Premium Rates
January 15, 2015 - PBGC
Revised to reflect an increase in the multiemployer plan flat-rate premium provided in The Multiemployer Pension Reform Act of 2014.
Flat-rate premiums
The per-participant flat premium rate for plan years beginning in 2015 is $57 for single-employer plans (up from a 2014 rate of $49) and $26 for multiemployer plans (up from a 2014 rate of $12). For information about future rates, see Scheduled Increases for years after 2015 section below.
Variable-rate premiums (single-employer plans only)
For plan years beginning in 2015, the variable-rate premium (VRP) for single-employer plans is $24 per $1,000 of unfunded vested benefits (UVBs), up from a 2014 rate of $14. This $10 increase was provided in The Bipartisan Budget Act of 2013. The VRP rate is also subject to indexing, but due to statutory rounding rules, indexing had no effect on the 2015 VRP rate.
For 2015, the VRP is capped at $418 times the number of participants (up from a 2014 cap of $412). Plans sponsored by small employers (generally fewer than 25 employees) may be subject to an even lower cap. Multiemployer plans do not pay a VRP.
The Bipartisan Budget Act of 2013 calls for the VRP rate to increase another $5 starting with 2016 (on top of indexing). For information about future rates, see Scheduled Increases for years after 2015 section below.
Current and Historical information
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Per Participant Rate for Flat-Rate Premium
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Variable-Rate Premium
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Per Participant Rate for
Flat-Rate Premium
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Rate per $1,000 UVBs
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Per Participant Cap
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2015
|
$57 |
$24 |
$418 |
$26 |
|---|
|
2014
|
$49 |
$14 |
$412 |
$12 |
|---|
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2013
|
$42 |
$9 |
$400 |
$12 |
|---|
|
2012
|
$35 |
$9 |
N/A |
$9 |
|---|
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2011
|
$35 |
$9 |
N/A |
$9 |
|---|
|
2010
|
$35 |
$9 |
N/A |
$9 |
|---|
|
2009
|
$34 |
$9 |
N/A |
$9 |
|---|
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2008
|
$33 |
$9 |
N/A |
$9 |
|---|
|
2007
|
$31 |
$9 |
N/A |
$8 |
|---|
A complete history of premium rates is available on the Data Tables webpage (2012 Tables S-39 and M-17).
Scheduled Increases for years after 2015
In addition to indexing, the Bipartisan Budget Act of 2013 provided for increases to the single-employer flat-rate premium and VRP cap for 2016. Rates for 2016 are shown below:
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Per Participant Rate for Flat-Rate Premium
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Variable-Rate Premium
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Per Participant Rate for
Flat-Rate Premium
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Rate per $1,000 UVBs
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Per Participant Cap
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|---|
| 2016 |
$64 |
$29 |
$500 |
$26 |
|---|
Amounts shown in red are subject to indexing and therefore might be higher than what's shown above. After 2016 all rates will be subject to indexing. There are no scheduled increases (other than indexing) after 2016.
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.