PBGC Flat-Rate Premiums Not Due Until October 15

Mark Buckberg, CPA, CFE, CFF

If you are gathering your pension fund’s information to submit your PBGC (Pension Benefit Guaranty Corporation) flat-rate premiums by the end of February, just as you do every year, stop now!

The PBGC has given you some breathing room. In a move that should simplify plan administration going forward, the PBGC published a final rule moving the flat-rate premium due date for large single and multi-employer plans, defined as over 500 participants, to the variable rate premium due date.

This rule makes October 15 the sole filing date for flat-rate premiums for large calendar-year plans. Plans are no longer required to make estimated premium payments or filings. In addition, because the single premium payment amount is not adjusted for the time value of money, the plan, rather than the PBGC, will have use of the money for the eight and one-half months from the original February 28 filing date to the new October 15 date.

This action implements part of a PBGC project to make its premium rules more effective and less burdensome. This project includes simplifying due dates, coordinating the due date for terminating plans with the termination process, making conforming and clarifying changes to the variable rate premium rules, and providing for relief from penalties, among other changes. The rest of the project will be implemented by a separate final rule, which the PBGC expects to publish well before the first filing deadline of October 15, 2014.

For additional details, click here to view the proposed and new final rules. This specific action was announced in the Federal Register in January.

 

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