Table of Contents
Payment of premiums to the Pension Benefit Guaranty Corporation (PBGC) is required by sections 4006 and 4007 of the Employee Retirement Income Security Act of 1974 (ERISA), and PBGC's Premium Regulations (29 CFR Parts 4006 and 4007).
There are two kinds of annual premiums: the Flat-rate Premium, which applies to all plans, and the Variable-rate Premium, which applies only to Single-employer Plans.
Every covered plan under ERISA section 4021 must make a premium filing each year. The due dates are described in the "When to File" section.
Electronic filing is mandatory for all plans. My Plan Administration Account (My PAA) is a secure web-based application that enables pension plan professionals to electronically submit premium filings to PBGC in accordance with PBGC's regulations. Electronic filings may be prepared using My PAA's data entry screens or with compatible private-sector software. See "How to File" section for more information. For more information on e-filing options, see Appendix 3.
This document provides information for plans paying premiums for plan years beginning in 2022, including instructions for each data element that must be reported.
Plan years beginning before 2022
If you are filing for a previous year or amending a filing for a previous year, you must follow the instructions for that year (available from the "Premium Filing" web page). However, because contact information and information about electronic funds transfers change periodically, the most recent information should be used instead of the information included in an instructions booklet for a prior plan year.
Defined terms
Appendix 1 provides definitions for terminology used in this document. In general, the defined terms are capitalized to signal the reader to refer to Appendix 1 for more information. The convention of capitalizing the defined terms is not followed for a few defined terms such as "participant," "we," "you," and "your." In addition, this convention is not followed on the illustrative form (i.e., in the "Data to be Submitted" section).
The filing requirements for 2022 are almost identical to the filing requirements for 2021. Here are the key changes to note for 2022:
Common filing errors
Appendix 3 provides detailed information about these errors. |
The Plan Administrator of each pension plan covered under ERISA section 4021 is required to annually file the prescribed premium information and pay the premium due in accordance with PBGC's Premium Regulations and instructions.
Most private-sector defined benefit plans that meet tax qualification requirements are covered1. If you are uncertain whether your plan is covered, we recommend you promptly request a determination by submitting a coverage determination form, available on PBGC's "Pension Insurance Coverage" web page.
If your plan is covered, you must submit a premium filing even if:
In certain specified situations, plans with Short Plan Years or Short Coverage Years pay a prorated premium. See "Premium Proration" section.
Note for Plans with Retroactive Effective Dates — PBGC coverage begins on the plan's effective date, regardless of when the plan is adopted. Thus, a 2022 filing is required for a plan with an effective date in 2022, even if that plan isn't adopted until after 2023 and regardless of whether a premium is owed for 2022.
If several unrelated employers participate in a program of benefits wherein the funds attributable to each employer are available to pay benefits to all Participants (i.e., a Multiemployer or Multiple-employer Plan), the Plan Administrator must file and pay premiums for the plan as a whole.
If separate plans are maintained for different groups of employees, regardless of whether each is maintained by the same employer or by employers that are part of the same controlled group, the Plan Administrator(s) must file and pay premiums separately for each plan.
You must continue to make premium filings and pay premiums through and including the plan year in which any of the following occurs:
1 A church plan that makes an irrevocable election under IRC § 410(d) to be subject to certain IRC § 401(a) tax qualification requirements (e.g., participation, vesting, funding) is covered by PBGC only if it chooses to be covered and notifies PBGC accordingly. See PBGC's "Pension Insurance Coverage" web page for information about this requirement.
2 PBGC encourages plans that believe coverage has ceased to request a determination as soon as possible. See PBGC's "Pension Insurance Coverage" web page for information about how to request a coverage determination.
3 The due date for the final filing may be accelerated for the plan year in which assets are distributed in satisfaction of Benefit Liabilities pursuant to a standard termination. See "When to File" section).
The following examples illustrate when the filing obligation ceases:
Example 1 — A calendar-year plan terminates in a standard termination with a termination date of September 29, 2021. On April 6, 2022, assets are distributed in satisfaction of all Benefit Liabilities. The Plan Administrator must file and make the premium payments for the 2021 and 2022 plan years. There is also an obligation to file a post-distribution certification (Form 501) as part the standard termination process. See § 4041.29 for additional information.
Example 2 — A plan with a plan year beginning July 1 and ending June 30 terminates in a distress termination with a termination date of April 27, 2022 (i.e., during the plan year beginning July 1, 2021). On July 6, 2022, a trustee is appointed to administer the plan under ERISA section 4042. Because a trustee was not appointed until after the beginning of the 2022 plan year, a premium filing and payment must be made for this plan for 2022 plan year.
This section describes when premium filings are due. A filing includes both the submission of required data and the payment of any required premium. In general, if a filing is not made by the due date, late payment charges will apply. Late payment charges include both interest charges and penalty charges. See "Late Payment Charges" section for more information on the ramifications of missing a deadline.
In most cases, premium filings are due on Normal Premium Due Date, (i.e., the 15th day of the 10th full calendar month in the plan year).4 If the Normal Premium Due Date falls on Saturday, Sunday or Federal Holiday,5 the due date is automatically extended to the next business day.6 The special situations for which premiums are due on a date other than the normal premium due are summarized in the next section.
The following table shows the Normal Premium Due Dates for plan years beginning in 2022:
| 2022 Normal Premium Due Dates | ||||
|---|---|---|---|---|
| Date Premium Payment Year Begins |
Normal Premium Due Date |
Date Premium Payment Year Begins |
Normal Premium Due Date |
|
| 1/1/2022 | 10/17/2022* |
|||
| 1/2/2022 - 2/1/2022 | 11/15/2022 | 7/2/2022 - 8/1/2022 | 5/15/2023 | |
| 2/2/2022 - 3/1/2022 | 12/15/2022 | 8/2/2022 - 9/1/2022 | 6/15/2023 | |
| 3/2/2021 - 4/1/2022 | 1/17/2023* | 9/2/2022 - 10/1/2022 | 7/17/2023* | |
| 4/2/2022 - 5/1/2022 | 2/15/2023 | 10/2/2021 - 11/1/2022 | 8/15/2023 | |
| 5/2/2022 - 6/1/2022 | 3/15/2023 | 11/2/2022 - 12/1/2022 | 9/15/2023 | |
| 6/2/2022 - 7/1/2022 | 4/17/2023 | 12/2/2022 - 12/31/2022 | 10/16/2023* | |
* The Normal Premium Due Date falls on a Saturday, Sunday or Federal Holiday, so the date shown above is the first business day following the actual due date.
4 The due date is the 15th day of the 10th full calendar month that begins on or after the first day of the Premium Payment Year. In situations involving a Short Plan Year, this due date may not be "in the plan year."
5 This extension does not apply to state or local holidays such as Patriots Day in Massachusetts or Emancipation Day in the District of Columbia.
6 See "Late Payment Charges" section for information on how late charges are determined if payment is made after an automatically extended due date.
In the situations noted below, premiums may be due on a date other than the Normal Premium Due Date:
The due dates for these situations are described below. For all of these situations, if the adjusted due date falls on a Saturday, Sunday or Federal Holiday, the due date is automatically extended to the next business day.
New and Newly Covered Plans top
In some cases, these first-time filers cannot have their filings ready by the Normal Premium Due Date. For example, consider a calendar year plan that is adopted November 1st with an effective date retroactive to January 1. Because the plan was adopted after the Normal Premium Due Date (October 17th), a later due date is warranted. This rule applies even if the New Plan was created as the result of a mid-year Spinoff from another plan.
To accommodate such plans, the due date for New and Newly Covered Plans is the latest of:
These rules are illustrated in the following examples:
Example 1 — Plan A, a calendar-year plan, was adopted August 1, 2022 with a retroactive effective date of January 1, 2022. Plan A is not a Continuation Plan or a Small Plan. The due date for Plan A's first premium filing is October 31, 2022 (90 days after August 1, 2022 is Sunday October 30th, so the due date moves to the next business day) because that date is later than the Normal Premium Due Date (October 17, 2022).
Example 2 — The situation for Plan B is identical to Plan A (see Example 1) except that the plan was adopted one month earlier (i.e., July 1, 2022). The normal due date for Plan B's first premium filing is October 17, 2022, the Normal Premium Due Date because that date is later than 90 days after the adoption date (September 29, 2022).
Example 3 — The situation for Plan C is identical to Plan A (see Example 1) except that the retroactive effective date was one year earlier (i.e., January 1, 2021). Because the effective date is in 2021, a premium filing is due for the 2021 plan year. That filing is due October 31, 2022 (90 days after the adoption date) because that date is later than the Normal Due Date for the 2021 plan year.
Because Plan C is not considered a New Plan for 2022, the regular due date rules apply which means the 2022 premium filing is due October 17, 2022 (two weeks before the 2021 premium is due).
Example 4 — A professional service employer maintains Plan D, a calendar plan year plan. From plan inception through September 30, 2022, Plan D never had more than 25 active Participants, and was not a covered plan under ERISA section 4021. On October 1, 2022, a few employees were hired and became covered by the plan resulting in a total active Participant count of 26 and therefore, the plan became a covered plan on that date. Plan D will continue to be a covered plan regardless of how many active Participants the plan has in the future. Note that the Premium Payment Year begins on January 1, 2022, even though the plan did not become covered until after that date. The due date for the plan’s first premium filing is December 30, 2022 (90 days after October 1, 2022) because the date is later than the Normal Premium Due Date (October 17, 2022).
See "Spinoffs, Mergers, and Consolidations" section for additional examples of how these types of transactions affect due dates.
Assets Distributed Pursuant to a Standard Termination top
For the Premium Payment Year in which all plan assets are distributed pursuant to a standard termination, it is possible that the employer will be out of business or plan records and personnel will not be available by the Normal Premium Due Date. To streamline the final premium payment with the other activities related to a standard termination, the due date for a plan in this situation is the earlier of:
Plans Affected by Certain Disasters top
When the IRS grants relief to certain taxpayers that are unable to meet filing deadlines because of a major disaster (e.g., a hurricane), the premium due date for plans in the IRS-designated disaster area is extended to the end of the relief period.
If your plan qualifies for disaster relief, you must notify PBGC on or before the end of the relief period. In general, this notification is done as part of the Comprehensive Premium Filing8. However, if you anticipate it will be difficult to submit the Comprehensive Premium Filing by the end of the relief period, you may notify us by email. See PBGC's Disaster Relief Announcement for more information.
When an expected premium filing is not received timely, PBGC typically sends a "past due filing notice" to the plan administrator. We appreciate that receiving such notices can be disconcerting in situations where the filer is eligible for disaster relief. But, until PBGC receives a filing or email indicating that your plan is subject to an extended due date because of disaster relief, PBGC does not know that there is a good reason the filing has not yet been submitted.
If your plan is eligible for disaster relief, you can stop these notices from being sent simply by letting PBGC know that your plan is eligible for disaster relief. To do so, just send an email in advance of the normal due date to premiums@pbgc.gov identifying the plan, the disaster, the applicable IRS Notice number, etc.
For a plan that changes its plan year, the filing due dates for the short year are unaffected by the change in plan year. However, for the first plan year under the new cycle, the due date is whichever is later:
The following examples show the due dates for plans changing plan years:
Example 1 — By plan amendment adopted on December 1, 2022, a plan changes from a plan year beginning January 1 to a plan year beginning June 1. This results in a Short Plan Year beginning January 1, 2022 and ending May 31, 2022. Premiums for the Short Plan Year are due October 17, 2022, the Normal Premium Due Date.
For the plan year beginning June 1, 2022, the premiums are due by the Normal Premium Due Date (March 15, 2023) because that is later than 30 days after the date the plan amendment changing the plan year was adopted (December 31, 2022).
Example 2 — By plan amendment adopted on January 7, 2023, and made retroactively effective to April 1, 2022, a plan changes from a plan year beginning on March 1 to a plan year beginning on April 1. For the March 1, 2022 - March 31, 2022 Short Plan Year, the premium is due December 15, 2022. For the new plan year beginning April 1, 2022, the due date is 30 days after the adoption of the plan amendment changing the plan year (February 6, 2023) because that is later than the Normal Premium Due Date (January 17, 2023).
7 The post-distribution certification (Form 501) is a document required to be submitted to PBGC as part of the standard termination process. See § 4041.29 for additional information.
8See line 20 and box at the top of the first page of the illustrative form in the "Data to be Submitted" section.
You can find detailed rules about filing due dates in PBGC's premium payment regulation (29 CFR Part 4007).
To make a complete premium filing, you must report certain required data and submit any required premium payment by completing and submitting a Comprehensive Premium Filing.
A list of the data that must be reported is included in the "Data to be Submitted" section. For simplicity, the required data elements are shown in a traditional "form" format. The purpose of the "form" is to provide a comprehensive list of data that must be submitted electronically. These instructions are written as if they related to the illustrative form (see "Description of Data Elements" section). The "form" is for illustrative purposes only.
Premium filings are submitted electronically through PBGC's e-filing application, My Plan Administration Account (My PAA).
You may prepare the filing directly using My PAA's data entry screens. Alternatively, you may use approved private-sector software to prepare a filing and then "upload" the data via My PAA. Approved private-sector software will convert your filing in an "XML" file that meets PBGC specifications.
Depending on how you choose to prepare electronic filings (My PAA data entry screens or private-sector software), the order in which the questions are asked may differ from the order shown on the forms. In addition, in some cases, the software may perform certain calculations instead of requiring that you manually enter each required data element.
The "Online Premium Filing (My PAA)" section of PBGC's website provides detailed, and often more up to date, information about My PAA.
Although e-filing of premium information through My PAA is mandatory, premium payments may be made either within My PAA or outside of My PAA. If you choose to pay within My PAA, your payment will be made by an electronic funds transfer using Automated Clearing House (ACH). If you pay outside of My PAA, you may pay by electronic funds transfer (ACH or Fedwire), paper check or on-line via www.pay.gov. Pay.gov is a free, and user-friendly Federal website from which you can make secure electronic payments directly to many Federal Agencies, including PBGC. We recommend using Pay.gov to minimize the potential for errors (e.g., incorrect account numbers).
Note re: debit blocks - If you are sending payment electronically, be sure to provide the PBGC Company ID to your financial institution before you submit your payment so they may authorize PBGC to debit your account. Without this authorization, your financial institution may reject the processing of your payment. A debit block is the most common reason for failed ACH payments, and the most common reason late premium payment penalties are assessed.
Currently, PBGC has two Company ID numbers, one for payments made within My PAA, and one for payments made outside of My PAA. Please refer to the payment instructions in My PAA or on PBGC's website for up-to-date information.
Additional information on payment options is included in Premium Filing Payment & Instructions web page.
Plan Participants must be counted because Flat-rate Premiums are based on the number of Participants, as are both caps on the Variable-rate Premium (MAP-21 Cap and Small Employer Cap). In addition, the number of Participants affects whether Variable-rate Premiums are based on current or prior (i.e., "lookback") year measurements. The date on which Participants are counted is called the "Participant Count Date."
In general, the Participant Count Date is the last day of the Prior Premium Payment Year. However, in the scenarios described below, it is the first day of the Premium Payment Year:
The following examples illustrate the determination of the Participant Count Date.
Example 1— An ongoing plan changes its plan year from a calendar year to a plan year that begins June 1, effective June 1, 2022. The Participant Count Date for the:
Example 2— A new calendar-year plan is adopted February 18, 2022, retroactively effective as of January 1, 2022. The Participant Count Date is January 1, 2022.
Example 3— A new calendar-year plan is adopted January 1, 2022, effective April 1, 2022. The Participant Count Date is April 1, 2022.
Example 4— A calendar-year plan that was not a covered plan under ERISA section 4021 becomes covered on May 31, 2022. The first day of the Premium Payment Year is January 1, 2022, and the Participant Count Date is January 1, 2022.
See "Spinoffs, Mergers, and Consolidations" section for additional examples of how these types of transactions affect the Participant Count Date.
For premium purposes, "Participant" means an individual (whether active, inactive, retired, or deceased) with respect to whom the plan has Benefit Liabilities as of the Participant Count Date. Beneficiaries and alternate payees are not counted as Participants. However, a deceased Participant will continue to be counted as a Participant if there are one or more beneficiaries or alternate payees who are receiving or have a right to receive benefits earned by the Participant.
An individual is not counted as a Participant after an insurer makes an irrevocable commitment to pay all Benefit Liabilities with respect to the individual or after all benefit liabilities with respect to the individual are otherwise distributed. In addition, a non-vested individual is not counted as a Participant after:
If the plan has a separate cashout provision for zero benefits, terminated non-vested Participants are deemed to be cashed out as of the date specified in the deemed cashout provision or, if no date is specified, as of the employment termination date. If the plan provides that zero benefit amounts will be deemed to be paid as soon as possible, terminated non-vested Participants will also be deemed to be cashed out as of the employment termination date.
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 $5,000 or less), 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 would also 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.
Example— Suppose a calendar-year plan provides that if a Participant terminates employment and the Participant's vested benefit has a value of $5,000 or less, 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, 2021, the Participant will be included in the Participant Count as of December 31, 2021 (because the cashout is deemed to occur on January 1, 2022, the first of the month following termination of employment). If, as is typically the case for a calendar-year plan, the plan's Participant Count Date for 2022 is December 31, 2021, a Flat-rate Premium must be paid for this Participant for 2022.
A non-vested individual ceases to be a Participant for premium purposes when the individual incurs a one-year break in service under the plan.
If the break in service occurs in a service computation period that coincides with the Prior Premium Payment Year, we treat the individual as not being a participant for purposes of determining the premium for the Premium Payment Year.
Example 1 — A calendar-year plan with five-year vesting provides that a Participant who performs 500 or fewer hours of service in a service computation period incurs a one-year break in service as of the last day of the computation period. The plan also provides that the annual service computation period begins on the anniversary of a Participant's date of hire. Consider an employee who was hired on December 1, 2016, and terminates employment on February 1, 2021. Further assume that this Participant does not perform more than 500 hours of service during the December 1, 2020 - November 30, 2021 computation period. This Participant incurs a one-year break in service on November 30, 2021. Since the break occurred before December 31, 2021 (the Participant Count Date for the 2022 premium), the individual would not be included in the Participant Count for 2022.
Example 2 — A calendar-year plan provides that a Participant who performs 500 or fewer hours of service in a service computation period incurs a one-year break in service as of the last day of the computation period. The plan also provides that the annual service computation period is the calendar year. Consider a non-vested employee who does not perform more than 500 hours of service during the 2021 calendar-year computation period. This Participant incurs a one-year break in service on December 31, 2021. Although the break occurs on the Participant Count Date for the 2022 premium, the individual would not be included in the Participant Count for 2022.
The Participant Count for the Premium Payment Year and the number of Participants reported for item 6 of Form 5500 for the Prior Premium Payment Year (e.g., the 2022 premium filing and the 2021 Form 5500) are generally determined as of the same date (i.e., the last day of the Prior Premium Payment Year). However, the two counts may differ. For example:
"Unfunded vested benefits" (UVBs) is the term used to describe the underfunding measure on which the Variable-rate Premium is based (i.e., the excess, if any, of the Premium Funding Target, over the fair market value of plan assets). This section describes how and when the Premium Funding Target and fair market value of plan assets are determined for this calculation.
Note for CSEC plans — the instructions below relate to Single-employer plans other than CSEC plans. Appendix 4 provides information about where the special rules for CSECs override these instructions.
In general, Variable-rate Premiums are based on UVBs for the Premium Payment Year. However, Small Plans are subject to a Lookback Rule, under which the Variable-rate Premium for the Premium Payment Year is based on UVBs for the Prior Premium Payment Year - for example, under the Lookback Rule, the 2022 Variable-rate Premium is based on UVBs for 2021 (the Lookback Year).
The lookback rule first applied for 2014 plan years. At that time Small Plans were given automatic approval to permanently opt out of the Lookback Rule (i.e., to use current year UVBs to determine the Variable-rate Premium). Most Small Plans chose to do so. Those plans must continue to use current year UVBs to determine the Variable-rate Premium unless and until they seek and receive permission from PBGC to start using the Lookback Rule in the future. Information about how to seek such permission is covered later in this "Which year's UVBs" section.
New and Newly Covered Small Plans top
The Lookback Rule doesn't apply to New and Newly Covered Small Plans because such plans don't have a covered prior year to look back to. So, special rules apply. If a New or Newly Covered Plan is Small and:
These plans will be permitted to opt out of using the Lookback Rule without first seeking PBGC permission, the first time the Lookback Rule would otherwise apply.
Opting out of the Lookback Rule Starting with 2022 top
Small Plans reporting UVBs for the first time are cautioned to be careful to ensure the data reported in the Variable-rate Premium section of the filing are entered correctly because if the reported UVB Valuation Date9 is within the Premium Payment Year, we will expect all future filings to be completed using current year UVBs to determine the Variable-rate Premium.
Note for Small Plans with year-end valuation dates — It is not practical for a Small Plan with a year-end valuation date to opt out of the Lookback Rule. For example, consider a Small Plan with a calendar year plan year. Opting out of the Lookback Rule would mean measuring UVBs on December 31st, two and a half months after the October 15th due date.
Requesting permission to use (or not use) the Lookback Rule top
As noted above, PBGC permission is required if:
Such requests must be submitted at least 60 days before the due date using one of the following options:
PBGC will review such requests based on the facts and circumstances and will grant such requests only for good cause in appropriate circumstances. PBGC will not grant requests made solely to reduce premiums.
If you do not receive a determination within 30 days of making the request, please call us at 1-800-736-2444, as you will need the determination to make a timely premium filing.
9 See line (7)(c)(3) of the illustrative form in the "Data to be Submitted" section.
UVBs are measured on the funding valuation date (i.e., the measurement date for determining the minimum required contribution) for the applicable plan year (i.e., either the Premium Payment Year or the Lookback Year, depending on whether the Lookback Rule applies). Regardless of whether the Lookback Rule applies, this date is called the UVB Valuation Date to distinguish it from the Participant Count Date (see "How to Count Participants" section).
So, for plans using the Lookback Rule, the UVB Valuation Date is the valuation date used to determine the minimum required contribution (i.e., "the funding valuation date") for the Lookback Year. For all other plans, the UVB Valuation Date is the funding valuation date for the Premium Payment Year.
ExamplesThe following examples illustrate these rules:
Example 1— Plan A, a calendar year plan, is not a Small Plan and therefore, in accordance with ERISA 303 must have a beginning of year valuation date. Plan A's Variable-rate Premium for 2022 is based on UVBs for 2022 (i.e., the Premium Payment Year) measured as of 1/1/2022. This result is not dependent on whether the plan is a Continuation Plan.
Example 2 — Plan B is a pre-existing Small Plan that did not opt out of the Lookback Rule in 2014 and to date has not submitted a request to PBGC regarding the Lookback Rule. Plan B has a calendar year plan year and a beginning of year valuation date. Plan B's Variable-rate Premium for 2022 is based on UVBs for the plan year beginning in 2021 measured as of 1/1/2021.
Example 3 — Plan C is a New Small Plan with a calendar year plan year and a created as the result of a non-De Minimis Spin-off on 1/1/2022 and is therefore considered a Continuation Plan for 2022. As a Continuation Plan, Plan C is not subject to the Lookback Rule for 2022 (because there is no prior year to look back to). That means UVBs are measured as 1/1/202210.
Example 4 — Plan D is a pre-existing Plan with a calendar year plan year and a beginning of year valuation date. Plan D had a Participant count greater than 100 for all years from 2016 through 2021, but due to attrition, its 2022 participant count is 98. Thus, Plan D is now subject to the Lookback Rule. That means Plan D's Variable-rate Premium for 2022 is based on UVBs for the plan year beginning in 2021 (i.e., the "Lookback Year" measured as of 1/1/2021), the same UVBs that were used to determine the 2021 VRP. Alternatively, Plan D may opt out of the Lookback Rule, in which case, its Variable-rate Premium for 2022 will be based on UVBs for the plan year beginning in 2022 measured as of 1/1/2022.
10 Assuming the participant count remains below 100, Plan C will be subject to the Lookback Rule for 2022 unless Plan C chooses to opt out of using the Lookback Rule. If Plan C does not opt out, Plan C's Variable-rate Premium for 2022 will also be based on UVBs for 2021 measured as of 1/1/2021.
The Premium Funding Target is the liability measure underlying the UVB calculation. It is determined the same way the funding target is determined under ERISA section 303 (minimum funding requirements) except that only vested benefits are included, and a special premium discount rate structure is used. With the exception of the discount rate, all other assumptions must be identical to those used to determine the minimum required contribution under ERISA section 303. In lieu of using the special premium discount rates, you may make an election (irrevocable for five years) to use smoothed discount rates, similar to, and in some cases identical to, the rates used to determine the minimum required contribution. Different terminology is used to describe the Premium Funding Target depending on whether this election is in effect.
Until an election is officially revoked, it remains in place. An election to use the Alternative Premium Funding Target cannot be revoked for five calendar years. Similarly, once an election is revoked, the plan cannot make another election to use the Alternative Premium Funding Target for five full years. The following example illustrates the rules on making and revoking an election to use the Alternative Premium Funding Target.
Example — Plan A first makes an election to use the Alternative Premium Funding Target for a plan year that begins on April 1, 2022. In this case, the Alternative Premium Funding Target must be used to determine UVBs for all plan years beginning before April 1, 2027. The plan may revoke the election first effective for any plan year beginning on or after April 1, 2027, but unless the election is revoked, it will remain in place.
This is the case even if the plan year subsequently changes. For example, if the plan year is changed to the calendar year first effective January 1, 2027 the Alternative Premium Funding Target must be used for the Short Plan Year April 1, 2026 - December 31, 2026 and for the January 1, 2027 - December 31, 2027 plan year. The first plan year for which the Plan Administrator may revoke the election is the 2028 plan year.
The election (or revocation) must be made by the premium filing due date. An election to use (or revoke) the Alternative Premium Funding Target is made as part of the Comprehensive Premium Filing. If an election (or revocation) is not made as part of the Comprehensive Premium Filing, it may be made as part of an amended filing only if the amended filing is made on or before the due date.
Only vested benefits are taken into account when determining the Premium Funding Target. For this purpose, a benefit does not fail to be considered vested solely because it is not protected under Code section 411(d)(6) and thus may be eliminated or reduced by the adoption of a plan amendment or by the occurrence of a condition or event. Such a benefit is vested for premium purposes (if the other requirements for vesting have been met) so long as the benefit has not actually been eliminated or reduced. In addition, certain benefits payable upon a Participant's death do not fail to be considered vested solely because the Participant is still living. The benefits to which this rule applies are a qualified pre-retirement survivor annuity (QPSA), a post-retirement survivor annuity such as the annuity paid after a participant's death under a joint-and-survivor or certain-and-continuous option, and a benefit that returns a Participant's accumulated mandatory employee contributions. The following examples illustrate these concepts:
A Participant's pre-retirement lump-sum death benefit (other than a benefit that returns accumulated mandatory employee contributions or a QPSA paid as a lump sum) is not vested if the Participant is living. Similarly, a disability benefit is not vested if the Participant is not disabled.
Estimated Premium Funding Target top
If the Premium Funding Target is not known by the due date, an estimated Variable-rate Premium may be paid on the due date. Doing so triggers a requirement to submit an amended filing at a later date to reconcile the actual Variable rate Premium with the estimate. In the event the actual Variable-rate Premium is greater than the estimate, penalties for late payment will be waived if the estimate meets certain criteria and the reconciliation filing is made by the end of the sixth calendar month that begins on or after the premium filing due date (generally April 30th after year end for calendar year plans). For additional information, see "Automatic Penalty Waiver for Certain Late Variable-rate Premiums" in the "Late Payment Charges" section.
11 Note that this will not be the case if the plan is not yet subject to PPA for funding purposes, or if an election is made under PPA 2006 section 402, to use an 8.25% discount rate to determine the funding target for funding purposes. See "Plans Subject to Special Funding Rules" later in this section.
The asset measure underlying the UVB calculation is determined the same way assets are determined under ERISA section 303 except without regard to any averaging method. For premium purposes, the market value of assets is measured on the UVB Valuation Date and adjusted to account for contribution receipts using the same methodology as is used for funding purposes.
Adjustments for prior year contributions top
If contributions for the plan year prior to the Premium Payment Year (or, in the case of a plan using the Lookback Rule, the plan year preceding the Lookback Year) are made after the UVB Valuation Date, the market value is increased to reflect the value of such contributions discounted to the UVB Valuation Date. The discount rate for this purpose is the ERISA section 303(h)(2)(A) effective interest rate for the plan year for which the contributions were made (as reported in item 5 of Schedule SB). For example, consider a calendar year plan with a January 1 UVB Valuation Date.
Contributions made in 2022 for the 2021 plan year are included in the January 1, 2022 asset value. Such contributions are discounted from the date made to January 1, 2022 using the 2022 effective interest rate. Such contributions are included only to the extent made by the date of the premium filing.
Adjustments for current year contributions top
If contributions for the Premium Payment Year (or, in the case of a plan using the Lookback Rule, the Lookback Year), are made before the UVB Valuation Date, the market value is decreased to exclude the adjusted value of these current year contributions. For this adjustment, such contributions are increased to the UVB Valuation Date using the ERISA section 303(h)(2)(A) effective interest rate for the plan year for which they were made. This can happen only if the UVB Valuation Date is after the beginning of the plan year. For example, consider a calendar year Small Plan with a July 1 UVB Valuation Date:
Contributions made in April 2022 for the 2022 plan year are not included in the July 1, 2022 asset value. Such contributions are increased from the date made to July 1, 2022, using the 2022 effective interest rate. The July 1, 2022 market value of assets are decreased by the adjusted value of contributions made in April 2022.
Comparison to asset value reported on Schedule SB top
In the case of:
The amounts would differ only if a premium filing is made before the premium due date and prior year contributions are made after the premium filing is made (and thus not included in assets).
The following table summarizes the various dates and assumptions that are used to determine Variable-rate Premiums for 2022. Although Participant Count Date is not used to determine the Variable-rate Premium, it is included in the table so that all of the variables affecting premium calculations are contained in one summary. Please review the column that relates to your plan.
| Summary12 | ||||
|---|---|---|---|---|
| If Lookback Rule Applies | If Lookback Rule Does Not Apply | |||
| Standard Premium Funding Target |
Alternative Premium Funding Target |
Standard Premium Funding Target |
Alternative Premium Funding Target |
|
| Participant Count Date | Last day of 2021 plan year | Last day of 2021 plan year | Last day of 2021 plan year | Last day of 2021 plan year |
| UVB Valuation Date | Funding valuation date for 2021 | Funding valuation date for 2021 | Funding valuation date for 2022 | Funding valuation date for 2022 |
| Benefits reflected in Premium Funding Target | Vested portion of benefits included in 2021 funding target | Vested portion of benefits included in 2021 funding target | Vested portion of benefits included in 2022 funding target | Vested portion of benefits included in 2022 funding target |
Assumptions
|
Spot segment rates for month before 2021 plan year begins Whatever was used for funding purposes for 2021 |
Whatever would have been used for funding purposes for 2021 if Interest Rate Stabilization Rules had not applied13 Whatever was used for funding purposes for 2021 |
Spot segment rates for month before 2022 plan year begins Whatever is used for funding purposes for 2022 |
Whatever would be used for funding purposes for 2022 if Interest Rate Stabilization Rules did not apply14 Whatever is used for funding purposes for 2022 |
| At-risk status | Whatever status was in effect for funding purposes for 2021 | Whatever status was in effect for funding purposes for 2021 | Whatever status is in effect for funding purposes for 2022 | Whatever status is in effect for funding purposes for 2022 |
At-risk load
|
If the plan was at-risk for 2021 for funding purposes, 4% of what the Standard Premium Funding Target would be if the plan wasn't at-risk. Otherwise, N/A. The same amount included in the liability for funding purposes for 2021 |
If the plan was at-risk for 2021 for funding purposes, 4% of what the Alternative Premium Funding Target would be if the plan wasn't at-risk. Otherwise, N/A. The same amount included in the liability for funding purposes for 2021 |
If the plan is at-risk for 2022 for funding purposes, 4% of what the Standard Premium Funding Target would be if the plan wasn't at-risk. Otherwise, N/A. The same amount included in the liability for funding purposes for 2022 |
If the plan is at-risk for 2022 for funding purposes, 4% of what the Alternative Premium Funding Target would be if the plan wasn't at-risk. Otherwise, N/A. The same amount included in the liability for funding purposes for 2022 |
12 Table entries assume plan is not a New or Newly Covered Small Plan and that non of special Participant Count Date rules apply. The terms "funding" or "for funding purposes" in this table mean amounts determined under ERISA Section 303. References to 2021 or 2022 relate to the plan year beginning in such year.
13 This is not the case for plan that are not subject to PPA for funding purposes or frozen airline plans that made an election under section 402 of PPA. See "Plans Subject to Special Funding Rules" on next page.
Plans covered by any of the special funding rules listed below must determine UVBs in the same manner (and using the same discount rate basis) as all other plans. This includes:
In certain situations, plans with Short Plan Years or Short Coverage years qualify to pay a prorated premium. For example, if a plan with a nine-month plan year qualifies for premium proration, only 75% (i.e., 9/12) of un-prorated premium is due. In addition, in some cases, premiums are prorated if the plan is not covered by PBGC for the entire plan year.
The situations in which premium proration applies (or does not apply) are described below.
Premiums are prorated for Newly Covered Plans if the first day of coverage begins more than a month after the plan year begins. For example, if a calendar year plan becomes covered by PBGC in March of 2022, the premium is prorated (i.e., 10/12 of the un-prorated premium would be owed).
Premiums are not prorated to reflect a period of non-coverage that occurs during the plan year. For example, if a calendar year plan that’s covered on January 1, 2022 ceases to be covered on July 15, 2022, the full 2022 premium is owed.
Short Plan Years — in general top
Premiums are prorated if the Short Plan Year:
Premiums are not prorated if a Short Plan Year is the result of:
Reminder— plans that cease to exist mid-year because of a standard termination might be subject to an accelerated due date as explained in "When to File" section.
Short Plan Years that end after filing due date top
If proration applies, you may pay a prorated premium even if the Short Plan Year has not ended by the time the premium is due. For example, consider a Single-employer plan with a calendar year plan year that expects to distribute plan assets pursuant to a standard termination on November 15, 2022. When preparing the 2022 premium filing (due October 15, 2022), you may report an anticipated distribution date of November 15, 2022 (see item 13 in the "Description of Data Elements" section) and prorate the premium.
However, if you take this approach and the plan year turns out to be longer than you anticipated (i.e., longer than what you report in the filing), you will have to make up any premium underpayment, which will be subject to late payment charges. This happens fairly regularly with respect to plans that are expecting to distribute plan assets pursuant to a standard plan termination near the end of the year because it often takes longer than expected to complete the distribution.
To avoid the possibility of late payment charges arising if the final distribution takes longer than expected, if you are anticipating a short final plan year as the result of distribution of plan assets pursuant to a standard plan termination, but the distribution hasn't been completed by the premium due date, you may file without regard to the anticipated Short Plan Year. With this approach, you would:
With this approach, it will not be necessary to amend the premium filing if it turns out the distributions are completed before year end. Rather, after Form 501 (Post-Distribution Certification) is processed, PBGC will automatically prorate the premium, apply the Variable-rate Premium exemption (if applicable) and close out the premium account. Any overpayment will be available for refund. The refund can be requested by email or via the "Submit a Request" Quick Link from the My PAA Plan Page, see PBGC's My PAA online demo web page.
Which months count for purposes of prorating premiums
Plans that qualify to prorate their premium pay a premium for each full or partial month in the Short Plan Year or Short Coverage Year. For example, if the Short Plan Year begins on January 1 and ends on June 15th, the Short Plan Year is considered to be a six-month plan year (i.e., five full months and one 15-day partial month). That means the premium owed is 6/12 of the un-prorated amount.
When counting months for:
How to count months for purposes of prorating premiums
Generally, when counting months (full and partial), each month in the plan year is treated as beginning on the same day of each successive calendar month. For example, if the plan year begins on July 1, the first day of each successive calendar month is the beginning of a new plan month. Similarly, if the plan year begins on January 15, the second plan month begins on February 15, the third plan month on March 15, etc.
There are two exceptions to this general rule that relate to plan years beginning on the 30th or 31st of a calendar year month:
These special rules are illustrated in the following examples.15
Example 1— Plan A qualifies for premium proration for its final plan year which begins on November 30th (the last day of November) and ends on March 6th. All subsequent months in the final plan year are treated as beginning on the last day of the calendar month. Accordingly, there are four (full or partial) months in the proration period: November 30 to December 30, December 31 to January 30, January 31 to February 27, and February 28 to March 6.
Example 2— Plan B qualifies for premium proration for its final plan year which begins on December 30th and ends on March 12th. With the exception of February, all subsequent months in the final plan year are treated as beginning on the 30th day of the calendar month. February is treated as beginning on February 28th. Accordingly, there are three (full or partial) months in the proration period: December 30 to January 29, January 30 to February 27, and February 28 to March 12.
Example 3— Plan B qualifies for premium proration for its final plan year which begins on January 31st and ends on April 26th. All subsequent months in the final plan year are treated as beginning on the last day of the calendar month. Accordingly, there are three (full or partial) months in the proration period: January 31 to February 27, February 28 to March 30, March 31 to April 26.
15In examples 2 and 3, if February of the final plan year falls in a leap year, references to February 27 change to February 28 and references to February 28 change to February 29.
This section provides additional guidance for plans involved in a Spinoff, Merger, or Consolidation. Plans considering any of these transactions are encouraged to read this section carefully before finalizing the transaction because decisions that have little impact on funding requirements can have a significant impact on the amount of premium due and the due date. For example, with respect to a non-De Minimis Spinoff to a New Plan, the aggregate premium due for both plans will generally be less if the Spinoff occurs at the beginning of the plan year. Also, when combining two plans, aggregate premium amounts will differ depending on, for example, whether Plan A is merged into Plan B, Plan B is merged into Plan A, or the two plans are consolidated into a New Plan C.
Note that as the result of one of these transactions, a plan could become a Small Plan for the first time or cease to be a Small Plan. Filers are cautioned to review the Lookback Rule provisions in either of these situations (See "How to Determine UVBs" section).
Information about Spinoffs, Mergers and Consolidations are reported by all PBGC-covered plans involved in the transaction as part of the Comprehensive Premium Filing in items that request information about "Transfers from other plans" and "Transfers to other plans". See "Description of Data Elements" section, items 14 and 15.
If the Transferee Plan is a New Plan, all of the special rules applicable to New Plans apply. For example, for the New Plan's first plan year:
A "Merger" is a transaction in which a plan transfers all of its assets and liabilities to an existing plan and, as a result, ceases to exist. In essence, the Transferor Plan becomes part of the Transferee Plan.
If, as the result of a Merger, a plan ceases to exist, in addition to reporting information about the transaction, the fact that the filing is the last filing for the plan must also be reported.16 (See "Description of Data Elements" section, item 13).
A "Consolidation" is a transaction in which two or more plans transfer all of their assets and liabilities to a New Plan and, as a result, cease to exist (because the Transferor Plans become part of the new Transferee Plan). It differs from a Merger because in a Merger, the Transferee Plan 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 Plan.
If, as the result of a Consolidation, a plan ceases to exist, in addition to reporting information about the transaction, you must also report that the filing is the last filing for the plan. (See "Description of Data Elements" section, item 13).17
The following examples illustrate the effect of these transactions on premiums. For purposes of these examples, assume all plans have been covered by PBGC since inception and that none of the affected plans are Small Plans (which means they all have beginning of year valuation dates and none of them use the Lookback rule for determining UVBs).
Example 1 (Beginning of Plan Year Spinoff to a New Plan)— Plan B is created at the beginning of 2022 as the result of a non-De Minimis Spinoff from Plan A (a plan with a calendar year plan year). Plan B will also have a calendar year plan. Plan A made an election to use the Alternative Premium Funding Target in 2010; such election is still in effect.
For 2022, premiums for these plans are determined as follows:
Note — if the Spinoff had been De Minimis, the special Participant Count Date rule would not apply (i.e., Plan A's Participant Count Date would have been December 31, 2021). Because Plan B's Participant Count Date is January 1, 2022, that means both plans would have owed Flat-Rate Premiums on behalf of the Participants that were spun off from Plan A to Plan B.
16If a plan ceases to exist because of a Merger or Consolidation and the transaction occurs after the premium filing is submitted, please contact PBGC via email at premiums@pbgc.gov, so we can update our records. Absent this notification, PBGC will likely contact the plan (that no longer exists) to inquire about why the subsequent year's filing is not submitted.
Example 2 (Mid-year Spinoff to a New Plan)— Plan B is created on July 1, 2022 as the result of a Spinoff from Plan A. Plan B's first plan year will be a Short Plan Year (i.e., July 1, 2022 - December 31, 2022). Plan A made an election in 2010 to use the Alternative Premium Funding Target that is still in effect. For 2022, premiums are determined as follows:
Example 3 (Mid-year Spinoff to a pre-existing plan)— Plans A and B are both calendar year plans. Both plans made an election in 2017 to use the Alternative Premium Funding Target that is still in effect. On July 1, 2022, Plan A spun off assets and liabilities for Participants in Location XYZ to Plan B.
Example 4 (Beginning of year Merger)— Plans A and B are both calendar year plans. On January 1, 2022, Plan B merges into Plan A. The Merger is not De Minimis.
The Merger's impact on 2022 premiums is as follows:
Because the Merger did not occur until after the due date for Plan B's 2021 Comprehensive Premium Filing, PBGC expects that Plan B would not have reported that 2021 would be it's "Final Filing" as part of its 2021 filing. As long as Plan A properly reports the Merger in its 2022 filing, it is not necessary for Plan B to amend its 2021 filing to indicate that that is the final filing.
Note — if the Merger had been De Minimis the special Participant Count Date rule would not apply (i.e., Plan A's Participant Count Date would have been December 31, 2021). Exception — if the plan reports the Merger is De Minimis, but the surviving plan was the smaller of the two plans, the special Participant Count Date rule would apply. See instructions for item 14e for a description of which plan is considerers the "smaller" of the two plans.
Example 5 (Mid-year Merger)— Plan A is a calendar year plan. Plan B has a plan year that begins on March 1. On February 1, 2022, Plan B merges into Plan A.
The Merger's impact on 2022 premiums is as follows:
Example 6 (Mid-year Merger)— Plan A is a calendar year plan. Plan B has a plan year that begins on October 1. Plan B merges into Plan A on December 1, 2022. The Merger's impact on premiums is as follows:
Example 7 (Beginning of Plan Year Spinoff to an Existing Plan)— Plans A and B are both calendar year plans. On January 1, 2022, Plan A spun off assets and liabilities for Participants in Location XYZ to Plan B.
2022 premiums are determined as follows:
Note — if the Spinoff had been De Minimis, the special Participant Count Date rule would not apply for either plan (i.e., The Participant Count Date for both plans would have been December 31, 2021).
This section provides a description of each required data element presented in the same order as the "form" used to illustrate the data elements (see "Data to be Submitted" section). Item numbers are presented solely to facilitate understanding. The My PAA screens do not include item numbers. If you are using private-sector software, item numbers may or may not be included. We recommend you review these instructions with a copy of the "form" in front of you.
Note for plans with more than one plan year beginning in 2021 or 2022 - References in these instructions to the 2021 plan year (and to filings for the 2021 plan year) should be considered to refer to your plan's most recent complete plan year. For example, a plan that changes its plan year could have two plan years beginning in calendar 2022. When such a plan makes its premium filing(s) for its second 2022 plan year, the references in these instructions to the 2021 plan year (and to filings for the 2020 plan year) should be considered to refer to the plan's first 2022 plan year (and to filings 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 2021, the references in these instructions to the 2021 plan year (and to filings for the 2021 plan year) should be considered to refer to the plan's second 2021 plan year, which is the plan's most recent complete plan year.
Note about reporting dollar amounts - With the exception of total premium, premium credits, the amount due PBGC, and the amount of any overpayment, money amounts reported should be in dollars only (no cents). UVBs are rounded up to the next $1,000.
Check this box only if this filing is an amendment to a previously submitted filing for the 2022 plan year. If this is an amended filing, be sure to complete item 18.
Note that a Variable-rate Premium reconciliation filing (in which you provide final Premium Funding Target information after having reported an estimated Premium Funding Target) is considered an amended filing. If you amend a comprehensive filing for a reason other than reconciling an estimated Variable-rate Premium and the amended filing shows a lower premium than the amount that was reported in the filing that is being amended, you must provide an explanation of the specific circumstances or events that caused the reduction. See the "Correcting Errors, Credit Balances and Reconciling Estimates" section for more information.
If you are amending a filing for a plan year that did not begin in 2022, the rules in this document do not apply.
If your plan is eligible for disaster relief, check the box and be sure to complete item 19. For more information, see PBGC's Disaster Relief web page.
Note for New Plans with Retroactive Effective Dates - PBGC coverage for a New Plan begins on the plan's effective date, regardless of when the plan is adopted.
Note that you must make a premium filing even if the Flat-rate Premium is $0. This may happen, for example, if your plan is a New Plan that grants no past service credits, so that there are no Benefit Liabilities on the Participant Count Date. A plan with no Benefit Liabilities has no Participants for premium purposes.
This Part applies only to Single-employer Plans. Multiemployer Plans should skip to Part IV. CSEC Plans should skit to item 7.
To be valid, an election must be made in accordance with these instructions and must be filed with PBGC on or before the deadline.
You may elect to use the Alternative Premium Funding Target to determine UVBs instead of the Standard Premium Funding Target. Once an election is made, it remains in effect for all subsequent plan years unless and until it is subsequently revoked.
You may revoke a prior election only if the Premium Payment Year begins at least five years after the beginning of the plan year for which the election was first applicable. Similarly, if you revoke an election, you may not make a new election to use the Alternative Premium Funding Target until five years have passed.
If you are not sure if an election is in effect or when an election first took effect, you can find out by viewing your account history in My PAA, by clicking the "Account History" link from the Plan Details page.
See "How to Determine Unfunded Vested Benefits" section for more information on elections and revocations.
This item relates to Variable-rate Premium information and applies only to Single-employer Plans.
In general, for 2022 the Variable-rate Premium is $48 per $1,000, or fraction thereof, of UVBs as of the UVB Valuation Date, but no more than $598 times the number of Participants (i.e., the MAP-21 Cap). For CSEC's, the rate per $1,000 UVBs is $9 instead of $48. For certain plans of small employers, the Variable-rate Premium may be capped at an amount lower than the MAP-21 CAP (see item 7b).
Some Single-employer Plans are exempt from the Variable-rate Premium; others may have a Variable-rate Premium of $0. In either case, this section must be completed in accordance with the following instructions.
You may claim this exemption in anticipation of a full distribution by plan year-end even if that hasn't happened by the time you submit the filing. However, if you fail to complete the final distribution by the end of the year, the exemption will not apply. In that case, you will need to amend the filing accordingly and late payment charges will be assessed on any Variable-rate Premium owed and paid after the applicable due date.
To avoid the possibility of late payment charges arising if the final distribution takes longer than expected, consider the alternative approach described in the "Short Plan Years" part of the "Who Must File" section.
To qualify for this exemption, it is not necessary that the plan make a final distribution of assets during the Premium Payment Year. However, this exemption is conditioned on the plan's ultimately making a final distribution of assets in full satisfaction of its obligations under the standard termination. If that doesn't happen, the premium that would otherwise have been required will be due retroactive to the applicable due date. In that case, you will need to amend the filing.
If an exemption applies, check the applicable box to indicate which exemption applies and skip to item 8. If more than one exemption applies, check all applicable boxes.
Note that a plan with 25 or fewer Participants does not necessarily qualify for the Small-Employer Cap because the eligibility criterion is based on employees, not the Participant Count. For example, if a plan has 15 Participants, but there are more than 25 employees (taking into account all employees of all contributing sponsors of the plan and all members of their controlled groups), the plan does not qualify for the cap.
Also note that a plan with more than 25 Participants might qualify for the cap. For example, consider a contributing sponsor with 20 employees, all of whom are Participants in a plan. If the plan also covers 15 former employees who are either terminated vested or retired, there are 35 Participants in total. This plan would qualify for the cap (assuming there are no other contributing sponsors and no controlled group members).
Reporting requirements — If your plan qualifies for the Small-employer Cap, check the box to report that fact.
If your plan qualifies for this cap, instead of calculating and reporting both the uncapped Variable-rate Premium and the maximum Variable-rate Premium and then paying the lesser of the two amounts, you may report and pay only the maximum Variable-rate Premium.
If you choose to not report the uncapped Variable-rate Premium, omit all items 7c through 7g and go directly to item 7h. Note that if you choose to pay the maximum Variable-rate Premium without determining whether it is less than the uncapped Variable-rate Premium, you may pay a larger Variable-rate Premium than required.
If this is a Short Plan Year of coverage, the required Variable-rate Premium may be a prorated portion of this amount; however, the full year's premium amount must be reported in this item.
17 In general, this date can be found on the determination PBGC provides after processing a coverage determination form. If you have not received such a determination by the time the filing is due, report the date you believe coverage ceased.
If you file a premium payment after the due date, we will bill the plan for late charges. Late charges include both interest and penalty charges. The charges are based on the outstanding premium amount due on the due date.
The late payment interest charge is set by ERISA, and we cannot waive it. Interest accrues at the rate imposed under section 6601(a) of the Code (the rate for late payment of taxes) and is compounded daily. These rates are published by IRS quarterly and are also posted on PBGC's "Interest Rates and Factors" web page.
Late payments are generally subject to a penalty of 2½% of the late amount per month (or partial month) late, capped at 50% of the late amount. However, in the event a plan discovers and corrects an underpayment before PBGC sends written notice that there is or may be a premium delinquency, the 2½% rate is reduced to ½% and the cap is reduced from 50% to 25%.
The written notices mentioned above include, but are not limited to:
Case-by-Case Waivers
If you receive a Statement of Account ("SOA") that includes a penalty charge, but you believe there is a reason why all or a portion of the penalty should be waived (e.g., reasonable cause), you may request a waiver. Information about what constitutes reasonable cause as well as information about other situations where a penalty waiver might be warranted can be found in § 21 of the appendix to PBGC's premium payment regulation, 29 CFR Part 4007, available on PBGC's "egal Resources" web page.
The instructions and timeframe for requesting a waiver will be provided in the SOA. Be sure to follow the instructions carefully. Requests that are submitted late will not be considered.
Hardship (i.e., "Statutory") Waivers
If, before the filing due date, you can show substantial hardship and that you will be able to pay the premium within 60 days after the filing due date, you may request that we waive the late payment penalty charge. If we grant your request, we will waive the late payment penalty charge for up to 60 days. To request a waiver, contact PBGC at least 30 days before the filing due date. Be sure to include specific information and documents to demonstrate both that it will be a substantial hardship to make the payment on or before the filing due date and that you will have the ability to make the payment within 60 days after the filing due date.
Automatic Penalty Waiver for Premiums paid Within Seven Days of Due Date
If the sole reason a late payment penalty charge applies is because a premium was paid in full after the due date, but within seven calendar days of the due date, the late payment penalty charge will automatically be waived.
Automatic Penalty Waiver for Certain Typically Compliant Plans
PBGC will automatically waive 80% of the penalties assessed at the 2½% rate if the plan:
For this purpose, a "good premium compliance history" generally means that the plan paid required premiums timely for the five plan years immediately preceding the Premium Payment Year. In addition, if, during the 5-year period, the plan paid its premium late, but was not required to pay a late payment penalty (e.g., the penalty was waived), the plan is treated as paying timely for that year.
Automatic Penalty Waiver for Certain Late Variable-rate Premiums
As explained in the "When to File" section, in rare circumstances (e.g., a mid-year Merger or change in actuary), the Premium Funding Target might not be calculated or finalized by the premium due date. PBGC allows plans in this situation to file timely and pay an estimated Variable-rate Premium by the due date and then submit an amended filing at a later date to reconcile the actual Variable-rate Premium with the estimate.
Because a plan's full Variable-rate Premium (not merely an estimate) is due by the due date, if the full amount is not paid by that date, the plan will be subject to late payment interest charges and may also be subject to late payment penalty charges.
If the actual Variable-rate Premium is greater than the estimate, penalties for late payment will be waived if:
Note that this waiver applies only to estimated Premium Funding Targets, not estimated asset values. If the asset value reported in the reconciliation filing differs from what was reported in the original (i.e., estimated) filing, this automatic penalty relief will be lost. However, PBGC will consider a request for an appropriate penalty waiver in such a situation and, in acting on the request, will consider such facts and circumstances as the reason for the mistake, whether assets were overstated or understated, and, if assets were overstated, the extent of the overstatement.
If you know the final Premium Funding Target by the time the Variable-rate Premium is due, you should pay the amount owed by that date. If you do so, you will avoid the interest charge and any penalty charge. If you report that you are making a filing based on an estimated Premium Funding Target, you will be required to make an amended filing reflecting the actual Premium Funding Target by the date the Variable-rate reconciliation filing is due.
If you cannot make a filing by the due date because you are having difficulty determining some of the required information, you can minimize late payment charges by submitting payment (the amount due or an estimate) without submitting the certified filing. As of the date these instructions were issued, when submitting a payment without a corresponding filing, the payment has to be made outside of My PAA, either via www.pay.gov, or by check or electronic payment. It is possible that My PAA will be modified to accept payments without corresponding filings some time during 2021. Please check "What's New for My PAA" for updates.
PBGC may assess a penalty under ERISA section 4071 for failure to furnish premium-related information by the required due date. Making a premium payment without an accompanying premium information filing (i.e., EIN, PN, PYC) may cause significant delay in providing a statement of account for the plan. However, when the information filing is ultimately made, the payment will be credited as of the date it was filed and thus stop the accrual of late payment charges on the amount paid.
Example— The Normal Due Date for a plan with a plan year beginning on April 1, 2022 would normally be January 15, 2023. Because that day is a Sunday, the due date is Monday, January 17, 2023. If the filing is made after January 17th, late payment charges, if applicable, will be computed from Saturday, January 15, 2023, not January 17th.
Making Payment Without Filing Information
If you make a premium payment without filing the related premium information, file the information as soon as possible to get proper credit for your payment and minimize any late filing penalty. Follow the instructions in this document or on PBGC's "Premium Filing Payment and Instructions" web page for identifying your payment so that we can associate it with your information filing.
Note that PBGC may assess a penalty under ERISA section 4071 for failure to furnish premium-related information by the required due date.
Filing Information Without Making Required Payment
If you make a filing of premium information without making a required payment, send the payment as soon as possible to minimize late payment charges. Follow the instructions in this document or in My PAA for identifying your payment so that we can associate it with your information filing.
Failure to report a filing as the final premium filing
If you make a premium filing that is a "Final premium filing" as described in item 13 of the Comprehensive Premium Filing instructions, and you do not provide the information required by item 13, you must make an amended filing if the event referred to in item 13 occurred before you made your original filing, unless:
If you make a premium filing that is a "Final premium filing" as described in item 13 of the Comprehensive Premium Filing instructions, and you do not provide the information required by item 13 because the event referred to in item 13 has not yet occurred when you make the filing, you are not required to make an amended filing. However, to avoid the need for correspondence to establish why you are not making any more premium filings, we recommend that you contact us to report the event, unless:
Alternatively, because our system automatically prorates premiums for plans in this situation based on the information reported on PBGC Form 501 and updates the plan’s statement of account to reflect any overpayment, in lieu of submitting an amended filing, you may request a refund of such overpayment by utilizing the "Submit Request" link available on the My PAA Plan Details page or by sending an email to premiums@pbgc.gov.
For more information about submitting requests via My PAA, see PBGC's My PAA online demo web page.
Amending Filings
If, after submitting a filing, you discover an error has been made (e.g., reported information is incorrect), you must amend the filing to report the correct information even if the correction has no impact on the premium amount. A filing can be amended by resubmitting the filing with the corrected information. Be sure to indicate that the filing is an amendment to a previously submitted filing (see "Description of Data Elements" sections).
In the amended filing, report all of the required information, including information that was correct in the original filing (i.e., the filing that is being amended). Include as credits all the credits you previously claimed increased by the amount you paid with your most recent filing and reduced by any refund you requested.
If the originally reported premium:
If you prefer a refund by electronic funds transfer (ACH), provide the necessary information in the applicable section of the amended filing; we will make the transfer through the ACH system.
With either option, the overpayment will appear as an "Amount Overpaid" on your plan's account history until it is refunded or used to satisfy a future year's premium. See section below on Premium Credit Balances.
If you amend a comprehensive filing, for a reason other than reconciling an estimated Variable-rate Premium and the amended filing shows a lower premium than the amount that was originally reported, you must provide an explanation of the specific circumstances or events that caused the reduction. For example, if your original comprehensive filing's Participant Count included employees at a division that is not covered by the plan, you would explain why the employees were erroneously counted as Participants and how the error was discovered.
Amending a prior year's filing
Note that if you are amending a filing for an earlier year, you must follow the instructions for that year except that current mailing and electronic funds transfer (EFT) addresses should be used instead of the addresses that were included in the instructions for the original filing (i.e., the filing that is being amended). Prior year instructions are available on PBGC's "Premium Filing" web page.
Premium credit balances, whether resulting from an amended filing or any overpayment, are shown on plans' account histories and can be viewed in My PAA at any time. We recommend you review your plan's account history before you file to ensure that any available credits from the prior plan year have been used. If you have a credit from two or more years prior to the Premium Payment year, you will need to contact the Premium Customer Service Center in order to use it (See Appendix 2).
Note that an overpayment for one plan cannot be applied to offset an underpayment on another plan.
A plan administrator may request that a premium credit balance be refunded or be credited against the next year's premium. Requests must be made within the statutory limitation period (generally six years).
For plans that filed an estimated Variable-rate Premium, the reconciliation is made by amending the filing that included the Variable-rate Premium estimate. This reconciliation filing serves to finalize a previously estimated Premium Funding Target; it does not afford an opportunity to elect to use the alternative method after the due date for such election (or to revoke a prior election after the due date for such revocation). See the instructions for item 7d in the "Description of Data Elements" section for additional information on how to reconcile an estimated Variable-rate Premium.
Failure to reconcile these estimates in a timely manner will result in late payment charges if the estimate to be reconciled was too low. PBGC may also assess penalties under ERISA section 4071 for failure to reconcile estimated premium filings by the reconciliation due date.
Plan Administrators are required to retain all plan records that are necessary to establish, support and validate the amount of any PBGC premium required to be paid and any information required to be reported. The records must include calculations and other data prepared by an enrolled actuary, the Plan Sponsor, and an employer required to contribute to the plan with respect to its employees; or for a plan described in section 412(e)(3) of the Code, by the insurer from which the insurance contracts are purchased. The records must be kept for six years after the premium due date.
Records that must be retained include, but are not limited to, records that establish the number of plan Participants and the amount of UVBs on which the Variable-rate Premium is based. For this purpose, the term “records” includes, but is not limited to: plan documents, Participant data records, personnel and payroll records, actuarial tables, worksheets, and reports, records of computations, projections, and estimates, benefit statements, disclosures, and applications, financial and tax records, insurance contracts, records of plan procedures and practices, and any other records, whether in written, electronic, or other format, that are relevant to the determination of the amount of any premium required to be paid or any premium-related information required to be reported.
Records retained must be made available or submitted to PBGC promptly upon request. If a record to be produced for PBGC inspection and copying exists in more than one format, it must be produced in the format that PBGC specifies.
We may audit any premium filing; inspect and copy any records that are relevant to the determination of the amount of any premium required to be paid and any premium-related information required to be reported; and require disclosure and demonstration of any system used to determine any premium required to be paid or premium-related information required to be reported, so that PBGC can assess the system’s effectiveness and reliability.
If we determine upon audit that the full amount of the premium due was not paid, late payment interest charges under § 4007.7 of the Premium Regulations and late payment penalty charges under § 4007.8 of the Premium Regulations will apply to the unpaid balance from the premium due date to the date of payment (see "Late Payment Charges" section for more information on penalties and interest for late payment of premiums).
If, in our judgment, the plan’s records fail to establish the number of participants with respect to whom premiums were required, we may rely on data we obtain from other sources (including the Internal Revenue Service and the Department of Labor) for presumptively establishing the number of plan participants for premium computation purposes. Similarly, if, in our judgment, the plan's records fail to establish the UVBs amount reported in the premium filing, we may rely on data we obtain from other sources for estimating the UVBs for premium computation purposes.
In addition to penalties for late payment of premiums, we may assess a penalty under ERISA section 4071 for failure to furnish premium-related information by required due dates.
Definitions for terms shown in capital letters throughout the instructions are shown below. New terms and terms that have been modified from the 2021 instructions are highlighted for emphasis.
"Alternative Premium Funding Target" — see "Premium Funding Target"
"Benefit Liabilities" means all liabilities with respect to employees and their beneficiaries under the plan (within the meaning of Code section 401(a)(2)). Thus, Benefit Liabilities include liabilities for all accrued benefits, whether or not vested. In addition, a plan's Benefit Liabilities include liabilities for ancillary benefits not directly related to retirement benefits, such as disability benefits not in excess of the qualified disability benefit, life insurance benefits payable as a lump sum, incidental death benefits, or current life insurance protection (see Treasury Regulation §1.411(a)-7(a)(1)).
"Code" means the Internal Revenue Code of 1986, as amended.
"Comprehensive Premium Filing" is the term used to describe the premium filing, regardless of whether the filing is the first filing for the plan year, an amended filing, or a reconciliation filing.
"Consolidation" means a transaction in which two or more plans transfer allof their assets and liabilities to a New Plan and, as a result, cease to exist (because the Transferor Plans become part of the new Transferee Plan). It differs from a Merger because in a Merger, the Transferee Plan 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.
"Continuation Plan" means a New Plan resulting from a Consolidation or Spinoff that is not De Minimis pursuant to the regulations under section 414(l) of the Code. For this purpose, a Spinoff is not de minimis if the Transferor Plan transfers 3% or more of its assets to the Transferee Plan.
"CSEC Plan" means a cooperative and small-employer charity plan (as defined in section 210(f)(1) of ERISA) that is subject to the alternative funding standards of section 306.
"De Minimis" with respect to a Merger or Spinoff means a transaction described as de minimis in regulations under section 414(l) of the Code (for single-employer plans) or in part 4231 of this chapter (for multiemployer plans). With respect to a pre-existing Transferee Plan to which another plan transfers, some, but not all, assets and liabilities, the transaction is considered De Minimis from the perspective of the Transferee Plan if the Spinoff is De Minimis from the perspective of the Transferor Plan.
"EIN" means Employer Identification Number. It is always a nine-digit number assigned by the Internal Revenue Service for tax purposes.
"ERISA" means the Employee Retirement Income Security Act of 1974, as amended (29 U.S.C. 1001 et seq.).
"Flat-rate Premium" means the portion of the premium determined by multiplying the flat premium rate by the number of Participants in the plan on the Participant Count Date.
"Form 5500 Series" means Form 5500, Annual Return/Report of Employee Benefit Plan, jointly developed by the Internal Revenue Service, the Department of Labor, and PBGC.
"Interest Rate Stabilization Rules" means the rules under which the volatility of certain discount rates used for funding purposes is limited by constraining them within a specified corridor as provided in ERISA 303(h)(2)(C)(iv).
"Lookback Rule" means the provision under which the Variable-rate Premium for the Premium Payment Year is determined based on UVBs for the plan year Prior Premium Payment Year instead of the Premium Payment Year.
"Lookback Year" means the Prior Premium Payment Year.
"Lump Sum Window" means a temporary opportunity to elect a lump sum in lieu of future annuity payments that is offered to individuals meeting specified criteria who would not otherwise be eligible to elect a lump sum.
"MAP-21 Cap" means the per-Participant cap on the Variable-rate Premium as provided in The Moving Ahead for Progress in the 21st Century Act.
"Merger" means a transaction in which one or more plans transfer all of their assets and liabilities to an existing plan and, as a result, cease to exist (because the Transferor Plan(s) become part of the Transferee Plan). It differs from a Consolidation because in a Consolidation, the Transferee Plan did not exist before the transaction. In a Merger, the Transferee Plan is an existing plan and follows the rules for preexisting, ongoing plans.
"Multiemployer Plan" (subject to the provisions of ERISA sections 3(37)(E) and (G) and 4303, dealing with elections to be treated or not to be treated as a Multiemployer Plan) means a plan:
For purposes of determining whether a plan is a Multiemployer Plan or a Single-employer Plan, all trades or businesses (whether or not incorporated) that are under common control are considered to be one employer.
"Multiple-employer plan" means a plan to which more than one employer contributes that is not a Multiemployer Plan.
"My PAA" means "My Plan Administration Account," PBGC's electronic premium filing application.
"New or Newly Covered Plan" means a plan that is either a New Plan or a Newly Covered Plan. In some cases, the term "New and Newly Covered Plan" is used for the same purpose.
"New Plan" means a plan that did not exist before the Premium Payment Year. This includes a plan resulting from a Consolidation or Spinoff. A plan that meets this definition is considered to be a New Plan even if the plan constitutes a successor plan within the meaning of ERISA section 4021(a).
"Newly Covered Plan" means a plan that becomes covered by title IV of ERISA during the Premium Payment year and that existed as an uncovered plan immediately before the first date of the Premium Payment Year on which it was a covered plan.
"Normal Premium Due Date" means the date premiums are due unless some special situation applies (i.e., a change in plan year, first time filing, or a standard termination). See "When to File" section.
"Participant" of a plan means an individual (whether active, inactive, retired, or deceased) with respect to whom the plan has Benefit Liabilities. See "How to Count Participants" section for more information.
"Participant Count" means the number of Participants on the Participant Count Date. See "How to Count Participants" section for more information.
"Participant Count Date" means the date on which Participants are counted for purposes of determining the Flat-rate Premium, the MAP-21 CAP on the Variable-rate Premium, whether the plan is a Small Plan, and, if applicable, the Small Employer Cap on the Variable-rate Premium. In general, it is the last day of the Prior Premium Payment Year, but there are some exceptions. See "How to Count Participants" section for more information.
"Plan Administrator" means:
"Plan Adoption Date" means the date on which a plan was formally adopted.
"Plan Sponsor" is determined as follows:
"PN" means Plan Number. This is always a three-digit number. The employer maintaining the plan assigns this number to distinguish among employee benefit plans established or maintained by the same employer. An employer usually starts numbering pension plans at "001" and uses consecutive Plan Numbers for each additional plan. Once a PN is assigned, always use it to identify the same plan. If a plan is terminated, retire the PN — do not use it for another plan.
"Premium Funding Target" is the liability measure used to determine the Variable-rate Premium. This is similar to the funding target that is used to determine the minimum funding requirement except that only vested benefits are taken into account. The discount rates used to determine this amount vary depending on which calculation method is used (standard or alternative):
"Premium Payment Year" means the plan year for which the premium is being paid. For example, because this document relates to premium filings for plan years beginning in 2021, all references to Premium Payment Year relate to plan years beginning in 2021.
"Premium Regulations" means PBGC's regulations on Premium Rates and Payment of Premiums (29 CFR Parts 4006 and 4007). The premium filing procedures (including the My PAA electronic filing application, paper instructions, and forms) are prescribed under and implement the Premium Regulations.
"Prior Premium Payment Year" means the plan year immediately preceding the Premium Payment Year.
"Schedule SB" means Schedule SB to the Form 5500 Series.
"Short Plan Year" means a plan year of less than 12 full months.
"Single-employer Plan" means any plan that is not a Multiemployer Plan. A Single-employer Plan includes a Multiple-employer Plan. For purposes of determining whether a plan is a Multiemployer Plan or a Single-employer Plan, all trades or businesses (whether or not incorporated) that are under common control are considered to be one employer.
"Small-Employer Cap" means the maximum Variable-rate Premium due for certain plans of small employers, generally employers with 25 or fewer employees. For these plans, the maximum Variable-rate Premium is the lesser of the product of $5 and the Participant Count squared and the MAP-21 cap.
"Small Plan" means a plan:
"Spinoff"means a transaction in which 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 preexisting plan that simply receives part of the assets and/or liabilities of the Transferor Plan.
"Standard Premium Funding Target" — see "Premium Funding Target"
"Transferee Plan" means a plan that receives assets and/or liabilities from another plan in a transfer (e.g., Spinoff, Merger, or Consolidation).
"Transferor Plan" means a plan that gives assets and/or liabilities to another plan in a transfer (e.g., Spinoff, Merger, or Consolidation).
"UVB Valuation Date" means the date on which UVBs are determined. This date is the plan's funding valuation date determined in accordance with ERISA section 303(g)(2) for:
"UVBs" means unfunded vested benefits, the term used to describe the underfunding measure on which the Variable-rate Premium is based.
"Variable-rate Premium" means the portion of the single-employer premium based on a plan's unfunded vested benefits.
"We" or "us" refers to the Pension Benefit Guaranty Corporation.
"You" or "your" refers to the Plan Administrator.
PBGC's business hours are 8:00 am to 5:00 pm Eastern Time, Monday through Friday, except Federal Holidays.
TTY/TDD users may call the Federal relay service toll-free at 1-800-877-8339 and ask to be connected to any telephone number.
The Employer Identification Number (EIN) combined with the Plan Number (PN) are used by the IRS, DOL and PBGC as a unique 12-digit number to identify the plan. In addition, PBGC uses the Plan's effective date as an additional confirmation that the premium filing is for a plan that's already in our database (based on previously reported information on Forms 5500 and on premium filings.)
Unless there has been a change to the EIN and/or PN, the EIN and plan number provided on the filing must match what was reported on the most recent premium filing. If there is a new EIN and/or PN, both the EIN and PN from the previous filing must also be reported. The EIN and PN combination may not be the EIN and PN that were previously used to identify a different plan.
If we receive a filing for a plan that doesn't indicate that it's a New Plan and we are unable to match the plan to one that's already in our database, we will be unable to perform further validations and will send an error notice accordingly.
We often receive premium payments that do not contain sufficient information to identify the plan and thus, we cannot credit the payment to the plan's premium account. When we receive a Comprehensive Premium Filing indicating the amount owed, but no payment is credited to the account, we send an invoice for the premium, including late payment charges. This can be avoided by ensuring that the following information be included with all premium payments:
PBGC premium payments will automatically be credited to the premium account if the identifying information noted above is included with the payment.
The best way to avoid issues with your premium payment is to submit the payment via PBGC's online filing website, My PAA (https://egov.pbgc.gov/mypaa/) or www.pay.gov and ensure you enter the correct information into the on-line voucher.
We encourage you to review our "Premium Filing" webpage each year before sending payment. Note that payment instructions changed in early 2020.
A premium filing is required for the first plan year of a New Plan even if no premium is owed. In that first premium filing, be sure to complete item 4f (e.g., check the "new or newly covered plan" box) and provide the adoption date and the date coverage began.
For a New Plan, both the effective date (item 4d) and the Participant count date (item 5a) are the first day of the Premium Payment Year (item 4b(1)).
For plan years after 2013, Variable-rate Premiums for small plans are based on unfunded vested benefits for the prior plan year unless the plan opts out of the Lookback Rule. In most cases, PBGC permission is required to opt out of the Lookback Rule after 2014. See "How to Determine Unfunded Vested Benefits" for details.
PBGC reviews all small plan filings to ensure that plans that didn't opt out are, in fact, using the Lookback Rule and vice versa. PBGC uses the reported UVB valuation date to determine whether the Lookback Rule is used. For example, if a calendar year plan reports 12/31/2020 as the UVB valuation date in the Comprehensive Premium Filing for the 2021 plan year, PBGC assumes the plan (1) has a year-end valuation date and (2) is using the Lookback Rule for purposes of determining its 2021 Variable-rate Premium.
Similarly, if a calendar year plan reports 1/1/2021 as the UVB valuation date in the Comprehensive Premium Filing for the 2020 plan year, PBGC assumes the plan (1) has a beginning of year valuation date and (2) is not using the Lookback Rule for purposes of determining its 2021 Variable-rate Premium.
See "How to Determine Unfunded Vested Benefits" section for more information.
As explained in the "Short Plan Years" part of the "Who Must File" section, in some cases, plans qualify to pay a prorated premium for a Short Plan Year. Plans eligible for prorating report:
See lines 4b and 8 on the illustrative form in the "Data to be Submitted" section.
PBGC has found several instances where this information is inconsistent. For example, we have received filings that indicate the plan year begins on January 1 and ends on December 31, 2018, but also that the premium was prorated because there are 10 months in the Short Plan Year. Such inconsistencies may trigger unnecessary inquiries and/or invoices.
Reminder — Premiums are not prorated for Short Plan Years created as the result of a mid-year Merger or Consolidation.
The appendix overrides the general instructions and provides alternate definitions for certain terms for CSEC Plans. For CSED Plans:
All other rules related to the determination of Unfunded Vested Benefits apply to CSEC Plans. This includes the determination of assets on the UVB Valuation Date, including whether and how to include contributions for the prior plan year made during the 8½ month period after the plan year ends.
OMB has approved this collection of information under control number 1212-0009.
Confidentiality is that provided by the Privacy Act and the Freedom of Information Act.
PBGC estimates that preparation and submission of a premium filing takes approximately 26 minutes on average of in-house time and $692 on average of contracted out cost. The actual time and cost will vary depending on the circumstances of each plan.
If you have comments concerning the accuracy of these burden estimates or suggestions for making the forms or the electronic filing process simpler, please send your comments to Pension Benefit Guaranty Corporation, Office of General Counsel, Regulatory Affairs, 1200 K Street, NW, Washington, DC 20005-4026.