Table S-35 PBGC's Historic Premium Rates Single-Employer Program

For Plan Years Beginning Flat-Rate Premium (per participant) Variable-Rate Premium*
September 2, 1974 - December 31, 1977 $1.00 --
January 1, 1978 - December 31, 1985 2.60 --
January 1, 1986 - December 31, 1987 8.50 --
January 1, 1988 - December 31, 1990 16.00 $6 per $1,000 of unfunded vested benefits (Maximum of $34 per participant)
January 1, 1991 - June 30, 1994 19.00 $9 per $1,000 of unfunded vested benefits (Maximum of $53 per participant)
July 1, 1994 - June 30, 1995 19.00 $9 per $1,000 of unfunded vested benefits (Maximum of $53 per participant plus 20% of uncapped variable premium in excess of $53 per participant)
July 1, 1995 - June 30, 1996 19.00 $9 per $1,000 of unfunded vested benefits (Maximum of $53 per participant plus 60% of uncapped variable premium in excess of $53 per participant)
On or after July 1, 1996 19.00 $9 per $1,000 of unfunded vested benefits (No maximum)
* Only vested liabilities are used when determining underfunding for variable-rate premium payment purposes. These vested liabilities have been calculated using a specified percentage of the 30-year Treasury bond rate for the month preceding the month in which the plan year begins. The specified percentage has changed over time. It was 80 percent for plan years beginning from January 1988 to June 1997; 85 percent for plan years beginning from July 1997 to December 2002; and 100 percent for plan years beginning from January 2003 to December 2003. Starting in January 2004, it reverted to 85 percent of the 30-year Treasury bond rate. However, Congress will likely (retroactively) change this rate to 85 percent of a high-grade corporate bond index for plan years beginning from January 2004 to December 2005. Raising the interest rate used to calculate vested liabilities, either by increasing the specified percentage or by moving to a higher corporate bond interest rate base, has the effect of lowering calculated liabilities, thus reducing underfunding and PBGC’s variable-rate premium revenues.

Return to Table of Contents