The Pension Benefit Guaranty Corp. on Friday published new premiums following the passage in Congress of so-called pension-smoothing provisions in the Highway and Transportation Funding Act of 2014.
Beginning in 2015, single-employer plans that pay a per-participant flat premium will see an increase to $57 per participant, up from $49 in 2014.
The per-participant rate in multiemployer plans will increase to $13 per head, up from $12 in 2014.
Recommended For You
A variable-rate premium option, available only to single-employer plans, will increase to $24 for every $1,000 of unfunded liabilities, up from $14 in 2014.
The substantial increase in the variable-rate premium was authorized in the Bipartisan Budget Act of 2013.
In June, PBGC's annual report revealed vast improvement in the funding of its single-employer insurance plan. 2013's projected deficit of $27.4 billion was narrowed to $7.6 billion by 2023.
But the news was much bleaker for multiemployer plans.
The annual report said that insolvencies affecting more than 1 million of the 10.4 beneficiaries in multiemployer plans are "more likely and more imminent."
Absent premium increases and changes to the Pension Protection Act of 2006, the multiemployer program is "more likely than not to run out of funds in eight years, and highly likely to do so in 10 years," the PBGC said.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
