PBGC's Premium Payment Forms to be Mailed in February
FOR IMMEDIATE RELEASE
February 15, 2000
The Pension Benefit Guaranty Corporation (PBGC) announced today that it will complete mailing the premium payment forms (Form 1 and Schedule A) and instructions for the 2000 plan year to some 40,000 pension plan administrators by February 29, 2000. Before receiving the forms, plan administrators can review sample forms and instructions from PBGC's web site for information on calculating their premium payments.
The required interest rate used to value vested benefits for premium payments remains at 85 percent of the annual yield on 30-year Treasury securities for the last full month before the plan year begins. Required interest rates are posted on PBGC's website.
The due date for calendar year plans to file Form 1 is October 15, 2000. Drawing on suggestions from plan administrators, PBGC has simplified the forms. On the new Form 1, for example, plan administrators no longer need to report the Form 5500 participant count. And, on the new Schedule A, filers using the "general rule" method to calculate the variable rate premium no longer need to report the plan value of vested benefits.
These changes are the latest in a series of steps by PBGC to better serve pension practitioners. Other recent service improvements include changing the Form 1 filing deadline to coincide with the Form 5500 filing, 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 standard termination and plan coverage matters, as well as premiums.
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."
— ### —
PBGC No. 00-15