The Pension Benefit Guaranty Corporation has released a proposed regulation that would set a uniform due date for all PBGC premiums.  Under current rules, the premium due date depends on the size of the plan and the type of premium.  For example, large calendar-year plans are required to pay fixed-rate premiums on February 28 and variable-rate premiums on October 15 of the premium year.  The proposed rule would apply the October 15 date to all premiums for calendar year plans of any size, to match the extended due date for annual reports on Form 5500. 

The proposed change would accelerate the premium due date for small plans, which currently pay premiums four months after the end of the premium year.  To help small plans meet this deadline, the proposed regulation would allow these plans to use prior-year funding data to determine variable-rate premiums.  The proposed regulation also would change the premium due dates for new plans and terminating plans.

The regulation proposes to simplify the penalty structure for late premiums paid by plans of any size and to reduce the penalty cap for plan sponsors that self-correct.  The proposed regulation also would clarify the rules for calculating the premium funding target for plans in “at-risk” status.

Photo of Amy N. Moore Amy N. Moore

Amy Moore advised some of the world’s largest multinational companies on a wide range of tax, ERISA, health care, and employment law issues concerning all types of compensation arrangements and benefit programs. She was ranked as one of the top 20 employee benefits…

Amy Moore advised some of the world’s largest multinational companies on a wide range of tax, ERISA, health care, and employment law issues concerning all types of compensation arrangements and benefit programs. She was ranked as one of the top 20 employee benefits lawyers in the nation.

Amy’s clients included state governments, national tax-exempt organizations, and private companies as well as Fortune 500 companies. She helped employers and service-providers comply with the complex laws and regulations governing health plans and wellness programs. She advised plan fiduciaries and asset managers on benefit plan investments, prohibited transaction exemptions, and plan governance issues. She had successfully defended employers and fiduciaries in a variety of audits and contested agency proceedings before the Labor Department, Internal Revenue Service, and other federal agencies.