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This page has not been translated. Please go to PBGC.gov's Spanish home page for more information available in Spanish.

Esta página no ha sido traducida. Por favor vaya a la página principal del sitio de español de PBGC para ver información disponible en español.

Pension Insurance Premiums Fact Sheet

PBGC pension insurance premiums are set by Congress. They are a key determinant of whether PBGC has enough money to pay all benefits in the future, or whether the agency runs a deficit.

Premiums Due Each Year

  • Single-employer plans:
    • All single-employer plans pay a flat-rate premium based on the number of participants

    • Underfunded single-employer plans pay an additional variable-rate premium (VRP) based on the amount of unfunded vested benefits

    • The VRP is capped at an amount based on the number of participants

  • Multiemployer plans pay a flat-rate premium based on the number of participants

These rates, including the VRP cap, are subject to indexing. For information about rates applicable for a particular plan year, see our "Premium Rates" table.

Interest Used to Calculate Variable-Rate Premium

Unless a plan has elected to use an alternative provided in the regulations, future benefit payments are discounted using three "spot segment rates" derived from a corporate bond curve.

  • The first applies to benefits expected to be paid within five years of the first day of the plan year
  • The second applies to the following 15 years
  • The third applies to benefits expected to be paid after that

For information about segment rates applicable for a particular plan year, see our "VRP discount rate" table.

Termination Premium

In certain circumstances involving distress and involuntary plan terminations, companies might have to pay a termination premium after PBGC trustees the plan. If the termination applies it is payable for three years and is equal to $1,250 per participant. The termination premium is not subject to indexing.

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