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Practitioners

Premium Rates

Flat-rate premiums

The per-participant flat premium rate for plan years beginning in 2016 is $64 for single-employer plans (up from a 2015 rate of $57) and $27 for multiemployer plans (up from a 2015 rate of $26).

The increase in the single-employer rate was provided in The Bipartisan Budget Act of 2013.  The increase in the multiemployer rate is the result of indexing.

For information about future rates, see "Scheduled increases for years after 2016" section below.

Variable-rate premiums (single-employer plans only)

For plan years beginning in 2016, the variable-rate premium (VRP) for single-employer plans is $30 per $1,000 of unfunded vested benefits (UVBs), up from a 2015 rate of $24. This $6 increase reflects a $5 increase provided in The Bipartisan Budget Act of 2013 plus a $1 increase due to indexing.

For 2016, the VRP is capped at $500 times the number of participants (up from a 2015 cap of $418). Plans sponsored by small employers (generally fewer than 25 employees) may be subject to a lower cap. Multiemployer plans do not pay a VRP.

For information about future rates, see "Scheduled increases for years after 2016" section below.

Current and historical information

Plan years beginning in

Single-Employer Plans

Multiemployer Plans

Per Participant Rate for Flat-Rate Premium

Variable-Rate Premium

Per Participant Rate for
Flat-Rate Premium

Rate per $1,000 UVBs

Per Participant Cap

2016

$64 $30 $500 $27

2015

$57 $24 $418 $26

 2014

$49 $14 $412 $12

2013

$42 $9 $400 $12

2012

$35 $9 N/A $9

2011

$35 $9 N/A $9

2010

$35 $9 N/A $9

2009

$34 $9 N/A $9

2008

$33 $9 N/A $9

2007

$31 $9 N/A $8

 

PBGC's Pension Insurance Data Tables contain a complete history of premium rates.

Scheduled increases years after 2016

The Bipartisan Budget Act of 2015 provided for increases to the single-employer flat-rate premium and VRP rate for 2017, 2018, and 2019.  With the exception of the single-employer flat-rate premium, rates are also subject to indexing for those years. A summary of the applicable rates (before reflecting indexing) for 2017-2019 is shown below:

Plan years beginning in

Single-Employer Plans

Multiemployer Plans

Per Participant Rate for Flat-Rate Premium

Variable-Rate Premium

Per Participant Rate for
Flat-Rate Premium

Rate per $1,000 UVBs

Per Participant Cap

2017

$69 $33* $500* $27*

2018

$74 $37* $500* $27*

2019

$80 $41* $500* $27*

Rates shown with an asterisk (*) are subject to indexing and therefore might be higher than the amount shown above.  After 2019, all rates are subject to indexing. There are no scheduled increases (other than indexing) for years after 2019.

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.