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PBGC sets 2021 premium rates

October 22, 2020

Article provided by Thomson Reuters

The Pension Benefit Guaranty Corporation (PBGC, a government agency that collects insurance premiums from employers that sponsor insured defined benefit plans) has released the 2021 premium rates.

The 2021 flat premium rate for PBGC's single-employer plan termination insurance program will be $86 per participant, up from the 2020 premium rate of $83. The 2021 premium rate for multiemployer plans will be $31 per participant, up from the 2020 rate of $30.

For 2021, the variable-rate premium (VRP) for single-employer plans will be $46 per $1,000 of unfunded vested benefits, up from the 2020 rate of $45 per $1,000 of unfunded vested benefits.

For 2021, the VRP is capped at $582 times the number of participants (up from a 2020 cap of $561).