item 17 of your 2004 Form 1-EZ or Form 1 (or from an equivalent electronic filing), (2) any estimated shortyear credit (as explained in the following paragraphs), and (3) any other available credit. You must attach an explanation of any credit you claim in item 7, other than a credit from item 17 of your 2004 Form 1-EZ or Form 1 (or from an equivalent electronic filing).
Proration for short plan years PBGC rules allow premium payers to pay a prorated premium for certain short plan years:
The proration is based on the number of full and partial months in the short plan year. Alternatively, you may pay a full year's premium and either (1) request that the PBGC compute and pay a partial refund or (2) claim a credit in the next year's premium filing. (No premium proration is allowed where a plan disappears by merger or consolidation into another plan.)
Estimated premium payments may also be prorated. The short year need not have ended by the time you pay a prorated premium, but if the plan year turns out to be longer than you anticipated, you will have to make up any premium underpayment (which will be subject to interest and penalties).
However, there is a penalty safe-harbor rule for estimated flat-rate premium payments that are prorated for a short plan year resulting from a change in plan year. The safe harbor applies where the amendment changing the plan year has been adopted, but the short year has not ended, by the First Filing Due Date, and later events result in a plan year longer than anticipated because the plan year change does not take place. Any penalty arising from reliance on the amendment is waived for the period from the First Filing Due Date to the Final Filing Due Date. (There is no waiver for interest.)
To pay a prorated estimated premium, you first determine the estimated premium without proration, then subtract a credit that brings the premium down to the prorated amount:
12 minus number of months in short year
12
For example, suppose the plan year of your singleemployer plan has been changed by amendment from a calendar year to a year beginning July 15, effective July 15, 2005. Assume that you choose to pay an estimated flat-rate premium for the plan year beginning January 1, 2005, based on your 2004 participant count of 600. Thus your estimated flat-rate premium, calculated as if there were no short-year proration, would be $11,400. This is the amount you would enter in item 6 of Form 1-ES for the plan year beginning January 1, 2005. If you choose to prorate your estimated premium, you would determine your short-year credit by multiplying $11,400 by 5/12. (The number of full and partial months in your short year -- i.e., January through July of 2005 -- is 7, so the numerator of the fraction is 5 -- i.e., 12 minus 7.) This gives you a short-year credit of $4,750 (for the five months of August through December of 2005), which you would enter in item 7 of Form 1-ES. (You would also attach an explanation of the short year proration to your Form 1-ES). Assuming you have no other credits, you would pay $6,650 (i.e., $11,400 minus $4,750) with your Form 1-ES.
Amended FilingsReturn to Top
If you discover after you have filed the 2005 Form 1-ES that you have made an error, you must file another 2005 Form 1-ES to correct your filing. Check the box in the heading of the Form 1-ES to indicate that this is an amended filing. Fill in the Form 1-ES as you would for an original filing. Enter the corrected premium in item 6. In item 7, enter the sum of the credits you previously claimed in that item plus the amount you paid with your original estimated filing. The amount due with the amended filing should appear in item 8. This should equal the difference between the new total estimated premium due and the new total credits. (If the amended estimate is lower than the original estimate, the amount due will be zero.) Submit your amended Form 1-ES with payment for any amount due.
Printing or Copying Premium FormsReturn to Top
The premium forms are in Optical Character Recognition (OCR) format. This enables the PBGC to process your plan information quickly and accurately. We will accept the original forms provided in this package; forms provided by a vendor that has received PBGC approval for an automated (computer-generated) version of the form; and forms downloaded from the PBGC website (www.pbgc.gov). We will also accept photocopies of the forms; please make sure the copies are clear and properly aligned on the page so that the OCR equipment can read them. The forms you file must have original signatures.
To achieve the best results when printing computer-generated or downloaded forms, use a laser or inkjet printer with resolution of 300 DPI (dots per inch) or higher. Please make sure that you have adequate toner in your printer cartridge. Thermal or dot matrix (9 or 24 pin) printers are not recommended for printing the premium forms. Do not use any printing options, such as "Fit to Page," that may tend to enlarge or reduce the size of the image. Please make sure no part of the form is missing after it is printed.
If More Than One Plan Year Begins in 2004 or 2005Return to Top
References in these instructions and on Form 1-ES to the 2004 plan year (and to filings and notices for the 2004 plan year) should be considered to refer to your plan's most recent complete plan year. For example, a plan with a short plan year could have two plan years beginning in calendar 2005. When such a plan makes its premium filing(s) for its second 2005 plan year, the references in these instructions and on Form 1-ES to the 2004 plan year (and to filings and notices for the 2004 plan year) should be considered to refer to the plan's first 2005 plan year (and to filings and notices for that plan year), because that is the plan's most recent complete plan year. Similarly, if your plan had two plan years beginning in calendar 2004, the references in these instructions and on Form 1-ES to the 2004 plan year (and to filings and notices for the 2004 plan year) should be considered to refer to the plan's second 2004 plan year, which is the plan's most recent complete plan year.
Payment InstructionsReturn to Top
Indicate in item 8(b) whether you are paying your estimated premium by check or electronic transfer. If you pay by check, write the plan's EIN/PN (from item 3(a) and (b) of the form) and the date the premium payment year commenced (PYC) on the check and send the check with Form 1-ES. If you pay by electronic transfer, make the transfer as described in item 2.d. under "CONTACTS" on p. 2.
Report the EIN/PN from item 3(a) and (b), and the date the premium payment year commenced (PYC), in the payment ID line of the electronic transfer in the format "EIN/PN: XX-XXXXXXX/XXX PYC: MM/DD/YY."
To ensure proper credit, you must file a separate Form l-ES and make a separate estimated premium payment for each plan. Do not combine estimated premiums for different plans in one payment. Send the completed Form l-ES to the address in item 2.a. or 2.b. under "CONTACTS" on p. 2.
If You Need Additional FormsReturn to Top
To obtain additional sets of the 2005 Form 1-ES or copies of the 2005 Estimated Premium Payment Package (or any other PBGC premium forms or instructions), or for help with questions about filing Form l-ES or making electronic transfers or with other premium-related questions or requests, contact us as described in item 3. under "CONTACTS" on p. 2.
If you are a pension practitioner serving many covered plans and wish to receive a bulk shipment of the Estimated Premium Payment Package and Form 1-ES, use the order blank on the inside back cover of this Estimated Premium Payment Package. PBGC's 2005 forms and instructions also are available through the offices of the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor listed on the inside back cover.
Additional InstructionsReturn to Top
Clearly print or type information in the boxes. The plan administrator must sign and date the certification at the bottom of the form. Beneath the signature line, print or type the name of the individual who signs and provide a daytime telephone number.
Your filing should be sent without a cover letter. If you need to submit additional information with your filing, it should be in an attachment.
Online Premium Filing with My PAAReturn to Top
Introduction to My PAAReturn to Top
My Plan Administration Account (My PAA) is a secure, Web-based application that enables you to electronically submit premium filings and payments to PBGC.
Using My PAA, you can easily and accurately submit any type of PBGC premium filing for plan years beginning in 2004 and later. In addition, by setting up an "e-filing team" within My PAA, you can collaborate online with your colleagues or clients to prepare, review, authorize, and submit filings with payments. Team members electronically "route" filings to each other for input and authorization.
Advantages of e-filing include:
How to Get Started with My PAAReturn to Top
Each plan that will use My PAA to prepare and submit premium filings online must determine the person who will be responsible for coordinating the overall online filing process, which includes setting up the plan within My PAA and inviting others to join the plan's e-filing team. This person is called the Filing Coordinator.
Once the Filing Coordinator for a plan has been determined, he or she registers to use My PAA as described in Step 2 below. If you will serve as the Filing Coordinator for several plans, you will be able to add other plans to your account after you complete the registration process for the first plan (see Step 4 below). You need only one account, to which you can add an unlimited number of plans.
Note that if you will not be fulfilling the role of Filing Coordinator, then you should not register to use My PAA as described in Step 2 below. You should wait until you receive an e-mail from My PAA on behalf of the Filing Coordinator with instructions on how to register (see Step 3 below).
When you register to use My PAA, you will provide information about yourself and one of the plans for which you will be the Filing Coordinator. After you complete the registration process, you will have a My PAA account that will include the plan you submitted when you registered.
You're my PAA account will include the following information:
To register for My PAA:
The completion of a typical filing, including signatures and payment authorizations, often requires input from two or more people. Where paper filings are routed from person to person within an office or mailed between offices, e-filings can be accessed through My PAA by anyone who has been authorized to do so.
This group of people that will use My PAA to provide input for a specific plan's premium filings is called that plan's "e-filing team." E-filing teams are established by the Filing Coordinator.
Once a Filing Coordinator registers to use My PAA, he or she can invite other people to use My PAA to contribute to a plan's premium filings. Using My PAA, the Filing Coordinator enters information for each person who needs to be on the team, assigning them one or more "e-filing permissions," which determine the e-filing tasks that each person will be allowed to perform for the plan. These tasks include:
To invite other people to be on your plan's e-filing team:
Once the Filing Coordinator enters the applicable information, My PAA will send the invitee an e-mail on behalf of the Filing Coordinator. If the invitee does not already have a My PAA account, the e-mail will include instructions on how to establish a My PAA account. When the account is established, the plan for which the person was invited will be listed on the "home page." If the invitee already has a My PAA account, the plan will be listed on the "home page" the next time he or she accesses My PAA.
Once you have registered to use My PAA (either by registering as a Filing Coordinator or by being invited by a Filing Coordinator), you can add other plans to your account. You should only add plans for which you will fulfill the role of the Filing Coordinator. If you are not the Filing Coordinator for a plan, that plan can only be added to your account when the Filing Coordinator invites you to join that plan's e-filing team.
To add each additional plan:
Once the Filing Coordinator has set up the plan's e-filing team, any team member can initiate a draft e-filing for the plan. My PAA will walk you through a step-by-step process to create this draft. On the first step, you will identify the type of filing to be submitted (estimated or final) as well as the type of plan (singleemployer or multiemployer) for which the filing is being submitted. The information entered in each step determines the content of the successive steps, for example:
The person who starts the e-filing need not enter all of the information requested. That person should only complete as much information as possible and then save the draft e-filing. Any missing information can be entered later by the appropriate person (e.g., the actuary).
Once a draft e-filing is started, e-filing team members can electronically "route" it to each other so that individual contributions can be made to it. The person routing the filing to another member of the e-filing team can include comments and instructions for the person to whom the filing is being routed.
When a filing is routed to another person, My PAA will send that person an e-mail (with instructions if entered) notifying them that they have been routed a filing requiring them to take action and that they are now "holding" that filing. Only the team member who "holds" a filing is able to take action on it. Actions include editing the filing, signing it as a plan administrator or enrolled actuary, authorizing payment for it, and submitting it to PBGC.
All signatures and payment authorizations for an e-filing are acquired electronically from appropriate e-filing team members. Once a draft e-filing is created, My PAA will list the required signature(s) and payment authorization that must be obtained before it can be submitted to PBGC. Those e-filing team members who have been granted permission by the Filing Coordinator to electronically sign the e-filing or electronically authorize payment for it will do so from within My PAA.
Note that the Filing Coordinator has the option of taking back possession of an e-filing from any of the other team members if the Filing Coordinator believes this is necessary.
If the premium filing to be submitted to PBGC includes a premium amount due, you must use My PAA to make this payment. This means that an e-filing team cannot send paper checks or Fedwires to pay for e-filings. Rather, all e-filings must be paid using one of the following three electronic payment methods, which are selected from within My PAA:
Automated Clearing House (ACH) -- This payment method involves the electronic transfer of funds from an account you specify to a PBGC account. You specify the account by entering the account number and bank routing code.
Electronic Check -- This is the electronic equivalent to writing a paper check. It involves entering the check number of a (voided) paper check to conduct an electronic transfer of funds. Funds are transferred from the plan sponsor's checking account to a PBGC account.
Credit Card -- My PAA currently accepts Visa and MasterCard as payment options. Please note that when you use a credit card to pay a premium, you will be charged a convenience fee (which is passed on to the credit card processor) of 2.87 percent of the total premium amount and that there is a $99,999.99 limit (including the convenience fee).
Whichever one of the three e-payment methods is ultimately selected, premium payment funds are securely transferred through the Internet when the e-filing is submitted to PBGC.
All of the following conditions must be fulfilled before My PAA will allow an e-filing team to electronically submit an e-filing to PBGC:
Once all of the conditions are met, the Filing Coordinator or the person who has been authorized as the Plan Administrator can submit the e-filing and e-payment (if one is due) to PBGC.
Once an e-filing and any associated e-payment are submitted to PBGC, My PAA will display an electronic receipt. This receipt includes the date and time the e-filing was received by PBGC, a confirmation number, and data entered into the e-filing. This online receipt can be accessed in My PAA by any e-filing team member. (Note: The "Received Date and Time" that appears on the receipt is the exact moment that the e-filing's data "hits" PBGC's server in Washington, D.C. Rarely will it take more than a few minutes for this data to hit our server after being submitted.)
Each individual who contributes to e-filings for one or more plans must establish a personal account in My PAA. Personal accounts are established only once, but information can be added to them as needed. There are two ways that a personal account can be established:
Every individual's personal account functions the same way, despite the way it was established. Every individual's personal account keeps track of the following information:
Questions about My PAA?Return to Top
If you have questions about e-filing with My PAA, please send an e-mail message to premiums@pbgc.gov or call PBGC's toll-free practitioner number, 1-800-736-2444, and select the "premium" option. Note: TTY/TDD users may call the Federal Relay Service toll-free at 1-800-877-8339 and ask to be connected. To get started using My PAA, please visit PBGC on the Web at www.pbgc.gov.
In addition to being able to obtain PBGC premium forms and instructions from the PBGC (see item 3. under "CONTACTS" on p. ii), you may obtain our forms and instructions through the following offices of the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor:
| CALIFORNIA | FLORIDA | GEORGIA | ILLINOIS |
San Francisco 94105 71 Stevenson Street Suite 915 (415) 975-4600 Pasadena 91106 1055 E. Colorado Boulevard Suite 200 (626) 229-1000 |
Plantation 33324 8040 Peters Road Building H, Suite 104 (954) 424-4022 |
Atlanta 30303 61 Forsyth Street SW Suite 7B54 (404) 562-2156 |
Chicago 60606 200 West Adams Street Suite 1600 (312) 353-0900 |
| KENTUCKY | MARYLAND | MASSACHUSETTS | MICHIGAN |
Fort Wright 41011-2664 1885 Dixie Highway Suite 210 (859) 578-4680 |
Silver Spring 20910 1335 East West Highway Suite 200 (301) 713-2000 |
Boston 02203 JFK Building Room 575 (617) 565-9600 |
Detroit 48226-3211 211 West Fort Street Suite 1310 (313) 226-7450 |
| MISSOURI | NEW YORK | PENNSYLVANIA | TEXAS |
Kansas City 64105-5148 1100 Main Street Suite 1200 (816) 426-5131 St. Louis 63103 1222 Spruce Street Room 6.310 (314) 539-2693 |
New York City 10004 33 Whitehall Street Suite 1200 (212) 607-8600 |
Philadelphia 19106-3317 Curtis Center 170 S. Independence Mall West Suite 870 West (215) 861-5300 |
Dallas 75202-5025 525 South Griffin Street Room 900 (214) 767-6831 |
| WASHINGTON | |||
Seattle 98101-3212 1111 Third Avenue Suite 860 (206) 553-4244 |
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NOTE: Schedule 1ES does not contain any line instructions. The instructions provided are from Form 1 and any item numbers refer to item number on the Form 1.
For a single-employer plan with one contributing sponsor, enter the name and address of the contributing sponsor. For a single-employer plan with two or more contributing sponsors that are all in a single controlled group, enter the name and address of the parent of the controlled group or, if there is no parent, of the largest member of the controlled group (whether or not the parent or largest member is a contributing sponsor).
For a single-employer plan with two or more contributing sponsors that are not all in a single controlled group, first identify the controlled group, or contributing sponsor that is not in a controlled group, that has the most participants in the plan. If you identify a contributing sponsor that is not in a controlled group, enter the name and address of that contributing sponsor. But if you identify a controlled group, then enter the name and address of the parent of that controlled group or, if there is no parent, of the largest member of that controlled group (whether or not the parent or largest member is a contributing sponsor).
For a multiemployer plan, enter the name and address of the association, committee, joint board of trustees, or other entity that establishes or maintains the plan.
Make sure you report the plan sponsor's name and address correctly, especially if there has been a change in the last year. If the plan sponsor's address or name has changed since your last filing, check the first box in the upper right hand corner of item 1.
It is very important that the address shown in item 1 be correct.
If your plan's premium filings are prepared by a consultant, you may not need to receive your own copy of PBGC premium forms and instructions. If you do not want to receive premium forms and instructions next year, check the second box in the upper right hand corner of item 1. An election not to receive the forms and instructions does not relieve the plan administrator of the obligation to file.
NOTE: Schedule 1ES does not contain any line instructions. The instructions provided are from Form 1 and any item numbers refer to item number on the Form 1.
If the name and address of the plan administrator is the same as that of the plan sponsor, check the second box in the upper right hand corner of item 2 and skip to item 3. Otherwise, enter the name and address of the plan administrator. If the plan administrator's address or name has changed since your last filing, check the first box in the upper right hand corner of item 1.
It is very important that the plan administrator's name and address be correct, especially if there has been a change in the last year. This is the address we will use to mail your 2006 Premium Payment Package and, as applicable, 2006 Estimated Premium Payment Package.
NOTE: Schedule 1ES does not contain any line instructions. The instructions provided are from Form 1 and any item numbers refer to item number on the Form 1.
Item 3(a) EIN For The Plan Sponsor Enter the EIN for the plan sponsor identified in item 1.
Item 3(b) Plan Number Enter the Plan Number (PN) for the plan.
Item 3(c) Transfers From Disappearing Plans If a plan other than yours ceased to exist in connection with any transfer of assets or liabilities from that plan to your plan since the last premium filing, check the 'Yes' box in item 3(c). If you check 'Yes,' enter in the spaces provided the EIN/PN of each plan that ceased to exist in connection with the transfer of any assets or liabilities to your plan. Also enter the effective date and type of each transfer. The types of transfers are explained above. The effective date of a transfer is determined based on the facts and circumstances of the particular situation. (For transfers subject to section 414(l) of the Code, report the date determined under 26 CFR 1.414(l)- 1(b)(11).)
Example: The merger agreement between Plans A and B provides that participants of Plan A will cease accruing benefits under Plan A and begin coverage and benefit accruals under Plan B as of January 1, 2005, and that the obligation to pay benefits to Plan A participants will pass from Plan A to Plan B as of that date. The agreement also provides that Plan A's assets will be transferred to Plan B's account as soon as practicable. The transfer actually occurs on February 17, 2005. The effective date of the transfer is January 1, 2005.
If you need to report transfers from more than one plan, attach a separate sheet listing the EIN/PN of each additional plan and the effective date and type of each transfer.
You do not need to report any transfer in this item unless the transferor plan ceased to exist in connection with the transfer -- i.e., transferred all of its assets and liabilities to your plan or to two or more plans including your plan. You also do not need to report a transfer in this item if you have no reasonable way of determining whether the transferor plan ceased to exist in connection with the transfer.
NOTE: Schedule 1ES does not contain any line instructions. The instructions provided are from Form 1 and any item numbers refer to item number on the Form 1.
This item should be completed to report a change in EIN or PN since your last premium filing. The EIN of the plan sponsor or the plan's PN may change for a number of reasons.
Item 4(a) Change In EIN Enter the previous EIN in the space provided.
Item 4(b) Change In PN? Enter the previous PN in the space provided.
Item 4(c) Effective Date Enter the effective date of the change in EIN/PN.
NOTE: Schedule 1ES does not contain any line instructions. The instructions provided are from Form 1 and any item numbers refer to item number on the Form 1.
Enter the complete name of the plan as stated in the plan document. For example, 'The ABC Company Pension Plan for Salaried Personnel.'
If a premium is overpaid for a plan, you may request that the overpayment be refunded or applied to the next year's premium for the plan.
If you request that an overpayment be applied to the next year's premium, you should claim the amount of the overpayment as a credit on the next year's premium filing for the plan.
A request for a refund must be made within the period specified in the applicable statute of limitations (generally six years after the overpayment was made). If there are unpaid premiums, interest, or penalties for your plan for prior years, you may request the PBGC to apply all or part of an overpayment toward payment of those unpaid prior year amounts.
If you request payment of a refund by electronic funds transfer, we will make the transfer through the automated clearing house (ACH) system.
Please note that ERISA does not provide for us to pay interest on premium overpayments.
Credits; Proration for Short Plan Years
In general
In item 7 of Form 1-ES, you may claim the amount of any credit you are entitled to: (1) any available credit from item 17 of your 2004 Form 1-EZ or Form 1 (or from an equivalent electronic filing), (2) any estimated short-year credit (as explained in the following paragraphs), and (3) any other available credit. You must attach an explanation of any credit you claim in item 7, other than a credit from item 17 of your 2004 Form 1-EZ or Form 1 (or from an equivalent electronic filing). Proration for short plan years PBGC rules allow premium payers to pay a prorated premium for certain short plan years:
The proration is based on the number of full and partial months in the short plan year. Alternatively, you may pay a full year's premium and either (1) request that the PBGC compute and pay a partial refund or (2) claim a credit in the next year's premium filing. (No premium proration is allowed where a plan disappears by merger or consolidation into another plan.)
Estimated premium payments may also be prorated. The short year need not have ended by the time you pay a prorated premium, but if the plan year turns out to be longer than you anticipated, you will have to make up any premium underpayment (which will be subject to interest and penalties). However, there is a penalty safe-harbor rule for estimated flat-rate premium payments that are prorated for a short plan year resulting from a change in plan year. The safe harbor applies where the amendment changing the plan year has been adopted, but the short year has not ended, by the First Filing Due Date, and later events result in a plan year longer than anticipated because the plan year change does not take place. Any penalty arising from reliance on the amendment is waived for the period from the First Filing Due Date to the Final Filing Due Date. (There is no waiver for interest.) To pay a prorated estimated premium, you first determine the estimated premium without proration, then subtract a credit that brings the premium down to the prorated amount:
In determining the numerator of the fraction, any partial month in the short plan year must be counted as a full month.
For example, suppose the plan year of your single-employer plan has been changed by amendment from a calendar year to a year beginning July 15, effective July 15, 2005. Assume that you choose to pay an estimated flat-rate premium for the plan year beginning January 1, 2005, based on your 2004 participant count of 600. Thus your estimated flat-rate premium, calculated as if there were no short-year proration, would be $11,400. This is the amount you would enter in item 6 of Form 1-ES for the plan year beginning January 1, 2005. If you choose to prorate your estimated premium, you would determine your short-year credit by multiplying $11,400 by 5/12. (The number of full and partial months in your short year -- i.e., January through July of 2005 -- is 7, so the numerator of the fraction is 5 -- i.e., 12 minus 7.) This gives you a short-year credit of $4,750 (for the five months of August through December of 2005), which you would enter in item 7 of Form 1-ES. (You would also attach an explanation of the short year proration to your Form 1-ES). Assuming you have no other credits, you would pay $6,650 (i.e., $11,400 minus $4,750) with your Form 1-ES.