Share
The Pension Benefit Guaranty Corporation (PBGC) insures most private sector (i.e., non-governmental) defined benefit pension plans. The Plan Administrator of each pension plan covered under ERISA is required to annually file prescribed information and pay an insurance premium due in accordance with PBGC's premium regulations. The PBGC recently published the premium rates for single-employer and multiemployer pension plans effective for 2025.
For the 2025 plan year, the per-participant flat-rate premium for single-employer plans is $106.00 (up from $101.00 in 2024) and $39.00 for multiemployer plans (up from $37.00 in 2024). For plan years beginning in 2025, the variable-rate premium (VRP) for single-employer plans remains at $52.00 per $1,000.00 of unfunded vested benefits. For 2025, the VRP is capped at $717.00 times the number of participants (up from the 2024 cap of $686.00). A table of current and historical PBGC premium rates is available here.
For certain distress or involuntary terminations, a special termination premium must be paid to the PBGC annually for three years after plan termination. The premium is currently $1,250.00 per participant.
For more information or if you have any questions, please contact any member of our Employee Benefits practice group.
Related Practices & Industries
This blog/web site presents general information only. The information you obtain at this site is not, nor is it intended to be, legal advice, and you should not consider or rely on it as such. You should consult an attorney for individual advice regarding your own situation. This website is not an offer to represent you. You should not act, or refrain from acting, based upon any information at this website. Neither our presentation of such information nor your receipt of it creates nor will create an attorney-client relationship with any reader of this blog. Any links from another site to the blog are beyond the control of Pullman & Comley, LLC and do not convey their approval, support or any relationship to any site or organization. Any description of a result obtained for a client in the past is not intended to be, and is not, a guarantee or promise the firm can or will achieve a similar outcome.
About Our Labor, Employment and Employee Benefits Law Blog
Alerts, commentary, and insights from the attorneys of Pullman & Comley’s Labor, Employment Law and Employee Benefits practice on such workplace topics as labor and employment law, counseling and training, litigation, union issues, as well as employee benefits and ERISA matters.