PBGC Issues Estimated Premium Payment Forms
FOR IMMEDIATE RELEASE
December 29, 1999
The Pension Benefit Guaranty Corporation (PBGC) has begun mailing to over 7,000 pension plan administrators new forms (PBGC Form 1-ES ) and instructions for estimating premium payments for the 2000 plan year. PBGC also informed premium payers that all of its PBGC mission-critical computer systems are ready for the date change on January 1, 2000.
The revised forms give plan administrators, for the first time, a "self-correction" method under new safe harbor rules to avoid penalties on estimated premium payments. The change is the latest in a series of steps by PBGC to serve pension practitioners, including extending the Form 1 filing deadline, setting up a toll-free number (1-800-736-2444) with a "One Call Does It All" policy to answer questions, and expanding the services of the Problem Resolution Officer to include plan coverage matters as well as premiums.
Pension plans that were required to report 500 or more participants on the preceding year's PBGC Form 1 must file a PBGC Form 1-ES by the first filing due date (generally the last day of the second full calendar month following the close of the preceding plan year) and a PBGC Form 1 by the final filing due date (generally the 15th day of the tenth full calendar month in the premium payment year). For single employer plans, only the flat rate premium is due by the first filing due date; the variable-rate premium is due by the final filing due date.
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by some 42 million American workers and retirees participating in more than 44,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and investment returns.
NOTE TO EDITORS: If your publication reprints these forms, be sure to clearly mark them as "SAMPLE -- DO NOT USE."
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PBGC No. 00-11