Electronic Filing of PBGC Premiums Becomes Mandatory
FOR IMMEDIATE RELEASE
May 31, 2006
WASHINGTON-The Pension Benefit Guaranty Corporation (PBGC) today announced it will publish a rule requiring sponsors of insured defined benefit pension plans to submit their premium filings to the agency electronically. Under a final rule appearing in tomorrow's Federal Register and effective July 1, sponsors of large plans (those with 500 or more participants) must file premiums electronically for plan years beginning on or after January 1, 2006. The requirement will extend to all other plan sponsors for plan years beginning on or after January 1, 2007. The PBGC urges all premium filers to "e-file" before being required to do so.
Since first offered on a voluntary basis for plan years beginning in 2004, the PBGC's online application, My Plan Administration Account (My PAA), has afforded pension practitioners the means to prepare and submit premium filings and payments electronically. The e-filing options have since been expanded to permit practitioners to use compatible private-sector software to prepare filings for electronic submission. My PAA processes all types of premium filings (Form 1-ES, Form 1-EZ, Form 1, and Form 1 with Schedule A). If a payment is due, My PAA allows filers to pay via ACH, electronic check, or credit card and select a payment date. Payment may also be made outside of My PAA, such as by paper check or wire transfer.
For detailed information or to set up a My PAA account, filers should go to the "Practitioners" page of the PBGC's website, www.pbgc.gov, and click on the "Online Premium Filing (My PAA)" link. Pension practitioners with additional questions about My PAA should call the PBGC's toll-free practitioner number at 1-800-736-2444 (and select the "premium" option). Note: TTY/TDD users may call the federal relay service toll-free at 1-800-877-8339 and ask to be connected.
The PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in over 30,000 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 by investment returns.
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PBGC No. 06-49