PBGC Issues Guidance Increasing Premiums Beginning in 2013
On August 28, 2012, the Pension Benefit Guaranty Corporation (“PBGC”) issued Technical Update 12-1, which provides technical guidance on the effect of the Moving Ahead for Progress in the 21st Century Act (MAP-21) on PBCG premiums. Under this guidance, the flat rate per participant premium applicable to multiemployer plans is increased from $9 to $12 beginning in 2013. Pursuant to this guidance, beginning in 2013, the flat rate per participant premium for single employer plans is also increased from $35 to $42, and the variable rate premium (also applicable to single employer plans) is capped at $400. After 2013, the premiums will be indexed for inflation.