Table S-37 PBGC's Historic Premium Rates Single-Employer Program

For Plan Years Beginning Flat-Rate Premium (per participant) Variable-Rate Premium* Premium Rate for
Certain Terminated Plans
(per participant)
September 2, 1974 - December 31, 1977 $1.00 -- --
January 1, 1978 - December 31, 1985 2.60 -- --
January 1, 1986 - December 31, 1987 8.50 -- --
January 1, 1988 - December 31, 1990 16.00 $6 per $1,000 of unfunded vested benefits (Maximum of $34 per participant) --
January 1, 1991 - June 30, 1994 19.00 $9 per $1,000 of unfunded vested benefits (Maximum of $53 per participant) --
July 1, 1994 - June 30, 1995 19.00 $9 per $1,000 of unfunded vested benefits (Maximum of $53 per participant plus 20% of uncapped variable premium in excess of $53 per participant) --
July 1, 1995 - June 30, 1996 19.00 $9 per $1,000 of unfunded vested benefits (Maximum of $53 per participant plus 60% of uncapped variable premium in excess of $53 per participant) --
On or after July 1, 2006 30.00** $9 per $1,000 of unfunded vested benefits (No maximum) --
January 1, 2006 - December 31, 2010 --- --- $1,250 per year for 3 years***
* Only vested liabilities are used when determining underfunding for variable-rate premium payment purposes. These vested liabilities generally have been calculated using a specifi ed percentage of the 30- year Treasury bond rate for the month preceding the month in which the plan year begins. The specifi ed percentage has changed over time. It was 80 percent for plan years beginning from January 1988 to June 1997; 85 percent for plan years beginning from July 1997 to December 2002; and 100 percent for plan years beginning from January 2003 to December 2003. From January 2004 through December 2005, the vested liabilities were calculated using an interest rate equal to 85 percent of the Composite Corporate Bond Rate, as reported by the U.S. Department of the Treasury. Starting in January 2006, vested liabilities were again calculated using 85 percent of the 30-year Treasury bond rate.
** This amount will be adjusted annually after 2006 based on changes in the national average wage index (as defi ned in section 209(k)(1) of the Social Security Act). However, the premium rate will not decline even if the national average wage index declines. The adjusted premium rate will be rounded to the nearest multiple of $1.
*** Applies to underfunded plans that undergo distress or involuntary terminations during the indicated period. Does not apply to underfunded plans terminated while the sponsor is in bankruptcy proceedings if the bankruptcy fi ling date was before October 18, 2005.

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