Printer-friendly pageFlat-rate Premiums
The per-participant flat premium rate for plan years beginning in 2018 is $74 for single-employer plans (up from a 2017 rate of $69) and $28 for multiemployer plans (no change from 2017).
The increase in the single-employer rate was provided in The Bipartisan Budget Act of 2015.
Variable-rate Premiums (single-employer plans only)
For plan years beginning in 2018, the variable-rate premium (VRP) for single-employer plans is $38 per $1,000 of unfunded vested benefits (UVBs), up from a 2017 rate of $34. This $4 increase was provided in The Bipartisan Budget Act of 2015 (BBA 2015). Although the VRP rate is subject to indexing in addition to the BBA 2015 increase, indexing had no effect for 2018.
For 2018, the VRP is capped at $523 times the number of participants (up from a 2017 cap of $517). Plans sponsored by small employers (generally fewer than 25 employees) may be subject to a lower cap.
Multiemployer plans do not pay a VRP.
Current and Historical Information
|
Plan years beginning in |
Single-Employer Plans |
Multiemployer Plans |
||
|---|---|---|---|---|
|
Per Participant Rate for Flat-Rate Premium |
Variable-Rate Premium |
Per Participant Rate for |
||
|
Rate per $1,000 UVBs |
Per Participant Cap |
|||
|
2018 |
$74 | $38 | $523 | $28 |
|
2017 |
$69 | $34 | $517 | $28 |
|
2016 |
$64 | $30 | $500 | $27 |
|
2015 |
$57 | $24 | $418 | $26 |
|
2014 |
$49 | $14 | $412 | $12 |
|
2013 |
$42 | $9 | $400 | $12 |
|
2012 |
$35 | $9 | N/A | $9 |
|
2011 |
$35 | $9 | N/A | $9 |
|
2010 |
$35 | $9 | N/A | $9 |
|
2009 |
$34 | $9 | N/A | $9 |
|
2008 |
$33 | $9 | N/A | $9 |
|
2007 |
$31 | $9 | N/A | $8 |
PBGC's Pension Insurance Data Tables contain a complete history of premium rates.
Increases After 2018
With the exception of the single-employer flat premium rate for 2019, all rates and caps are subject to indexing based on increases in the National Average Wage Index (NAWI). In addition, ERISA 4006 provides that for single-employer plans, the 2019 flat and variable premium rates will increase by $6 and $4 respectively.
A summary of the applicable rates reflecting NAWI increases through 2016 is shown below:
|
Plan years beginning in |
Single-Employer Plans |
Multiemployer Plans |
||
|---|---|---|---|---|
|
Per Participant Rate for Flat-Rate Premium |
Variable-Rate Premium |
Per Participant Rate for |
||
|
Rate per $1,000 UVBs |
Per Participant Cap |
|||
|
2019 |
$80 | $42* | $523* | $28* |
Rates with an asterisk (*) are subject to indexing and may be higher if there is an increase in the National Average Wage Index from 2016 to 2017.
After 2019, all rates are subject to indexing. There are no scheduled increases (other than indexing) for years after 2019.
Termination Premiums
For certain distress or involuntary terminations, a special termination premium must be paid to PBGC for three years. For more information, see Termination Premiums.