Premiums

Pension Benefit Guaranty Corporation 75-78 December 3, 1975 RE FERENCE: [*1] 400 7 Payment of Premiums OP INION: This is in response to your letter of November 3, 1975 * * * concerning the de claration and payment of premiums.You indic ated that a plan sp onsor's fiscal year ends on October 31, that the plan sponsor's Board of Director s adoptedthe plan on October 31 wit h an ef fective date of October 31 and that the plan sponsor made a contribution to the plan'strust fun d on October 31 . You asked whether a partial year's premium payment an d annual report are due for this planyear. In my opin ion, the plan's plan year both began and e nded on October 31, 1975 and, consequently, a pa rtial year'spremium payment an d submission of the annual report (which can be on t he premium payment form) are required to befiled with this C orporation. Henry Rose Ge neral Counsel

Pension Benefit Guaranty Corporation 74-8 December 23, 1974 RE FERENCE: [*1] 4006(a)( 3) Premium Rates. Initial Rates400 7(a). Payment of Premiums. Due Dates OP INION: This i s a confirmation of the telephone call on November 22, 1974 b y Mr. * * * of our staff regarding the followingquestions: (1) Is a plan covered for purposes of premium payments upon the date it receives a favorable IRSdetermin ation, the date it is established or the e ffective date provided in the pla n documents? (2) If the IRS grants itsdeter mination retr oactive to the plan's effective date, are premiums due for t he interim period and, if so, when are suchpremi ums due? You advise t hat the subject plan was established after Sep tember 1, 1974 with an ef fective date of September 1, 1974and that it is awaiting IRS approval. A plan is covered for the purpose o f premium payments upon the date of establishment or the effective date,whicheve r is lat er. Thus your plan is covered on the date o f establishment, which is normally the dat e on which the plandoc uments are executed. Pre miums are due within 30 days thereafter and should be for the period following such date. Steven E . Schanes Acting Executive Director