| For Plan Years Beginning
|
Flat-Rate Premium
(per participant) |
Variable-Rate Premium* |
| September
2, 1974 - December 31, 1977 |
$1.00 |
-- |
| January
1, 1978 - December 31, 1985 |
2.60 |
-- |
| January
1, 1986 - December 31, 1987 |
8.50 |
-- |
| January
1, 1988 - December 31, 1990 |
16.00 |
$6 per $1,000
of unfunded vested benefits (Maximum of $34 per participant) |
| January
1, 1991 - June 30, 1994 |
19.00 |
$9 per $1,000
of unfunded vested benefits (Maximum of $53 per participant) |
| July 1,
1994 - June 30, 1995 |
19.00 |
$9 per $1,000
of unfunded vested benefits (Maximum of $53 per participant plus 20% of
uncapped variable premium in excess of $53 per participant) |
| July 1,
1995 - June 30, 1996 |
19.00 |
$9 per $1,000
of unfunded vested benefits (Maximum of $53 per participant plus 60% of
uncapped variable premium in excess of $53 per participant) |
| On or after
July 1, 1996 |
19.00 |
$9 per $1,000
of unfunded vested benefits (No maximum) |
* Only vested liabilities are used when determining underfunding for variable-rate
premium payment purposes. These vested liabilities have been calculated using
a specified percentage of the 30-year Treasury bond rate for the month preceding
the month in which the plan year begins. The specified percentage has changed
over time. It was 80 percent for plan years beginning from January 1988 to June
1997; 85 percent for plan years beginning from July 1997 to December 2002; and
100 percent for plan years beginning from January 2003 to December 2003. Starting
in January 2004, it reverted to 85 percent of the 30-year Treasury bond rate.
However, Congress will likely (retroactively) change this rate to 85 percent of
a high-grade corporate bond index for plan years beginning from January 2004 to
December 2005. Raising the interest rate used to calculate vested liabilities,
either by increasing the specified percentage or by moving to a higher corporate
bond interest rate base, has the effect of lowering calculated liabilities, thus
reducing underfunding and PBGC’s variable-rate premium revenues.