Premiums

This Technical Update provides guidance and relief related to the timing of contribution receipts includable in the asset value used to determine variable rate premiums due in 2020.

Announcement of relief that will generally enable plan sponsors to take advantage of the CARES Act contribution due date extension and still ultimately pay the same variable-rate premium they would have owed had those contributions been made by the regular contribution due date.

Guidance for cooperative and small-employer charity (CSEC) plans on filing premiums for 2019 and 2020 plan years that reflect the premium changes under the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act).

Addresses PBGC’s policy on accepting and responding to amended premium filings based on recharacterization of contributions.

Describes the penalty for failing to timely provide required premium related information to PBGC.

Provides relief from certain premium penalties and in certain situations involving alternative premium funding target elections.

The plan must pay premiums to PBGC for annuitants covered by an insurance contract that does not provide for irrevocable commitments to pay the benefits.

The obligation to pay premiums ceases when plan assets are distributed under priority categories 1- 6 without regard to whether there are residual assets.

Discusses the method used by PBGC to calculate interest on premium underpayments.

For a plan that is being divided into 18 plans, participants should not be double counted for the purpose of premiums.