PBGC Issues 1998 Premium Payment Package
FOR IMMEDIATE RELEASE
January 23, 1998
The Pension Benefit Guaranty Corporation (PBGC) today began mailing to plan sponsors the forms (Form 1 and Schedule A) and instructions for filing premiums for plan years beginning in 1998. The filing for calendar year plans is due on September 15, 1998. PBGC made simplifying changes to the Premium Payment Package in its continuing effort to improve customer service. The following changes were made to this year's package:
- Premiums may be paid either by check or by wire transfer;
- Refunds will be electronically wired to the designated bank. The Bank Routing Number and Bank Account Number need to be included with a refund request;
- The package clarifies that a plan must pay premiums for the plan year in which it transfers all assets and liabilities or ceases to be a covered plan; and
- Regulated Public Utility Plans will no longer use special rules for determining the required interest rate that is used to determine unfunded vested benefits.
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 about 50,000 private-sector defined benefit pension plans (single-employer and multiemployer). 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 PRESS: Please be sure reprints of forms are clearly marked "SAMPLE--DO NOT USE" to avoid use of reproduced forms.
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PBGC No. 98-11