Contents

2014
 

Premium Payment Instructions
 
   

          

        

        

        

        

            

          

          

        

            

        

  

       

         

               

           

Contents

Introduction and What’s New..............................................................................................

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1
 

Who Must File 3
 

When to File 4
 

How to File 8
 

How to Count Participants...................................................................................................

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9
 

How to Determine Unfunded Vested Benefits 13
 

Data to be Submitted 21
 

Description of Data Elements 25
 

Late Payment Charges 38
 

Correcting Filings, Credit Balances, Reconciling Estimates 41
 

Recordkeeping Requirements and PBGC Audits 44
 

Appendices
 

 Appendix 1 – Definitions 45
 

 Appendix 2 – Contact information 49
 

 Appendix 3 – Online Premium Filing with My PAA 51
 

 Appendix 4 – Paperwork Reduction Act Notice.................................................................. 55
 
       

   

                               

                             

                                       

  

                                 

             

                                   

             

                                 

                           

                               

                         

           

                             

                                        

                             

        

                                               

                              

                         

                               

       

   

                             

                                   

                                   

        

                                   

                                     

                         

                                       

            

   

                                   

                                  

Introduction and What’s New

Introduction

Payment of premiums to the Pension Benefit Guaranty Corporation (PBGC) is required by sections 4006 and

4007 of the Employee Retirement Income Security Act of 1974 (ERISA), and PBGC’s Premium Regulations

(29 CFR Parts 4006 and 4007). You can find these regulations by going to the Resources Page of PBGC’s Web

site (www.pbgc.gov).

There are two kinds of annual premiums: the Flat‐rate Premium, which applies to all plans, and the Variable‐rate

Premium, which applies only to Single‐employer Plans.

Every covered plan under ERISA section 4021 must make a premium filing each year. The due dates are

described in the “When to File” section.

Electronic filing is mandatory for all plans. My Plan Administration Account (My PAA) is a secure Web‐based

application that enables pension plan professionals to electronically submit premium filings to PBGC in

accordance with PBGC’s regulations. Electronic filings may be prepared using My PAA’s data entry screens or

with compatible private‐sector software. See “How to File” section for more information. For more information

on e‐filing options, see Appendix 3.

This document provides information for plans paying premiums for plan years beginning in 2014, including

instructions for each data element that must be reported. If you are filing for a previous year, you must follow

the instructions for that year (available from the “Premium Payment Instructions and Addresses” section of

the Practitioners Page at www.pbgc.gov).

If you are amending a filing for a plan year that did not begin in 2014, the rules in this document do not apply.

You must follow the instructions and regulations applicable for that plan year. However, because contact

information and information about electronic funds transfers change periodically, the most recent information

(available at www.pbgc.gov) should be used instead of the information included in an instructions booklet for

a prior plan year.

Defined terms

Appendix 1 provides definitions for terminology used throughout this document. In general, the defined terms

are capitalized to signal the reader to refer to Appendix 1 for more information. However, the convention of

capitalizing the defined terms is not followed for a few defined terms such as “participant,” “we,” “you,” and

“your.”

How to Obtain Instructions

It is the responsibility of the Plan Administrator to obtain the necessary instructions and submit filings on time.

The easiest way to get the most current information and instructions for premium filings is to go to the

“Premium Payment Instructions and Addresses” section of the Practitioners Page at www.pbgc.gov. In

addition, if you use My PAA to create or import filings, instructions for each data item are available by clicking

the instructions link by the item.

What’s New

As a result of recent amendments to our premium regulations, there are significant changes from last year. We

encourage you to read this entire booklet carefully. Here are the key items to note for 2014:

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Introduction and What’s New

 Regulatory Changes

o	 Due Dates — Due dates for many plans have changed.  Key changes include:

–	 Elimination of Early Flat‐rate Premium Filing for Large Plans — Large plans now pay their Flat‐rate

Premium at the same time as their Variable‐rate Premium.

–	 Change in due date for Small Plans — The due date for Small Plans has been accelerated.

–	 Change in due date for Standard Terminations — In some cases, the due date is accelerated to

streamline the premium filing process with the termination process.

See “When to File” section for more information about due dates   

o	 Lookback Rule for Small Plans —Variable‐rate Premiums for most Small Plans are now based on the

prior year’s unfunded vested benefits (UVBs) instead of the current year’s UVBs.  However, small plans

may opt out of the Lookback rule for 2014 and subsequent years.  See “How to Determine Unfunded

Vested Benefits” section for rules related to this option.

o	 New Terminology — Some new terminology has been introduced (e.g. Continuation Plan, Lookback

Rule) and the meaning of some prior terminology has been revised (e.g., Small Plan).  For your

convenience, new or modified definitions are highlighted in the “Definitions” section.

 Changes in Premium Rates

o	 Flat‐rate Premium Increase —The per‐participant flat‐rate premium rate for single‐employer plans is

$49 up from $42.  The rate for multiemployer plans remains at $12.

o	 Variable‐rate Premium Increase — The rate per $1,000 of unfunded vested benefits is $14, up from $9.

o	 Cap on Variable‐rate Premium — The MAP‐21 Cap on the Variable‐Rate Premium cap is $412 times the

number of participants, up from $400.

 Other

o	 New Payment Option — Premium payments can now be made electronically via a secure, free, and

user‐friendly Federal website (www.pay.gov).   We encourage all filers to consider using this option as it

minimizes the potential for errors (e.g., incorrect account numbers).   See “Payment Options in

Appendix 3 for more information.

o	 Participant Count Breakdown — The total Participant Count is now broken down into three categories:

(1) active participants, (2) terminated vested participants, and (3) retirees and beneficiaries receiving

payment.  See item 5b(2) of the illustrative form and related instructions.

o	 Business Codes — These instructions no longer include a listing of Business Codes.  Instead, the codes

are posted on the “Premium Filings” section of the Practitioners Page at www.pbgc.gov.  See

“Description of Data Elements” section (item 1b).

o	 Certification rules — We are modifying the certification method for My PAA screen‐prepared and

imported filings to allow the plan administrator to certify an e‐filing manually instead of having to log

into My PAA and certify electronically.  See the Online Premium Filing with My PAA Page on our

website for information about the availability of this feature.

The above list is not intended to be an exhaustive list of all the changes. It excludes several minor changes,

especially changes that are likely to affect relatively few plans (e.g., changes applicable only to New or Newly

covered plans, changes to the VRP exemption for plans doing a standard termination, slight modification in

definition of Small Plan, etc.).

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Who Must File

All Covered Plans Must File

The Plan Administrator of each pension plan covered under ERISA section 4021 is required annually to file the

prescribed premium information and pay the premium due in accordance with PBGC’s Premium Regulations and

instructions.

Most private‐sector defined benefit plans that meet tax qualification requirements are covered. If you are

uncertain whether your plan is covered, you should promptly request a coverage determination. Note that a

request for a coverage determination does not extend the due date for any premium that is finally determined

to be due.

If your plan is covered, you must make a premium filing even if no premium is owed.

One Plan or More Than One?

If several unrelated employers participate in a program of benefits wherein the funds attributable to each

employer are available to pay benefits to all participants, then there is a single Multiemployer or Multiple‐

employer Plan and the Plan Administrator must file and pay premiums for the plan as a whole. Separate filings

and premiums cannot be submitted for each individual employer.

If several employers participate in a program of benefits wherein the funds attributable to each employer are

available only to pay benefits to that employer’s employees, then there are several plans (one for each

employer) and the Plan Administrator must file and pay premiums separately for the plan of each individual

employer.

If separate plans are maintained for different groups of employees, regardless of whether each is maintained by

the same employer or by employers that are part of the same controlled group, then the Plan Administrator(s)

must file and pay premiums separately for each plan.

When Filing Obligation Ceases

You must continue to make premium filings and pay premiums through and including the plan year in which any

of the following occurs:

 Plan assets are distributed in satisfaction of all Benefit Liabilities pursuant to the plan’s termination.  

 A trustee is appointed for the plan under ERISA section 4042.

 The plan disappears by transferring all its assets and liabilities to one or more other plans in a Merger or

Consolidation.

 The plan ceases to be a covered plan under ERISA section 4021.

The following examples illustrate when the filing obligation ceases:

Example 1 – A calendar‐year plan terminates in a standard termination with a termination date of September 29,

2013. On April 6, 2014, assets are distributed in satisfaction of all Benefit Liabilities. The Plan Administrator must

file and make the premium payments for the 2013 and 2014 plan years.

Example 2 – A plan with a plan year beginning July 1 and ending June 30 terminates in a distress termination

with a termination date of April 27, 2014. On July 6, 2014, a trustee is appointed to administer the plan under

ERISA section 4042. Premium filings and payments must be made for this plan for both the 2013 and 2014 plan

years, because a trustee was not appointed until after the beginning of the 2014 plan year.

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When to File

Introduction

This section describes when premium filings are due. A filing includes both the submission of required data and

the payment of any required premium. In general, if a filing is not made by the due date, late payment charges

will apply. Late payment charges include both interest charges and penalty charges. See “Late Payment Charges”

section for more information on the ramifications of missing a deadline.

Normal Premium Due Date

The Normal Premium Due Date applies unless:

 The plan is a New or Newly Covered Plan,

 The plan year changed since last year, or

 All assets are distributed during the Premium Payment Year pursuant to a standard termination.

The Normal Premium Due Date is the 15th day of the 10th full calendar month in the plan year (e.g., generally

October 15th for calendar‐year plans).1 If the Normal Premium Due Date falls on a Saturday, Sunday or Federal

Holiday, the due date is automatically extended to the next business day2

.

Transition Rule for Small Plans

Before 2014, the due date for small plans was last day of the 16th full calendar month following the end of the

plan year preceding the Premium Payment Year (i.e., April 30th after year‐end for small calendar‐year plans). For

plans that were considered small for 2013, the revised Normal Premium Due Date means premiums will be due

61⁄2 months earlier than they would have been absent the recent amendments to our premium regulations. To

give such plans time to adjust to the new rules and to spread out the time between the 2013 and 2014 premium

due dates, the Normal Premium Due Date for plans that were considered small 3 for 2013 is automatically

extended to the 15th day of the 14th full calendar month beginning on or after the first day of the plan year (e.g.,

generally February 15, 2015 for calendar‐year small plans). Starting in 2015, Small Plans will be subject to the

same Normal Due Date rules as other plans.

The following table shows the Normal Premium Due Dates for plan years beginning in 2014:

1	 Technically, the due date is the 15th day of the 10th full calendar month that begins on or after the first day of the Premium Payment

Year. In situations involving a short plan year, this due date may not be “in the plan year.”

2	 See “Late Payment Charges” section for information on how late charges are determined if payment is made after an automatically

extended due date. 3 The recent amendments to the premium regulation also changed the criteria for determining whether a plan is small. For purposes of

this transition rule, the prior rules apply. Specifically, the extended due date applies if the plan was considered small for the 2013 plan

year.

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When to File

2014 Normal Premium Due Dates

Premium Payment Premium Due Date Premium Payment Premium Due Date

Year Begins Small Plansa Other Plans Year Begins Small Plansa Other Plans

1/1/2014 2/17/2015b

10/15/2014

01/02 ‐ 02/01/2014 3/16/2015b 11/17/2014b 07/02 ‐ 08/01/2014 09/15/2015 05/15/2015

02/02 ‐ 03/01/2014 4/15/2015 12/15/2014 08/02 ‐ 09/01/2014 10/15/2015 06/15/2015

03/02 ‐ 04/01/2014 5/15/2015 01/15/2015 09/02 ‐ 10/01/2014 11/16/2015b 07/15/2015

04/02 ‐ 05/01/2014 6/15/2015 02/17/2015b 10/02 ‐ 11/01/2014 12/15/2015 08/17/2015b

05/02 ‐ 06/01/2014 7/15/2015 03/16/2015b 11/02 ‐ 12/01/2014 1/15/2016 09/15/2015

06/02 ‐ 07/01/2014 8/17/2015b 04/15/2015 12/02 ‐ 12/31/2014 2/16/2016b 10/15/2015

a

For purposes of this table, “small” refers to the plan’s size in 2013. See footnote 3 on prior page.

b The actual due date falls on a Saturday, Sunday or Federal Holiday, so the date shown above is the first business day
 

following the actual due date.
 

Due Date for Special Situations

In the situations noted below, premiums may be due on a date other than the Normal Premium Due Date:

 The plan is a New or Newly Covered Plan,

 The plan year changed since last year, or

 All assets are distributed during the Premium Payment Year pursuant to a standard termination.

The due dates for these situations are described below.  For all of these situations, if the adjusted due date falls

on a Saturday, Sunday or Federal Holiday, the due date is automatically extended to the next business day.    

New and Newly Covered Plans  

In some cases, these first time filers cannot have their filings ready by the Normal Due Date. For example,

consider a calendar year plan that is adopted November 1st with an effective date retroactive to January 1.

Because the plan was adopted after the Normal Premium Due Date (October 15th), a later due date is warranted.

To accommodate such plans, the due date for New and Newly Covered Plans is the latest of:

 The Normal Due Date

 90 days after the date of the plan’s adoption,

 90 days after the date on which the plan became covered by title IV of ERISA, or

 In the case of a Small Plan that is also a Continuation Plan, 90 days after the UVB Valuation Date.

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When to File

These rules are illustrated in the following examples:

Example 1 – Plan A, a calendar‐year plan was adopted August 1, 2014 with a retroactive effective date of

January 1, 2014. Plan A is not a Continuation Plan or a Small Plan. The due date for Plan A’s first premium filing

is October 30, 2014 (90 days after August 1, 2014) because that date is later than the Normal Premium Due Date

(October 15, 2014).

Example 2 – The situation for Plan B is identical to Plan A (see Example 1) except that the plan was adopted one

month earlier, July 1, 2014. The due date for Plan B’s first premium filing is October 15, 2014, the Normal

Premium Due Date because that date is later than 90 days after the adoption date.

Example 3 – A professional service employer maintains Plan C, a Small Plan with a calendar plan year. From

September 2, 1974 through September 30, 2014, Plan C never had more than 25 active participants, and thus

was not a covered plan under ERISA section 4021. On October 1, 2014, a few employees were hired and became

covered by the plan resulting in a total active participant count of 26 and therefore, the plan became a covered

plan on that date. Plan C will continue to be a covered plan regardless of how many active participants the plan

has in the future. Note that the Premium Payment Year begins on January 1, 2014, even though the plan did not

become covered until after that date. The due date for the plan’s first premium filing is the Normal Premium

Due Date for a Small Plan (February 15, 2015) because that date is later than December 30, 2014 (90 days after

October 1, 2014)

Plans Changing Plan Years

For a plan that changes its plan year, the filing due dates for the short year are unaffected by the change in plan

year. 

 The Normal Premium Due Date, or

 30 days following the date on which a plan amendment changing the plan year was adopted.

The following examples show the due dates for plans changing plan years:

Example 1 – By plan amendment adopted on December 1, 2014, a plan that is not a Small Plan change

plan year beginning January 1 to a plan year beginning June 1. This results in a short plan year beginni

However, for the first plan year under the new cycle, the due date is whichever is later:

s from a

ng January

1, 2014, and ending May 31, 2014. Premiums for the short plan year are due October 15, 2014, the Normal

Premium Due Date.

For the plan year beginning June 1, 2014, the premiums are due by the Normal Premium Due Date (March 15,

2015) because that is later than 30 days after the date the plan amendment changing the plan year was adopted

(December 31, 2014).

Example 2 – By plan amendment adopted on January 7, 2015, and made retroactively effective to April 1, 2014,

a plan that is not a Small Plan changes from a plan year beginning on March 1 to a plan year beginning on April 1.

For the March 1, 2014 ‐ March 31, 2014 short plan year, the premium is due December 15, 2014. For the new

plan year beginning April 1, 2014, the due date is 30 days after the adoption of the plan amendment changing

the plan year (February 6, 2015) because that is later than the Normal Premium Due Date (January 15, 2015).

Assets Distributed Pursuant to a Standard Termination

For the Premium Payment Year in which all plan assets are distributed pursuant to standard termination, it’s

possible that the employer will be out of business or plan records and personnel will not be available by the

Normal Premium Due Date. To streamline the final premium payment with the other activities related to a

standard termination, the due date for a plan in this situation is the earlier of:

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When to File

 The Normal Premium Due Date (i.e., the date premiums would have been due had the plan not been

terminated), or

 The date when the post‐distribution certification4 is filed with us.

Disaster Relief

From time to time PBGC grants disaster relief by waiving late filing and payment penalties for certain plans that

are unable to meet the filing deadline as a result of a major disaster (e.g., a hurricane). If such relief is granted, a

Disaster Relief Announcement explaining what relief has been granted and how to claim the relief will be posted

on the Resources Page at www.pbgc.gov.

Additional Information

You can find detailed rules about filing due dates in PBGC’s premium payment regulation (29 CFR Part 4007).

You can access this regulation through the Resources Page at www.pbgc.gov.

4 The post‐distribution certification (Form 501) is a document required to be submitted to PBGC as part the standard termination process

See § 4041.29 for additional information.

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How to File

General

To make a complete premium filing, you must report certain required data and submit any required premium

payment by completing and submitting a comprehensive premium filing.

A list of the data that must be reported is included in the “Data to be Submitted” section. For simplicity, the

required data elements are shown in a traditional “form” format. The purpose of the “form” is to provide a

comprehensive list of data that must be submitted electronically. These instructions are written as if they

related to the illustrative form (see “Description of Data Elements” section).

The “form” is for illustrative purposes only; you may not submit your filing using a paper form unless you

request and receive an exemption from e‐filing.

Filing Method

Electronic premium filing is mandatory5

. Electronic filing is done through PBGC’s e‐filing application, My Plan

Administration Account (My PAA), which you access through the “Online Premium Filing (My PAA)” section of

the Practitioners Page at www.pbgc.gov.

You may prepare the filing directly using My PAA’s data entry screens. Alternatively, you may use approved

private‐sector software to prepare a filing and then “import” the data into My PAA’s editing screens or “upload”

the filing via My PAA. Approved private sector‐software is able to place your filing in an electronic file that is in

“XML” format and meets PBGC specifications.

Depending on how you choose to prepare electronic filings (My PAA data entry screens or private‐sector

software), the order in which the questions are asked may differ from the order shown on the forms. In addition,

in some cases, the software may perform certain calculations instead of requiring that you manually enter each

required data element. If you use My PAA’s data entry and editing screens, instructions are available on‐line.

Appendix 3 provides an introduction to My PAA. PBGC’s Web site (www.pbgc.gov) provides detailed, and often

more up to date, information about My PAA.

Paying Premiums

Although e‐filing of premium information through My PAA is mandatory, premium payments may be made

either within My PAA or outside of My PAA. If you choose to pay within My PAA, you may pay by an electronic

funds transfer using Automated Clearing House (ACH) or by electronic check. If you pay outside of My

PAA, you may pay by electronic funds transfer (ACH or Fedwire), paper check or on‐line via www.pbgc.gov, a

secure, free, and user‐friendly Federal website from which you can make secure electronic payments direct to

many Federal Agencies, including PBGC. We recommend using pay.gov to minimize the potential for errors (e.g.,

incorrect account numbers). Additional information on payment options is included in Appendix 3.

5 PBGC may grant a request for an exemption from the electronic filing requirement for good cause in appropriate circumstances. Such

a request must be made in writing (e‐mail, letter or fax). See Appendix 2 for information on where to send requests.

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How to Count Participants

General

Plan participants must be counted because Flat‐rate Premiums are based on the number of participants,

as are both caps on the Variable‐rate Premium (MAP‐21 Cap and Small Employer Cap). In addition, the

number of participants affects whether variable‐rate premiums are based on current or prior (i.e.,

“lookback”) year measurements. The date on which participants are counted is called the “Participant

Count Date.”

Participant Count Date

The Participant Count Date is the last day of the plan year preceding the Premium Payment Year except

as follows:   

 If the plan is a New Plan, the Participant Count Date is the first day of the Premium Payment Year

(i.e., the effective date).  

 If the plan is a Newly Covered Plan, the Participant Count Date is the first day of the Premium

Payment Year. This is the case even if the plan wasn’t covered under ERISA section 4021 on that

date.

 If the plan is the transferee plan in a Merger (i.e., the continuing plan) or the transferor plan in a

Spinoff and the transaction meets the conditions described below, the Participant Count Date is the

first day of the Premium Payment Year. A plan Merger or Spinoff is covered by this rule if:

- a Merger is effective on the first day of the transferee plan’s premium payment year, or a

Spinoff is effective on the first day of the transferor plan’s premium payment year, and

- the Merger or Spinoff is not de minimis, as defined in the regulations under section 414(l) of the

Code with respect to Single‐employer Plans, or in PBGC’s regulation under ERISA section 4231

(29 CFR Part 4231) with respect to Multiemployer Plans.

The following examples illustrate the determination of the Participant Count Date.  

Example 1 – An ongoing plan changes its plan year from a calendar year to a plan year that begins June 1,

effective June 1, 2014. The Participant Count Date for the:

 January 1, 2014 – May 31, 2014 plan year is December 31, 2013,  

 June 1, 2014 – May 31, 2015 plan year is May 31, 2014.

Example 2 – A new calendar‐year plan is adopted February 18, 2014, retroactively effective as of January

1, 2014. The Participant Count Date is January 1, 2014.

Example 3 – A new calendar‐year plan is adopted January 1, 2014, effective April 1, 2014. The

Participant Count Date is April 1, 2014.

Example 4 – Plan A has a calendar plan year and Plan B has a July 1 ‐ June 30 plan year. Effective January

1, 2014, Plan B merges into Plan A (and the Merger is not de minimis). Because the Merger occurred on

the first day of Plan A’s 2014 plan year, Plan A’s Participant Count Date for the 2014 Flat‐rate Premium is

January 1, 2014. Note that the Participant Count includes Plan A participants that used to be covered by

Plan B.

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How to Count Participants

Example 5 – Plan A has a calendar plan year. Effective January 1, 2014, Plan A spins off assets and

liabilities to form a New Plan, Plan B (and the Spinoff is not de minimis). Plan A’s Participant Count Date

is January 1, 2014. (Plan B’s Participant Count Date also is January 1, 2014, since it is a New Plan that

became effective on that date.)

Example 6 – A calendar‐year plan that was not a covered plan under ERISA section 4021 becomes

covered on May 31, 2014. The first day of the Premium Payment Year is January 1, 2014, and the

Participant Count Date is January 1, 2014.

Participant

For premium purposes, “participant” means an individual (whether active, inactive, retired, or

deceased) with respect to whom the plan has Benefit Liabilities as of the Participant Count Date.

Beneficiaries and alternate payees are not counted as participants. However, a deceased participant will

continue to be counted as a participant if there are one or more beneficiaries or alternate payees who

are receiving or have a right to receive benefits earned by the participant.

An individual is not counted as a participant after all Benefit Liabilities with respect to the individual are

distributed through the purchase of irrevocable commitments from an insurer or otherwise. In addition,

a non‐vested individual is not counted as a participant after:

 A deemed “zero‐dollar cashout,”

 A one‐year break in service under plan rules, or

 Death.

Cashouts

If the plan has a separate cashout provision for zero benefits, terminated non‐vested participants are

deemed to be cashed out as of the date specified in the deemed cashout provision or, if no date is

specified, as of the employment termination date. If the plan provides that zero benefit amounts will be

deemed to be paid as soon as possible, terminated non‐vested participants also will be deemed to be

cashed out as of the employment termination date.

If the plan does not have a separate cashout provision for zero benefits, but does have a mandatory

cashout of small benefit amounts (e.g., benefits $5,000 or less), terminated non‐vested participants are

deemed to be cashed out in the same manner as terminated vested participants. If the plan is silent as

to the timing of actual cashouts of terminated vested participants, the plan is deemed to read “as soon

as practicable” and the terminated non‐vested participants are deemed to be cashed out immediately

upon termination of employment. If the plan specifies a date as of which actual cashouts of terminated

vested participants take place (e.g., on the first day of the next month), that rule also would apply to

deemed cashouts of terminated non‐vested participants. These rules do not apply if, despite plan

language, the plan has an obvious pattern or practice of delaying distributions for long periods.

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How to Count Participants

Example – Suppose a calendar‐year plan provides that if a participant terminates employment and the

participant’s vested benefit has a value of $5,000 or less, the plan will pay the vested benefit to the

participant in a lump sum as of the first of the month following termination of employment. Suppose

further that no plan provisions specifically address payment of benefits upon termination of

employment by non‐vested participants. If a participant with a non‐vested accrued benefit terminates

employment on December 15, 2013, the participant will be included in the Participant Count as of

December 31, 2013 (because the cashout is deemed to occur on January 1, 2014, the first of the month

following termination of employment). If, as is typically the case for a calendar‐year plan, the plan’s

Participant Count Date for 2014 is December 31, 2013, a Flat‐rate Premium must be paid for this

participant for 2014.

Breaks in Service

A non‐vested individual ceases to be a participant for premium purposes when the individual incurs a

one‐year break in service under the plan.

If the break in service occurs in a service computation period that coincides with the plan year preceding

the Premium Payment Year, we treat the individual as not being a participant for purposes of

determining the premium for the Premium Payment Year.

Example 1 – A calendar‐year plan with five‐year vesting provides that a participant who performs 500 or

fewer hours of service in a service computation period incurs a one‐year break in service as of the last

day of the computation period. The plan also provides that the annual service computation period

begins on the anniversary of a participant’s date of hire. Consider an employee who was hired on

December 1, 2009, and terminates employment on February 1, 2013. Further assume that this

participant does not perform more than 500 hours of service during the December 1, 2012 – November

30, 2013 computation period. This participant incurs a one‐year break in service on November 30, 2013.

Since the break occurred before December 31, 2013 (the Participant Count Date for the 2014 premium),

the individual would not be included in the Participant Count for 2014.

Example 2 – A calendar‐year plan provides that a participant who performs 500 or fewer hours of

service in a service computation period incurs a one‐year break in service as of the last day of the

computation period. The plan also provides that the annual service computation period is the calendar

year. Consider a non‐vested employee who does not perform more than 500 hours of service during the

2013 calendar‐year computation period. This participant incurs a one‐year break in service on December

31, 2013. Although the break occurs on the Participant Count Date for the 2014 premium, the individual

would not be included in the Participant Count for 2014.

Comparison to Form 5500

The Participant Count for the Premium Payment Year and the number of participants reported for

item 6 of Form 5500 for the plan year preceding the Premium Payment Year (e.g., the 2014 premium

filing and the 2013 Form 5500) are generally determined as of the same date (i.e., the last day of the

plan year preceding the Premium Payment Year). However, the two counts may differ. For example:

 For premium purposes, individuals who are earning or retaining credited service but with respect to

whom a plan has no Benefit Liabilities are not counted as participants. But individuals who are

earning or retaining credited service are considered to be participants for purposes of item 6 of the

Form 5500, even if the plan has no Benefit Liabilities with respect to them.

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How to Count Participants

 There is a difference in the break‐in‐service rules that apply when counting participants for premium

purposes and for purposes of item 6 of Form 5500. For purposes of item 6 of Form 5500, whether a

non‐vested individual is excluded from the count because of a break in service depends upon the

plan language; under the provisions of most plans, the instructions for item 6 would require that a

separated non‐vested individual be counted as a participant until the individual has incurred five or

more consecutive one‐year breaks in service. For premium purposes, on the other hand, a non‐

vested individual is excluded from the count because of a break in service when the individual has

incurred a one‐year break in service under the terms of the plan.

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How to Determine Unfunded Vested Benefits

General

“Unfunded vested benefits” (UVBs) is the term used to describe the underfunding measure on which the

Variable‐rate Premium is based. For Variable‐rate Premium purposes, unfunded vested benefits means

the excess, if any, of:

 The Premium Funding Target, over

 The fair market value of plan assets.

This section describes how and when the Premium Funding Target and fair market value of plan assets

are determined for this calculation.  

Which year’s UVBs

In general, Variable‐rate Premiums are based on UVBs for the Premium Payment Year. However, most

Small Plans are subject to a Lookback Rule, under which the Variable‐rate Premium for the Premium

Payment Year is based on UVBs for the plan year preceding the Premium Payment Year ‐ for example,

the 2014 Variable‐rate Premium is based on UVBs for 2013 (the Lookback Year). For 2014, a Small Plan

is required to use the Lookback Rule unless the plan:

 Is New or Newly Covered or

 Opts out of the Lookback Rule (as described below).

Special rules for New and Newly Covered Small Plans

The reason the Lookback Rule doesn’t apply to New and Newly Covered Small Plans

plans don’t have a covered prior year to look back to.   So, special rules apply.  If a N

Covered Plan is Small and:

 Was created as the result of a non de minimis spinoff6

  or consolidation (i.e., “Continuation Plans”),

the Variable‐rate Premium for the Premium Payment Year is based on UVBs for that same year.

These plans do, however, get more time to complete their filings (see “When to File” section).

 Is not a Continuation Plan, the plan is exempt from the Variable‐rate Premium for its first year of

filing.  Note that such a plan could be either a newly established plan or a plan resulting from a

de minimis spinoff.  The exception applies in either case.

Opting out of the Lookback Rule Starting with 2014  

A Small Plan that would otherwise be required to use the Lookback Rule for 2014 may opt out of doing

so, and instead use current year UVBs to determine the Variable‐rate premium7

.   A decision to opt out

of the Lookback Rule remains in place for all subsequent years unless and until PBGC grants permission

for you to start using the Lookback Rule in the future.  PBGC will review such requests based on the facts

is because such

ew or Newly

and circumstances and will grant such requests only for good cause in appropriate circumstances. PBGC

will not grant requests made solely to reduce premiums. Information on how to make such a request

will be provided in time for 2015 premium filings.

6 See the regulations under section 414(l) of the Code with respect to Single‐employer Plans, or PBGC’s regulation under ERISA

section 4231 (29 CFR Part 4231) with respect to Multiemployer Plans for the definition of de minimis spinoff.

7 The only Small Plans that don’t fall into this category are those that are New or Newly Covered for 2014.

Page 13
           

   

                                     

                                      

                         

                                     

                                   

                    

                       

                                           

                                    

                                 

                        

                                         

                                   

                                

                                   

             

   

                             

                           

                              

                                   

                              

                               

                                   

               

                             

How to Determine Unfunded Vested Benefits

No special election is required to opt out of the Lookback Rule starting with 2014, nor is PBGC approval

required. To opt out, simply use UVBs measured as of the UVB Valuation Date for the current year to

determine the 2014 Variable‐rate Premium and report those data in the Variable‐rate Premium

section of the filing. Please use extra caution to ensure the data are entered correctly because if the

reported UVB Valuation Date8 is within the Premium Payment Year, we will expect all future filings to be

completed using current year UVBs to determine the Variable‐rate Premium.

Opting out of the Lookback Rule Starting with a Year after 2014

If a plan had the opportunity to opt out in a prior year, but did not take advantage of that option, PBGC

approval is generally required to opt out starting with a year after 2014. PBGC will review such requests

based on the facts and circumstances and will grant such requests only for good cause in appropriate

circumstances. PBGC will not grant requests made solely to reduce premiums.

PBGC approval is not required for a plan that wants to opt out starting with the first plan year it would

otherwise be expected to use the Lookback Rule.  For example, approval will not be required in these

situations:

 A plan that was not small for 2014 that becomes small in the future (as the result of a drop in

Participant Count) that wants to opt out of using the Lookback Rule starting with the first plan year

the plan is considered a Small Plan.

 A new Small Plan created in or after 2014 wants to opt out of the Lookback Rule starting with its

second year.

In addition, with respect to a plan that is eligible for the Small‐employer Cap for 2014 and chooses to

pay the cap rather than calculating the Variable‐rate Premium based on UVBs and paying the lesser of

the two amounts, PBGC approval is not required if such plan wants to opt out of the Lookback Rule the

first year after 2014 it decides to do the full calculation and pay the lesser of the two amounts.

As is the case for a plan that opts out of the Lookback Rule starting with 2014, a decision to opt out of

the Lookback Rule starting with a year after 2014 remains in place for all subsequent years unless and

until PBGC grants permission to start using the Lookback Rule in the future. Guidance with respect

opting out of the Lookback Rule for a year after 2014, including how to request approval, will be

provided in time for 2015 premium filings.

Measurement date

Unfunded Vested Benefits are measured on the funding valuation date (i.e., the measurement date for

determining the minimum required contribution) for the applicable plan year (i.e. either the Premium

Payment Year or the Lookback Year, depending on whether the Lookback Rule applies). Regardless of

whether the Lookback Rule applies, this date is called the UVB Valuation Date to distinguish it from the

Participant Count Date (see “How to Count Participants” section). So, for plans using the Lookback Rule,

the UVB Valuation Date is the valuation date used to determine the minimum required contribution (i.e.,

“the funding valuation date”) for the Lookback Year. For all other plans, the UVB Valuation Date is the

funding valuation date for the Premium Payment Year.

8 See (line (7)(c)(3) of the illustrative form in the “Data to be submitted” section.

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How to Determine Unfunded Vested Benefits

Examples

The following examples illustrate these rules:

Example 1 – Plan A, a calendar year plan, is not a Small Plan and therefore, in accordance with ERISA 303

must have a beginning of year valuation date. Plan A’s Variable‐Rate Premium for 2014 is based on

UVBs for 2014 (i.e., the Premium Payment Year) measured as of 1/1/2014. This result is not dependent

on whether the plan is a Continuation Plan.

Example 2 – Plan B is a pre‐existing Small Plan and is therefore is subject to the Lookback Rule. Plan B

has a calendar year plan year and a beginning of year valuation date. If Plan B does not opt out of the

Lookback Rule, its Variable‐rate Premium for 2014 is based on UVBs for the plan year beginning in 2013

(i.e., the “Lookback Year” measured as of 1/1/2013). If Plan B opts out of the Lookback Rule, its

Variable‐rate Premium for 2014 is based on UVBs for the plan year beginning in 2014 measured as of

1/1/2014.

Example 3 – Plan C is a pre‐existing Small Plan and is therefore subject to the Lookback Rule. Plan C has

a calendar year plan year and a year‐end valuation date. Assuming Plan C does not opt out of the

Lookback Rule, its Variable‐rate Premium for 2014 is based on UVBs for the plan year beginning in 2013

(i.e. the “Lookback Year”) measured as of 12/31/2013.

Note – in this case, it would not make sense for Plan C to opt out of the Lookback Rule. Doing so would

mean its Variable‐rate Premium for 2014 and all future years would be based on UVBs as of the end of

the Premium Payment Year. For years after 2014, that measurement date would be 21⁄2 months after the

due date.

Example 4 – Plan D is a New Small Plan with a calendar year plan year and a year‐end valuation date.

Plan D was created as the result of a non de minimis spin‐off on January 1, 2014 and is therefore

considered a Continuation Plan for 2014. Even though Plan D is a Small Plan for 2014, it is not subject to

the Lookback Rule for 2014 because it is a Continuation Plan. Therefore, Plan D’s Variable‐rate Premium

for 2014 will be based on UVBs for 2014 (i.e., the Premium Payment Year) measured as of 12/31/20149

.

Note that Plan D’s 2014 premium is not due until 3/30/2015 (90 days after the 12/31/2014 UVB

valuation date).

Premium Funding Target

The Premium Funding Target is the liability measure underlying the UVB calculation. It is determined the

same way the funding target is determined under ERISA section 303 (minimum funding requirements)

except that only vested benefits are included, and a special premium discount rate structure is used.

With the exception of the discount rate, all other assumptions must be identical to those used to

determine the minimum required contribution under ERISA section 303.

In lieu of using the special premium discount rates, you may make an election (irrevocable for five

years) to use smoothed discount rates, similar to, and in some cases identical to, the rates used to

determine the minimum required contribution. Different terminology is used to describe the Premium

Funding Target depending on whether this election is in effect.

9 Assuming the participant count remains below 100, Plan D will be subject to the Lookback Rule for 2015. That means that

Plan D’s Variable‐rate Premium for 2015 will also be based on UVBs for 2014 measured as of 12/31/2014.

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How to Determine Unfunded Vested Benefits

 Standard Premium Funding Target – This term describes the Premium Funding Target that applies

unless the above‐noted election is in effect. The discount rates used to determine the Standard

Premium Funding Target are the ERISA section 4006(a)(3)(E)(iv)) segment rates for:

- In the case of a Small Plan using the Lookback Rule, the month before the month in which the

Lookback Year begins.

- In the case of any other plan, the month before the month in which the Premium Payment Year

begins.

The ERISA section 4006(a)(3)(E)(iv) segment rates are based on the same bond yields as used to

determine the segment rates for the ERISA section 303 funding target. However, unlike ERISA 303

segment rates which are averaged over 24 months, the segment rates used to determine the

Standard Premium Funding Target are not averaged. These “spot” segment rates are published by

IRS each month and are also posted on the “Interest Rates and Factors” section of the Practitioners

Page at www.pbgc.gov.

 Alternative Premium Funding Target – This term describes the Premium Funding Target if the

election described above is in effect. The Alternative Premium Funding Target is determined using

the discount rates that would have been used to determine the ERISA section 303 funding target10

for the Premium Payment Year (or, for a plan using the Lookback Rule, the Lookback Year) if not for

the MAP‐21 Stabilization Rules. Thus, if an election is made under:

- ERISA section 303(h)(2)(D)(ii) to use the full yield curve instead of the three segment rates for

purposes of determining the minimum required contribution, that same yield curve is used to

determine the Alternative Premium Funding Target; or

- ERISA section 303(h)(2)(E) to use one of the four months preceding the valuation date as the

“applicable month,” instead of the month containing the valuation date, for determining which

month’s rates to use, that same month’s rates, determined without regard to the MAP‐21

Stabilization Rules, are used to determine the Alternative Premium Funding Target.

An election to use the Alternative Premium Funding Target cannot be revoked for five calendar years.

Until an election is officially revoked, it remains in place. The following example illustrates the rules on

making and revoking an election to use the Alternative Premium Funding Target.

Example – Plan A first makes an election to use the Alternative Premium Funding Target for a plan year

that begins on April 1, 2014. In this case, the Alternative Premium Funding Target must be used to

determine unfunded vested benefits for all plan years beginning before April 1, 2019. The plan may

revoke the election first effective for any plan year beginning on or after April 1, 2019, but unless the

election is revoked, it will remain in place.

This is the case even if the plan year subsequently changes. For example, if the plan year is changed to

the calendar year first effective January 1, 2019, the Alternative Premium Funding Target must be used

for the short plan year April 1, 2018 – December 31, 2018 and for the January 1, 2019 – December 31,

2019 plan year. The first plan year for which the Plan Administrator may revoke the election is the

2020 plan year.

10 Note that this will not be the case if the plan is not yet subject to PPA for funding purposes, or if an election is made under

PPA 2006 section 402, to use an 8.25% discount rate to determine the funding target for funding purposes. See “Plans Subject

to Special Funding Rules” later in this section. 

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How to Determine Unfunded Vested Benefits

The election (or revocation) must be made by the date the Variable‐rate Premium is due. An election

to use (or revoke) the Alternative Premium Funding Target is made as part of the comprehensive

premium filing. If an election (or revocation) is not made as part of the comprehensive filing, it may be

made as part of an amended filing only if the amended filing was made on or before the due date.

Vested Benefits

Only vested benefits are taken into account when determining the Premium Funding Target. For this

purpose, a benefit does not fail to be considered vested solely because it is not protected under Code

section 411(d)(6) and thus may be eliminated or reduced by the adoption of a plan amendment or by

the occurrence of a condition or event. Such a benefit is vested for premium purposes (if the other

requirements for vesting have been met) so long as the benefit has not actually been eliminated or

reduced. In addition, certain benefits payable upon a participant’s death do not fail to be considered

vested solely because the participant is still living. The benefits to which this rule applies are a qualified

pre‐retirement survivor annuity (QPSA), a post‐retirement survivor annuity such as the annuity paid

after a participant’s death under a joint‐and‐survivor or certain‐and‐continuous option, and a benefit

that returns a participant’s accumulated mandatory employee contributions.

Also, a participant’s pre‐retirement lump‐sum death benefit (other than a benefit that returns

accumulated mandatory employee contributions or a QPSA paid as a lump sum) is not vested if the

participant is living. Similarly, a disability benefit is not vested if the participant is not disabled. The

following examples illustrate these concepts:

Example 1 – Under Plan A, if a participant retires at or after age 55 but before age 62, the participant

receives a temporary supplement from retirement until age 62. The supplement is not a qualified social

security supplement (QSUPP) as defined in Treasury Reg. §1.401(a)(4)‐12, and is not protected under

Code section 411(d)(6). The temporary supplement is considered vested, and its value is included in the

premium funding target, for each participant who, on the UVB Valuation Date, is at least 55 but less

than 62, and thus eligible for the supplement. The calculation is unaffected by the fact that the plan

could be amended to remove the supplement after the UVB Valuation Date.

Example 2 – Plan B provides a QPSA upon the death of a participant who has five years of service, at no

charge to the participant. The QPSA is considered vested, and its value is included in the premium

funding target, for each participant who, on the UVB Valuation Date, has five years of service and is thus

eligible for the QPSA. The calculation is unaffected by the fact that the participant is alive on that date.

Estimated Premium Funding Target

If the Premium Funding Target is not known by the due date, an estimated Variable‐rate Premium may

be paid on the due date. Doing so triggers the need to submit an amended filing at a later date to

reconcile the actual Variable‐rate Premium with the estimate. In the event the actual Variable‐rate

Premium is greater than the estimate, penalties for late payment will be waived if the estimate meets

certain criteria and the reconciliation filing is made by the end of the sixth calendar month that begins

on or after the premium filing due date (generally April 30th after year end for calendar year plans). For

additional information see “Automatic Penalty Waiver for Late Variable‐Rate Premiums” in the “Late

Payment Charges” and the “Correcting Filings, Reconciling Estimates, Refunding Overpayments” section.

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How to Determine Unfunded Vested Benefits

Fair Market Value of Plan Assets

The asset measure underlying the UVB calculation is determined the same way assets are determined

under ERISA section 303 except that any averaging method adopted for funding purposes is disregarded

for premium purposes. For premium purposes, the market value of assets is measured on the UVB

Valuation Date and adjusted to account for contribution receipts using the same methodology as is used

for funding purposes.

Adjustments for prior year contributions

If contributions for the plan year prior to the Premium Payment Year (or, in the case of a plan using the

Lookback Rule, the plan year preceding the Lookback Year), are made after the UVB Valuation Date, the

market value is increased to reflect the value of such contributions discounted to the UVB Valuation

Date. The discount rate for this purpose is the ERISA section 303(h)(2)(A) effective interest rate for the

plan year for which the contributions were made (as reported in item 5 of Schedule SB). For example,

consider a calendar year plan with a January 1, 2014 UVB valuation date.

Contributions made in 2014 for the 2013 plan year count in the January 1, 2014 asset value. Such

contributions are discounted from the date made to January 1, 2014 using the 2013 effective interest

rate. Prior year contributions are included only to the extent made by the date of a premium filing.

Adjustments for current year contributions

If contributions for the Premium Payment Year (or, in the case of a plan using the Lookback Rule, for the

Lookback Year), are made before the UVB Valuation Date, the market value is decreased to exclude the

adjusted value of these current year contributions. For this adjustment, current year contributions made

before the UVB Valuation Date are increased to the UVB Valuation Date using the ERISA section

303(h)(2)(A) effective interest rate for the plan year for which they were made.

Note – this can happen only if the UVB Valuation Date is after the beginning of the plan year.

Comparison to asset value reported on Schedule SB

In the case of:

 a Small Plan using the Lookback Rule, the asset value reported is generally the same as the market

value of assets required to be reported in the Schedule SB for the Lookback Year (item 2a).

 any other plan, the asset value reported here is generally the same as the market value of assets

required to be reported in the Schedule SB for the Premium Payment Year (item 2a).

The amounts would differ only if a premium filing is made before the premium due date and prior year

contributions are made after the premium filing is made (and thus not included in assets).

Summary

The following table summarizes the various dates and assumptions that are used to determine Variable‐

rate premiums for 2014. Although Participant Count Date is not used to determine the Variable‐rate

premium, it is included in the table so that all of the variables affecting premium calculations are

contained in one summary. Please review the column that relates to your plan. The terms “funding” or

“for funding purposes” in this table mean amounts determined under ERISA Section 303. Year

references (e.g., “2013” or “2014”) relate to the plan year beginning in such year.

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How to Determine Unfunded Vested Benefits

Summary11

If Lookback Rule Applies If Lookback Rule Does Not Apply

Standard Premium

Funding Target

Alternative Premium

Funding Target

Standard Premium

Funding Target

Alternative Premium

Funding Target

Participant Count Date Last day of 2013 plan year Last day of 2013 plan year Last day of 2013 plan year Last day of 2013 plan year

UVB Valuation Date Funding valuation date

for 2013

Funding valuation date

for 2013

Funding valuation date

for 2014

Funding valuation date

for 2014

Benefits reflected in

Premium Funding

Target

Vested portion of benefits

included in 2013 funding

target

Vested portion of benefits

included in 2013 funding

target

Vested portion of benefits

included in 2014 funding

target

Vested portion of benefits

included in 2014 funding

target

Assumptions used to

determine Premium

Funding Target

 Discount rates

 All other

assumptions

December 2012 spot

segment rates

Whatever was used

for funding purposes

for 2013

Whatever was used for

funding purposes for 2013

except that if

MAP‐21 corridor affected

rates, use rates before

reflecting MAP‐21 corridor12

Whatever was used

for funding purposes

for 2013

December 2013 spot

segment rates

Whatever is used

for funding purposes

for 2014

Whatever is used for

funding purposes for 2014

except that if

MAP‐21 corridor affected

rates, use rates before

reflecting MAP‐21

corridor12

Whatever is used

for funding purposes

for 2014

At‐risk status Whatever status was

in effect for funding

purposes for 2013

Whatever status was

in effect for funding

purposes for 2013

Whatever status is

in effect for funding

purposes for 2014

Whatever status is

in effect for funding

purposes for 2014

At‐risk load included in

Premium Funding

Target

 4% of liability

portion of load

 Per‐participant

portion of load

If the plan was at‐risk for

2013 for funding purposes,

4% of what

the Standard Premium

Funding Target would be

if the plan wasn’t at‐risk.

Otherwise, N/A.

The same amount

included in the liability

for funding purposes

for 2013

If the plan was at‐risk for

2013 for funding

purposes, 4% of what

the Alternative Premium

Funding Target would be

if the plan wasn’t at‐risk.

Otherwise, N/A.

The same amount

included in the liability

for funding purposes

for 2013

If the plan is at‐risk for

2014 for funding

purposes, 4% of what

the Standard Premium

Funding Target would be

if the plan wasn’t at‐risk.

Otherwise, N/A.

The same amount

included in the liability

for funding purposes

for 2014

If the plan is at‐risk for

2014 for funding

purposes, 4% of what

the Alternative Premium

Funding Target would be

if the plan wasn’t at‐risk.

Otherwise, N/A.

The same amount

included in the liability

for funding purposes

for 2014

11 Table entries assume plan is not a New or Newly Covered Small Plan. 12 This will not be the case if the plan is not subject to PPA for funding purposes or if the plan made an election under section 402 of

PPA under which the funding target is determined using an 8.25% discount rate. See “Plans Subject to Special Funding Rules” on

next page.

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How to Determine Unfunded Vested Benefits

Plans Subject to Special Funding Rules

Sections 104 and 105 of PPA 2006 delay the effective date of the PPA funding rules for certain plans of

cooperatives, charity plans, and plans affected by settlement agreements with PBGC. Section 402 of PPA

2006 applies special funding rules to certain plans of commercial passenger airlines and airline caterers.

None of these provisions affects how UVBs are determined. Plans in this small group must determine

UVBs in the same manner (and using the same discount rate basis) as all other plans. In particular, under

Section 402 of PPA 2006, certain plans may elect to use an 8.25% discount rate for funding purposes and

other plans may elect to use an 8.85% discount rate. These rates may not be used to determine UVBs,

even if the Alternative Premium Funding Target is elected.

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Data to be Submitted

Form is for Illustrative Purpose Only

Amended filing 2014 PBGC Comprehensive Premium Filing Disaster Relief (enter code) _ _ ‐ _ _

Part I – General Plan Information

1 Plan sponsor information

a Name ___________________________________________________________________________________________________

b Six‐digit business code _ _ _ _ _ _ _ c First six digits of CUSIP number _ _ _ _ _ _

2 Plan administrator information

a Name ___________________________________________________________________________________________________________

b Address line 1 _____________________________________________________________________________________________________

c Address line 2 _____________________________________________________________________________________________________

d City _________________________ e State ______ f Zip _______________ g Country (if not U.S.) _____________

h Contact person

(1) Name (for “attention” line of mailings) ______________________________________________________________

(2) e‐mail address ___________________________________________________ (3) Phone number: _ _ _ ‐_ _ _ ‐ _ _ _ _ ext _ _ _ _ _

3 Additional plan contact (optional)

(1) Name ___________________________________________________________________________________

(2) e‐mail address ___________________________________________________ (3) Phone number: _ _ _ ‐_ _ _ ‐ _ _ _ _ ext _ _ _ _ _

4 Plan information

a Plan name _________________________________________________________________________________________

b Premium payment year information:

(1) This filing is for the premium payment year commencing _ _ /_ _ / _ _ _ _ and ending _ _ /_ _ / _ _ _ _.

(2) For the premium payment year, is the plan a “small plan” (see definitions section of instructions)? Yes No

(3) If the plan year commencement date has changed since the most recent PBGC filing as a result of a plan amendment changing the plan year, enter the date

the plan year change was adopted _ _/_ _/_ _ _ _ .

(4) Check box if plan qualifies to pay a prorated premium for this premium payment year (i.e., if plan has less than a full year of coverage).

c Employer Identification Number and Plan Number information:

(1) EIN and PN: EIN _ _ _ _ _ _ _ _ _ PN _ _ _

(2) If the EIN and PN are not both the same as on the most recent premium filing, enter EIN and PN from most recent premium filing:

EIN _ _ _ _ _ _ _ _ _ PN _ _ _. Otherwise, skip to item 4c(3).

(3) If the EIN and PN are not both the same as on the 2013 Form 5500, enter EIN and PN from 2013 Form 5500 and provide explanation: Otherwise, skip to

item 4d. EIN _ _ _ _ _ _ _ _ _ PN _ _ _. Explanation _____________________________________________________________________________________

d Plan effective date _ _ /_ _ / _ _ _ _

e Plan type: Multiemployer Single‐employer (including multiple‐employer plans)

f Check box if plan is a new or newly covered plan and provide the following information:

(1) Adoption date _ _ /_ _ / _ _ _ _ (2) Date coverage began on _ _ /_ _ / _ _ _ _.

(3) Is the plan a “continuation plan” (see definitions section of instructions)? Yes No

Part II – Flat‐Rate Premium Information

5 Flat‐rate premium

a Participant count date: Month ___ Day ___ Year ____

b Flat‐rate premium calculation

(1) Applicable rate (Single‐employer plans enter $49; Multiemployer plans, enter $12)

(2) Participant count as of participant count date

Active: ___________ Terminated vested _____________ Retirees and beneficiaries: _______________

(3) Flat‐rate premium (item 5b(1) x item 5b(2))

Total:

______________

______________

______________

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Data to be Submitted

Part III – Variable‐rate Premium Information

Multiemployer plans — Skip to Part IV

Complete item 6 only if the plan is electing, or revoking an election, to use the Alternative Premium Funding Target instead of the Standard Premium Funding Target;

otherwise skip to item 7.

6 Alternative Premium Funding Target Election or Revocation

a Election ‐ Check box to elect to use the Alternative Premium Funding Target instead of the Standard Premium Funding Target. The election will be effective —

and the plan will be required to use the Alternative Premium Funding Target — beginning with this premium payment year and for all subsequent plan years

unless and until the election is subsequently revoked.

b Revocation ‐ Check box to revoke a prior election to use the Alternative Premium Funding Target. The revocation will be effective — and the plan will be

required to use the Standard Premium Funding Target — beginning with this premium payment year and for all subsequent plan years unless and until a new

election is subsequently made.

Note — Elections or Revocations must remain in place for at least five years.

7 Variable‐rate premium (VRP)

a VRP exemptions – If an exemption applies, check applicable box and skip to item 8.

New or newly covered small plan other than a continuation plan No vested participants

Standard termination with a final distribution during the premium payment year 412(e)(3) plan

Standard termination with a proposed termination date in a prior year (proposed termination date: _ _ /_ _ /_ _ _ _)

b VRP small employer cap qualification – Check box if this plan qualifies for the small employer cap applicable to certain plans of small employers (those with

25 or fewer employees). If box is checked, items 7c through 7g may, but need not, be omitted.

c Assumptions and methods used to determine premium funding target

(1) Premium funding target method: Standard Alternative

(2) Discount rate(s): 1

st segment ____% 2nd segment ____% 3rd segment ____% N/A, full yield curve used

(3) UVB valuation date: Month ___ Day ___ Year ____

d Premium funding target as of UVB valuation date – Check box if the reported premium funding target information is an estimate.

(1) Attributable to active participants _____________

(2) Attributable to terminated vested participants _____________

(3) Attributable to retirees and beneficiaries receiving payment _____________

(4) Total premium funding target (item 7d(1) + item 7d(2) + item 7d(3)) _____________

e Market value of assets as of UVB valuation date _____________

f Unfunded vested benefits (excess, if any, of item 7d(4) over item 7e, rounded up to the next $1,000) _____________

g Uncapped variable‐rate premium (item 7f x 0.014) _____________

h Maximum VRP

(1) MAP‐21 cap ($412 x item 5b(2)) _____________

(2) Small employer cap, if applicable ($5 x item 5b(2) x item 5b(2)) – Omit this item if plan is not eligible for this cap _____________

(3) Maximum variable‐rate premium — If the plan qualifies for the small employer cap, the lesser of item 7h(1) and 7h(2). Otherwise,

item 7h(1). _____________

i Variable‐rate premium — If the plan qualifies for the small employer cap and item 7g was omitted, item 7h(3). Otherwise, the lesser

of item 7g and item 7h(3). _____________

Part IV – Total Premium Information

8 Premium proration (If the plan does not qualify for premium proration, skip to item 9)

a Number of months (complete and partial) in the short plan year ______________

b Total premium before reflecting proration (item 5b(3) + item 7i, if applicable) ______________

9 Total premium — If the plan does not qualify for premium proration, item 5b(3) + item 7i, if applicable. If the plan qualifies for premium

proration, item 8b x item 8a ÷ 12. ______________

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Part V – Payment Information

10 Premium credit

a Payments made previously for this premium payment year ______________

b Outstanding credit from the plan year immediately preceding the premium payment year ______________

c Total (item 10a + item 10b) ______________

11 Amount due (excess, if any, of item 9 over item 10c) ______________

12 Treatment of overpayment

a Excess, if any, of item 10c over item 9 ______________

b Treatment of balance (select one): Credit towards next year’s premium Refund by check

Refund by electronic funds transfer (EFT). If you select this option, complete item 12c.

c Information for EFT refund: Type of account Checking Savings Bank routing number _______________________

Account number ___________________ Sub‐account number (if any) _________________

Part VI – Miscellaneous Information

13 Final filing – If this is the last filing for this plan, enter the date of event _ _ /_ _ / _ _ _ _ and check box that best describes why filing obligation is ceasing:

Merger/Consolidation Trusteeship Distribution pursuant to termination Cessation of covered status

14 Transfers from other plans – If another plan transferred assets or liabilities to this plan since the most recent comprehensive premium filing, provide the following

information with respect to each plan from which assets or liabilities were transferred (if transfer involved a new or newly covered plan, see instructions).

EIN _ _ _ _ _ _ _ _ _ PN _ _ _ Date of transfer _ _ /_ _ / _ _ _ _ Type of transfer: Merger Consolidation Spinoff Other

EIN _ _ _ _ _ _ _ _ _ PN _ _ _ Date of transfer _ _ /_ _ / _ _ _ _ Type of transfer: Merger Consolidation Spinoff Other

15 Transfers to other plans – If this plan transferred assets or liabilities to another plan since the most recent comprehensive premium filing, provide the following

information with respect to each plan to which the assets or liabilities were transferred (if transfer involved a new or newly covered plan, see instructions).

EIN _ _ _ _ _ _ _ _ _ PN _ _ _ Date of transfer _ _ /_ _ / _ _ _ _ Type of transfer: Merger Consolidation Spinoff Other

EIN _ _ _ _ _ _ _ _ _ PN _ _ _ Date of transfer _ _ /_ _ / _ _ _ _ Type of transfer: Merger Consolidation Spinoff Other

16 Participation freeze – If, as of the beginning of the premium payment year, this plan is closed to new entrants, enter the date the plan became closed to new

entrants _ _/_ _/_ _ _ _ .

17 Accrual freeze – If, as of the beginning of the premium payment year, benefit accruals under this plan are partially or totally frozen, enter the date the freeze

became effective_ _/_ _/_ _ _ _ and check box that best describes the nature of the freeze:

For all participants, both pay and service are frozen For all participants, service is frozen, pay is not

For some participants, both pay and service are frozen For some participants, service is frozen, pay is not

Other (enter explanation)________________________________________________________________________________

18 Amended filing – Complete this item only if this is an amended filing

a If either the first or last day of the premium payment year reported in this amended filing (item 4b(1)) differs from what was reported in the filing that is being

amended, provide the dates that were reported in the original filing:

Date premium payment year commenced _ _ /_ _ /_ _ _ _ Date premium payment year ended _ _ /_ _ /_ _ _ _.

b If the EIN and PN reported in this amended filing (item 4c(1)) are not both the same as what was reported in the filing that is being amended, enter the EIN and

PN from the original filing: EIN _ _ _ _ _ _ _ _ _ PN _ _ _.

c If the reason for amending the filing is other than reconciling an estimated Variable‐rate Premium and the total premium reported in this amended filing

(item 9) is less than the amount reported in the filing that is being amended, provide an explanation of why an amended filing is necessary:

_____________________________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________

Data to be Submitted

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Part VII – Certifications

19 Certification of Plan Administrator – The plan administrator must sign and complete this item.

I certify under penalty of perjury, to the best of my knowledge and belief, that all the information in the filing is true, correct and complete and has been

determined in accordance with PBGC's premium regulations and instructions, except that if the filing reports an estimated premium funding target, the estimate is

reasonable, takes into account the most current information available to the enrolled actuary, and has been determined in accordance with generally accepted

actuarial principles and practices, and that if I received variable‐rate premium information certified by an enrolled actuary for this filing, the variable‐rate premium

information in the filing is the same as the variable‐rate premium information certified by the enrolled actuary.

Name of person signing: First name _______________ Last name _____________________________

____________________________________________ _ _ _ ‐_ _ _ ‐ _ _ _ _ ext _ _ _ _ _ _

E‐mail address Telephone

___________________________________________ _ _ /_ _ /_ _ _ _

Signature Date

20 Certification of Enrolled Actuary – An enrolled actuary must sign and complete this item unless the plan is (1) a multiemployer plan, (2) exempt from the variable‐

rate premium, or (3) eligible for the small employer cap, paying the maximum VRP and not reporting the uncapped VRP.

I certify under penalty of perjury, to the best of my knowledge and belief, that the variable‐rate premium information in the filing is true, correct and complete and

has been determined in accordance with PBGC's premium regulations and instructions; except that if the premium funding target is estimated, the estimate is

reasonable, takes into account the most current information available to me and has been determined in accordance with generally accepted actuarial principles

and practices.

Name of person signing: First name _______________ Last name _____________________________

_____________________________________________ _ _ _ ‐_ _ _ ‐ _ _ _ _ ext _ _ _ _ _ _

Firm Telephone

_____________________________________________ ___________

E‐mail address Enrollment number

____________________________________________ _ _ /_ _ /_ _ _ _

Signature Date

Data to be Submitted

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Description of Data Elements

Overview

This section provides a description of each required data element presented in the same order as the “form”

used to illustrate the data elements (see “Data to be Submitted” section). Item numbers are presented solely to

facilitate understanding. The My PAA screens do not include item numbers. If you are using private‐sector

software, item numbers may or may not be included. We recommend you review these instructions with a copy

of the “form” in front of you.

Note for plans with more than one plan year beginning in 2013 or 2014:

References in these instructions to the 2013 plan year (and to filings for the 2013 plan year) should be

considered to refer to your plan’s most recent complete plan year. For example, a plan that changes its plan

year could have two plan years beginning in calendar 2014. When such a plan makes its premium filing(s) for its

second 2014 plan year, the references in these instructions to the 2013 plan year (and to filings for the 2013

plan year) should be considered to refer to the plan’s first 2014 plan year (and to filings for that plan year),

because that is the plan’s most recent complete plan year. Similarly, if your plan had two plan years beginning in

calendar 2013, the references in these instructions to the 2013 plan year (and to filings for the 2013 plan year)

should be considered to refer to the plan’s second 2013 plan year, which is the plan’s most recent complete plan

year.

Note about reporting dollar amounts

With the exception of total premium, premium credits, the amount due PBGC, and the amount of any

overpayment, money amounts reported should be in dollars only (no cents).

Amended Filing

Check this box only if this filing is an amendment to a previously submitted filing for the 2014 plan year.

Note that a Variable‐rate Premium reconciliation filing (in which you provide final Premium Funding Target

information after having reported an estimated Premium Funding Target) is considered an amended filing. If you

amend a comprehensive filing for a reason other than reconciling an estimated Variable‐rate Premium and the

amended filing shows a lower premium than the amount that was reported in the filing that is being amended,

you must provide an explanation of the specific circumstances or events that caused the reduction. See the

“Correcting Filings, Reconciling Estimates, Refunding Overpayments” section for more information.

Note – If you are amending a filing for a plan year that did not begin in 2014, the rules in this document do not

apply.

Disaster Relief

From time to time, when major disasters occur, PBGC grants disaster relief by waiving late filing and payment

penalties for certain plans. Disaster Relief Announcements are available through the Resources Page at

www.pbgc.gov. If your plan is covered by a PBGC Disaster Relief Announcement for this premium filing, report

the four‐digit code provided in the applicable Disaster Relief Announcement.

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Description of Data Elements

Instructions for Part I – General Plan Information

1 Plan sponsor information

a Report the name of the Plan Sponsor.

b Business Code – Report the six‐digit code that best describes the nature of the employer’s business. If more

than one employer is involved, report the business code for the predominant business activity of all

employers. A list of business codes can be found in the instructions to Form 5500 and in the “Premium

Filings” section of the Practitioners Page at www.pbgc.gov. Because codes for the Premium Payment Year

may not be available at the time you submit this filing, you may report the relevant code for either the

Premium Payment Year or the prior year.

c CUSIP number – If a CUSIP number has been assigned to publicly traded securities of the Plan Sponsor or
 

any member of the Plan Sponsor’s controlled group, report the first six digits of the CUSIP number.
 

Otherwise, leave this item blank.
 

A CUSIP number is a nine‐digit number assigned to the publicly traded securities of a Plan Sponsor (or

member of the Plan Sponsor’s controlled group) under the securities numbering system of the Committee

on Uniform Securities Identification Procedures. The first six digits of the CUSIP number identify the

securities issuer, the next two digits identify the specific securities issue, and the last digit is a check digit.

2 Plan administrator information

a‐g Report the name and address of the Plan Administrator. Note that this is the address where we send
 

official correspondence to the plan (e.g., an invoice for late payment charges).
 

h	 Report the name, e‐mail address, and phone number of the person we should contact if we have any

questions concerning this filing. We will send official correspondence to the “attention of” this person at

the address reported in (a)‐(g).

To keep our records current and enable us to send correspondence to the correct address, you should inform us

of address changes as soon as they occur. You may do so by contacting us either in writing or by e‐mail. See

Appendix 2 for contact information.

3 Additional plan contact (optional)

Report the name of an additional contact person and his or her e‐mail address and phone number.

4 Plan information

a Plan name – Report the complete name of the plan as stated in the plan document. For example, “The ABC

Company Pension Plan for Salaried Personnel.”

b Premium Payment Year information

(1) Report the date the Premium Payment Year commences and the date it ends. If you are filing for the first

year of a New Plan, the Premium Payment Year commencement date (“PYC”) should be the plan

effective date.

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Description of Data Elements

(2) Check the appropriate box to indicate whether the plan is a Small Plan for the Premium Payment Year

(See definition of Small Plan in Appendix 1).

(3) If the plan year commencement date has changed since the most recent PBGC filing as a result of a plan

amendment changing the plan year, enter the adoption date of the plan year change.  

(4) Check the box if plan qualifies to pay a prorated premium for this Premium Payment Year. A plan
 

qualifies to pay a prorated premium only if the Premium Payment Year is:  
 

 a short first year of a New or Newly Covered Plan;

 a short year created by an amendment that changes the plan year (but note that an amendment is

not considered to change the plan year if the plan merges into or consolidates with another plan or

otherwise ceases its independent existence either during the short plan year or at the beginning of

the full plan year following the short plan year);

 a short year created by distribution of plan assets pursuant to plan termination; or

 a short year created by the appointment of a trustee for a Single‐employer Plan under ERISA section

4042.

There is no premium proration where a plan ceases to be a covered plan before the end of the plan year.

Note that the short year need not have ended by the time you pay a prorated premium, but if the plan

year turns out to be longer than you anticipated, you will have to make up any premium underpayment,

which will be subject to interest and penalties.

Note also that premium proration is not available for “overlapping” premium payments resulting from a

plan Merger, Consolidation, or Spinoff.

c Employer Identification Number (EIN) and Plan Number (PN) information

(1)	 Report the nine‐digit EIN of the Plan Sponsor and the three‐digit PN of the plan.

(2) If the EIN and PN for this filing do not both match exactly the EIN and PN reported in the most recent

premium filing, report both the EIN and PN that were reported in the most recent premium filing. If this

is the first premium filing for this plan, leave this item blank.  

Please note the following exceptions that apply only if this is an amended filing:

 If item 4c(2) was reported incorrectly in the original filing (i.e., the filing that is being amended),

provide the correct information in the amended filing.

 If item 4c(2) was reported correctly in the original filing, provide the same information in the

amended filing.

(3) If the EIN and PN for this filing do not both match exactly the EIN and PN reported in the 2013 Form

5500, report both the EIN and PN that were reported in the 2013 Form 5500, and attach an explanation.

If a 2013 Form 5500 was not required, leave this item blank.  

d Plan effective date – Report the date the plan became effective

e Plan type – Indicate whether the plan is a Multiemployer Plan or a Single‐employer Plan.

f	 Information for New or Newly Covered Plans – If this is a New or Newly Covered Plan, check the box and
 

complete the rest of item 4f.
 

(1)	 Adoption date – Enter the date the plan was adopted

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Description of Data Elements

(2)	 Coverage date – Enter the date the plan became covered under Title IV. If the plan has had one or more

periods of coverage, report the earliest date in the Premium Payment Year when the plan was covered

under Title IV — not the date when the plan became covered in a prior year. If another plan transferred

assets or liabilities to this New or Newly Covered Plan, be sure to complete the “Transfers from other

plans” item (see item 14).

(3)	 Continuation Plan – Check the box to indicate whether this New or Newly Covered Plan meets the

definition of a Continuation Plan (see definition).

Instructions for Part II – Premium Information

5 Flat‐rate Premium

a Report the Participant Count Date. See “How to Count Participants” section for special rules relating to New

Plans, Newly Covered Plans, Mergers and Spinoffs.

b Flat‐rate Premium calculation

(1) Applicable rate – Enter the per‐participant flat premium rate. For 2014, the rate is $49 for Single‐

employer Plans and $12 for Multiemployer Plans.
 

(2) Participant count – Report the number of participants covered by the plan on the Participant Count Date

separately for active participants, terminated vested participants, retirees and beneficiaries receiving

payment, and in total. See “How to Count Participants” section.

(3) Flat‐rate Premium – Report the product of the Participant Count and the applicable premium rate. If the

plan year is a short plan year, the required Flat‐rate Premium may be a prorated portion of this amount;

however, the amount reported in this item must reflect a full year’s premium.

Note that you must make a premium filing even if the Flat‐rate Premium is $0. This may happen, for example, if

your plan is a New Plan that grants no past service credits, so that there are no Benefit Liabilities on the

Participant Count Date. A plan with no Benefit Liabilities has no participants for premium purposes.

Instructions for Part III – Alternative Premium Funding Target Election/Revocation

This Part applies only to Single‐employer Plans. Multiemployer Plans should skip to Part IV.

To be valid, an election must be made in accordance with these instructions and must be filed with PBGC on or

before the deadline.

6 Alternative Premium Funding Target Election / Revocation

a Election ‐ Check this box to make an election to use the Alternative Premium Funding Target first effective

for this Premium Payment Year.

b Revocation ‐ Check this box to revoke a prior election to use the Alternative Premium Funding Target that

was in effect for the plan year immediately preceding the Premium Payment Year.

You may elect to use the Alternative Premium Funding Target to determine unfunded vested benefits instead of

the Standard Premium Funding Target. Once an election is made, it remains in effect for all subsequent plan

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Description of Data Elements

years unless and until it is subsequently revoked.  You may revoke a prior election only if the Premium Payment

Year begins at least five years after the beginning of the plan year for which the election was first applicable.  For

example, if your plan is a calendar‐year plan and you first elected to use the Alternative Premium Funding

Target:

 for 2008 or 2009, you may revoke the election first effective for this 2014 filing.  If you revoke the election

for 2014, you cannot make another election to use the Alternative Premium Funding Target until 2019.

 for a plan year beginning 2010 ‐ 2013, the election is still in effect; you must use it for 2014.

 for this plan year, 2014, you must also use it for 2015 ‐ 2018. You may first revoke the election for 2019.

Similarly, if you revoke an election, you may not make a new election to use the Alternative Premium Funding

Target until five years have passed.

If you are not sure if an election is in effect or when an election first took effect, you find it by viewing your

account history in My PAA.
    

See “How to Determine Unfunded Vested Benefits” section for more information on elections and revocations.
 

7 Variable‐rate Premium  

This item relates to Variable‐rate Premium information and applies only to Single‐employer Plans.  

In general, the Variable‐rate Premium is $14 per $1,000, or fraction thereof, of unfunded vested benefits as of

the UVB Valuation Date, but no more than $412 times the number of participants (i.e., the MAP‐21 Cap). For

certain plans of small employers, the Variable‐rate Premium may be capped at an amount lower than the

MAP‐21 CAP (see item 7b).  

Some Single‐employer Plans are exempt from the Variable‐rate Premium; others may have a Variable‐rate

Premium of $0. In either case, this section must be completed in accordance with the following instructions.

a Exemptions – A Single‐employer Plan may claim an exemption from the Variable‐rate Premium if it meets

the requirements for any of the exemptions described below:  

 New or Newly Covered Small Plans other than Continuation Plans – Your plan qualifies for this

exemption if it is a New or Newly Covered Plan and a Small Plan, but not a Continuation Plan.  See

Definitions section for more information about these terms.

 Standard termination — closing out in current year – Your plan qualifies for this exemption if it makes a

final distribution of assets in a standard termination during the Premium Payment Year.

You may claim this exception in anticipation of a full distribution by plan year‐end even if that hasn’t

happened by the time you submit the filing.  However, if you fail to complete the final distribution by

the end of the year, the exemption will not apply. In that case, you will need to amend the filing

accordingly and late payment charges will be assessed on any Variable‐rate Premium owed and paid

after the applicable due date.

 Standard termination — proposed termination date in a prior year — Your plan qualifies for this

exemption if notices of intent to terminate in a standard termination were issued in accordance with

ERISA section 4041(a)(2), setting forth a proposed termination date before the beginning of the

Premium Payment Year.

To qualify for this exemption, it is not necessary that the plan make a final distribution of assets during

the Premium Payment Year.  However, this exemption is conditioned on the plan’s ultimately making a

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Description of Data Elements

final distribution of assets in full satisfaction of its obligations under the standard termination.  If that

doesn’t happen, the premium that would otherwise have been required will be due retroactive to the

applicable due date.    

 Plans with no vested participants – Your plan qualifies for this exemption if the plan has no participants

with vested benefits as of the UVB Valuation Date.

 Section 412(e)(3) plans (formerly called 412(i) plans) – Your plan qualifies for this exemption if the plan

is described in section 412(e)(3) of the Code and regulations thereunder on the UVB Valuation Date.

If an exemption applies, check the applicable box to indicate which exemption applies and skip to item 8. If

more than one exemption applies, check all applicable boxes.  

b Small‐Employer Cap qualification – If the plan qualifies as a small‐employer plan, the Variable‐rate Premium

may be capped at an amount lower than the MAP‐21 Cap.

Determining whether a plan qualifies for the Small‐Employer Cap – For this purpose:

 a plan is a small‐employer plan if the aggregate number of employees of all contributing sponsors of the

plan and all members of the contributing sponsors’ controlled groups, as of the first day of the Premium

Payment Year, is 25 or fewer,

 the aggregate number of employees is determined in the same manner as under section 410(b)(1) of the

Code, taking into account the provisions of section 414(m) and (n) of the Code, but without regard to

section 410(b)(3), (4), and (5) of the Code, and

 employees are counted as of the first day of the Premium Payment Year, not as of the Participant Count

Date or the UVB Valuation Date.

Note that a plan with 25 or fewer participants does not necessarily qualify for the Small‐Employer Cap

because the eligibility criterion is based on employees, not the Participant Count. For example, if a plan has

15 participants, but there are more than 25 employees (taking into account all employees of all contributing

sponsors of the plan and all members of their controlled groups), the plan does not qualify for the cap.

Also note that a plan with more than 25 participants might qualify for the cap. For example, consider a

contributing sponsor with 20 employees, all of whom are participants in a plan. If the plan also covers 15

former employees who are either terminated vested or retired, there are 35 participants in total. This plan

would qualify for the cap (assuming there are no other contributing sponsors and no controlled group

members).

Reporting requirements – If your plan qualifies for this cap, check the box to report that fact.  

If your plan qualifies for this cap, instead of calculating and reporting both the uncapped Variable‐rate

Premium and the maximum Variable‐rate Premium and then paying the lesser of the two amounts, you may

report and pay only the maximum Variable‐rate Premium.

If you choose to not report the uncapped Variable‐rate Premium, omit all items 7c through 7g and go

directly to item 7h. Note that if you choose to pay the maximum Variable‐rate Premium without

determining whether it is less than the uncapped Variable‐rate Premium, you may pay a larger Variable‐rate

Premium than required.

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Description of Data Elements

c Assumptions and methods used to determine Premium Funding Target

(1)	 Premium Funding Target method – Report whether you are using the Standard Premium Funding Target

or the Alternative Premium Funding Target to determine unfunded vested benefits by checking the

applicable box (i.e., “Standard” or “Alternative”).  Note that:

 The standard method must be used unless an election to use the alternative method is in effect.

 If an election to use the alternative method is in effect, you must use the alternative method.  This is

the case only if a valid election:

–	 is made as part of a timely filing for the Premium Payment Year by checking the election box in

item 6 of Part III,  or

–	 that was made in a prior year has not yet been revoked.

 Filers are encouraged to review prior filings or to review the Account History on My PAA to confirm

whether an election to use the alternative method is in effect.

 Checking the alternative box in item 7(c)(1) does not constitute an election. See item 6 instructions.

For additional information on Premium Funding Target methods, see “How to Determine Unfunded

Vested Benefits” section.

(2)	 Discount rates – Report the discount rates used to determine the Premium Funding Target.  For
 

information on which rates to use, see “How to Determine Unfunded Vested Benefits” section.
 

(3)	 UVB Valuation Date – Report the UVB Valuation Date for the Premium Payment Year.  In the case of a

Small Plan using the Lookback Rule, this date must be the valuation date for the Lookback Year. For any

other plan this date must be the valuation date for the Premium Payment Year.   Note for Small Plans ‐

For information about whether you should be using the Lookback Rule, see “How to Determine

Unfunded Vested Benefits” section.

d Premium Funding Target as of UVB Valuation Date

Report the Premium Funding Target (dollars only) calculated as described in the Premium Funding Target

part of the “How to Determine Unfunded Vested Benefits” section.  Report the amount separately for (1)

active participants, (2) terminated vested participants, (3) retirees and beneficiaries receiving payment, and

(4) the total premium funding target ((1)+(2)+(3)).  

Estimated Premium Funding Targets – If the Premium Funding Target (and thus, the Variable‐rate Premium)

being reported in this filing is an estimate, check the box to report that fact. If you file on an estimated basis,

you must ultimately make a reconciliation filing using the actual Premium Funding Target (by amending this

filing). In the reconciliation filing, in addition to reporting the actual Premium Funding Target data, be sure

to indicate that the reported amount is no longer an estimate by making sure the “estimate” box is no

longer checked. See “Correcting Errors, Credit Balances, Reconciling Estimates” section for more information.

See also the “Late Payment Charges” section for information on the automatic late payment penalty relief

that may be available to plans paying estimated Variable‐rate Premiums by the due date and later

reconciling.  

e Market value of assets – Report the fair market value of plan assets (dollars only) as of the UVB Valuation
 

Date adjusted to reflect contribution receipts as described in the “How to Determine Unfunded Vested
 

Benefits” section.
 

f	 Unfunded vested benefits – Report the excess (rounded up to the next $1,000), if any, of the Premium
 

Funding Target over the fair market value of assets.  
 

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Description of Data Elements

g    Uncapped Variable-rate                             Premium – Report the product of 0.014 and the amount of unfunded vested benefits.   

h Maximum Variable‐rate Premium

(1)	 MAP‐21 Cap – Report the product of the Participant Count and $412.

(2)  	 Small Employer Cap – Report the product of $5 and the Participant Count squared. If the plan does not

qualify for the Small Employer Cap, this item must be left blank.

(3)	 Maximum Variable‐rate Premium – If the plan qualifies for the Small Employer Cap, report the lesser of

the Small Employer Cap and the MAP‐21 Cap.  Otherwise, report the MAP‐21 Cap.

i	   Variable‐rate Premium – Report the lesser of the maximum Variable‐rate Premium and the uncapped

Variable‐rate Premium.  If the plan qualifies for the Small Employer Cap and chooses not to report uncapped

Variable‐rate premium data, report the maximum Variable‐rate Premium.

If this is a short plan year of coverage, the required Variable‐rate Premium may be a prorated portion of this

amount; however, the full year’s premium amount must be reported in this item.

Instructions for Part IV – Total Premium Information

8 Premium proration (If the plan does not qualify for premium proration, skip to item 9.)

a Number of months in the short plan year – Report the number of months (complete and partial) in the short

plan year. For this purpose, each plan month (i.e., each month in the plan year) generally begins on the

same day of each successive calendar month. For example, if the plan year begins on July 1, the first day of

each successive calendar month is the beginning of a new month; similarly, if the plan year begins on

January 15, the second plan month begins on February 15, the third plan month on March 15, etc. Thus, if a

short final year begins on January 1 and ends on June 1, there would be six (full or partial) months in the

short year. (The last (partial) month, beginning (and ending) on June 1, would count as a full month for

purposes of prorating the premium.) Similarly, if a short first year begins on July 31 and ends on December

31, there also would be six (full or partial) months in the short year.

There are two special rules when a plan year begins at or near the end of a calendar month:

 If the plan year begins on the last day of a calendar month, successive plan months begin on the last

day of successive calendar months. For example, if the plan year begins on November 30, successive

plan months begin on December 31, January 31, the last day of February (the 28th or 29th), March 31, etc.

 If the plan year begins on the 29th or 30th of a calendar month other than February, the plan month

beginning in February begins on the last day of February. For example, if the plan year begins on

November 29, successive plan months begin on December 29, January 29, the last day of February (the

28th or 29th), March 29, etc. If the plan year begins on December 30, successive plan months begin on

January 30, the last day of February (the 28th or 29th), March 30, April 30, etc.

Counting months for New and Newly Covered Plans – The short first year of a New Plan is treated as

beginning on the Participant Count Date (i.e., the plan effective date). The short first year of a Newly

Covered Plan is treated as beginning on the date when the plan becomes covered under ERISA section 4021.

Counting months for terminating plans – The (short) plan year of a terminating plan’s final year is treated as

ending on:

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Description of Data Elements

 for a Multiemployer Plan that distributed all its assets pursuant to ERISA section 4041A, the date the

distribution is completed; or

 for a Single‐employer Plan, the earlier of:

- the date on which the distribution of the plan’s assets in satisfaction of all Benefit Liabilities was

completed; or

- the date that a trustee for the terminating plan was appointed under ERISA section 4042.

b Total premium before proration – Report the sum of the Flat‐rate Premium and, if applicable, the Variable‐

rate Premium.

9 Total premium

 If the plan does not qualify for premium proration, report the sum of the Flat‐rate Premium and, if
 

applicable, the Variable‐rate Premium.
 

 If the plan qualifies for premium proration, multiply the total premium before reflecting proration by the

number of months (complete and partial) in the short plan year and then divide by 12. Round to two

decimal places after completing the calculation.

If this amount includes cents, report the exact amount (dollars and cents), not a rounded amount.

Instructions for Part V – Payment Information

10 Premium credit  

Report the total amount of premium credits available to offset the premium due. Premium credits include:

 Any payments made for 2014 (including an estimated Variable‐rate Premium when amending the filing

to reconcile the estimate; see “Correcting Errors, Credit Balances, Reconciling Estimates”  section), and

 Any overpayment of the 2013 premium filing for which a refund was not requested and that has not

been applied to amounts due. A plan account history is available on My PAA. You should review the

account history to confirm that a 2013 overpayment is available.

If this amount includes cents, report the exact amount (dollars and cents), not a rounded amount.

11 Amount due

If the total premium due exceeds the total premium credit, subtract the total credit from the total premium

and report the result as the amount due. This is the amount you owe PBGC. See Appendix 3 for information

on payment options.  

If this amount includes cents, report the exact amount (dollars and cents), not a rounded amount.

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Description of Data Elements

12 Treatment of Overpayment

a If the total premium is less than the total premium credit, subtract the total premium from the total credit

and report the result as an overpayment. If this amount includes cents, report the exact amount (dollars

and cents), not a rounded amount.

b If you have an overpayment, you must choose whether to have the overpayment credited towards the

next year’s premium for the plan or refunded (by electronic funds transfer or check). Report your choice

by checking the appropriate box.

 Credit ‐ If you choose to use the overpayment as a credit towards next year’s premium for the plan,

you should claim the overpayment amount as a credit on the next year’s premium filing for the plan.

 Refund ‐ If you choose to have the overpayment refunded, the quickest way to receive your refund is

to select the electronic funds transfer option, which we strongly recommend. To facilitate an ACH

electronic funds transfer, indicate whether the account is a checking account or savings account, and

provide the bank routing number and account number to which the refund is to be credited. If you

prefer your refund by Fedwire funds transfer (available only for refunds of $100,000 or greater),

please call 1‐800‐736‐2444 or 202‐326‐4242 and select option 2 (premiums) for instructions. For

Fedwire funds transfers, you can have the refund credited to a sub‐account within the main account if

you provide the sub‐account number to us.

Instructions for Part VI – Miscellaneous Information  

13 Final premium filing  

If this is the last premium filing for this plan, indicate the reason: (1) that the plan merged or consolidated

with another plan, (2) that the plan was trusteed under ERISA section 4042, (3) that the plan completed a

distribution pursuant to termination, or (4) that the plan ceased to be a covered plan.  

Report the date of the event that led to the cessation of the requirement to file. If the reason this is the last

premium filing is because:

 the plan merged or consolidated into another plan, report the effective date of the Merger or
 

Consolidation;
 

 the plan terminated in an involuntary or distress termination, report the effective date of the
 

trusteeship;
 

 there was a distribution of assets pursuant to a termination:

- for a Single‐employer Plan that completed a standard termination, report the date on which the

distribution of the plan’s assets in satisfaction of all Benefit Liabilities was completed, or  

- for a Multiemployer Plan that distributed all its assets pursuant to ERISA section 4041A, report the

date the distribution is completed; or

 the plan ceased to be covered by Title IV of ERISA, report the date coverage ceased.

See also “Failure to report a filing as the final premium filing” in the “Correcting Filings, Credit Balances,

Reconciling Estimates”  section.

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Description of Data Elements

14 Transfers from other plans

Pre‐existing plans – If another plan transferred assets or liabilities to this plan since the date of the most

recent comprehensive premium filing (or, if this is a filing for a plan year beginning in 2014, since the date of

the 2013 “final filing”), report the EIN and PN of the plan from which the assets were transferred (i.e., the

“transferor plan”).

New Plans – If this plan is a New Plan and another plan transferred assets or liabilities to this plan in

conjunction with the creation of this plan, report the EIN and PN of the plan from which the assets were

transferred.

Newly Covered Plans – If this plan is a Newly Covered Plan and another plan transferred assets or liabilities

to this plan on or after the date this plan became covered and before the date the premium filing is made,

report the EIN and PN of the plan from which the assets were transferred.

In all cases, report the date of the transfer and check the box that best describes the type of transfer (see

definitions of Merger, Spinoff, and Consolidation). For this purpose, the date of transfer is the date the

transfer went into effect.

Example – A merger agreement between two calendar‐year plans (Plans A and B) provides that participants

of Plan A will cease accruing benefits under Plan A and begin coverage and benefit accruals under Plan B as

of January 1, 2014, and that the obligation to pay benefits to Plan A participants will pass from Plan A to Plan

B as of that date. The agreement also provides that Plan A’s assets will be transferred to Plan B’s account as

soon as practicable. The transfer does not actually occur until February 17, 2014. If you are preparing a

comprehensive premium filing for Plan B for Plan B’s 2014 plan year, report “01/01/2014” as the date of

transfer.

Note that the date of a transfer is determined based on the facts and circumstances of the particular

situation. (For transfers subject to section 414(l) of the Code, report the date determined under 26 CFR

1.414(l)‐1(b)(11).)

If the transfer is the result of something other than a Merger, Spinoff, or Consolidation, for example, a

reciprocity arrangement where assets and liabilities are transferred between two plans when an employee

changes locations or changes status (e.g., from Salaried to Hourly and as a result becomes covered by

another plan), check the “Other” box. Also check the “Other” box if you have no way of determining

whether the transferor plan ceased to exist in connection with a Merger or Consolidation into your plan.

If more than one transferor plan is involved, provide the above information with respect to each transferor

plan.

15 Transfers to other plans

Pre‐existing plans – If this plan transferred assets or liabilities to another plan since the date of the most

recent comprehensive premium filing (or, if this is a filing for a plan year beginning in 2014, since the date of

the 2013 “final filing”), report the EIN and PN of the plan to which the assets were transferred (i.e., the

“transferee plan”). In addition, report the date of transfer and check the box that best describes the type of

transfer.

New Plans – If this plan is a New Plan and this plan transferred assets or liabilities to another plan on or after

the earlier of the Plan Adoption Date and the effective date, and before the date the premium filing is made,

report the EIN and PN of the plan to which the assets were transferred and the type of transfer.

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Description of Data Elements

Newly Covered Plans – If this plan is a Newly Covered Plan and this plan transferred assets or liabilities to

another plan on or after the date the plan became covered and before the date the premium filing is made,

report the EIN and PN of the plan to which the assets were transferred and the type of transfer.

In all cases, if more than one transferee plan is involved, provide the above information with respect to each

transferor plan. See instructions to item 14 for more information on what is to be reported for “date of

transfer.”

Example – Until November 1, 2013, Plan E covered employees at Division 1. As a result of the sale of

Division 1 to another sponsor (Employer X), assets and liabilities are spun off from Plan E to Plan F (a plan

sponsored by the new owner) effective November 1, 2013. If you are preparing a 2014 comprehensive

premium filing for Plan E, report Employer X’s EIN and the PN of Plan F. In addition, check the “Spinoff” box

to report that the transfer occurred as the result of a Spinoff and report “11/01/2013” as the date of

transfer.

16 Participation freeze

If, as of the beginning of the Premium Payment Year, participation is limited to participants who were

covered by the plan as of a specified date (i.e., the plan is closed to new entrants), enter the date the plan

became closed to new entrants.

17 Benefit accrual freeze

If, as of the beginning of the Premium Payment Year, the plan is partially or totally frozen for benefit accrual

purposes, enter the date the freeze became effective and indicate the nature of the freeze by reporting

whether (1) both pay and service are frozen for all participants, (2) both pay and service are frozen for some

participants, (3) for all participants, service is frozen, but pay is not, (4) for some participants, service is

frozen, but pay is not, or (5) some other type of accrual freeze is in effect (in which case you must provide a

description of the freeze).

If more than one description applies (for example, if pay and service are frozen for employees at location X

and only service is frozen for employees at location Y), select “Other” and provide a description.

If more than one freeze has occurred, report the date and nature of the most recent freeze.

18 Amended filings – Complete this item only if this is an amended filing.

a. If either first day or the last day of the premium payment year reported in this amended filing (item 4b(1))

differs from what was reported in the original filing (i.e., the filing that is being amended), provide the

dates that were reported in the original filing.

b. If the EIN and PN reported in this amended filing (item 4c(1)) are not both the same as what was reported

in the original filing (i.e., the filing that is being amended), report the EIN and PN from the original filing.

c. If this is an amended filing for a reason other than reconciling an estimated Variable‐rate Premium and

the amended filing shows a lower premium than the amount that was originally reported, you must

provide an explanation of the specific circumstances or events that caused the reduction.

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Description of Data Elements

Instructions for Part VII – Certifications

19 Plan Administrator Certification

All of the information reported in this filing must be certified by the Plan Administrator. Follow the

certification instructions for the electronic filing method that is used to make the filing. Be sure to provide

the Plan Administrator’s name and the telephone number. If the Plan Administrator has an e‐mail address,

that address must also be reported.

20 Enrolled Actuary Certification

An enrolled actuary must certify the Variable‐rate Premium calculation unless:

 The plan is a Multiemployer plan (and thus, there is no Variable‐rate Premium).

 The plan is a Single‐employer Plan and is either:

- exempt from the Variable‐rate Premium, or

- eligible for the Small Employer Cap and is paying the maximum Variable‐rate Premium (and not

reporting the regular Variable‐rate Premium).

Be sure to provide all of the required information related to the enrolled actuary (i.e., name, firm, telephone

number, enrollment number, and if the enrolled actuary has an e‐mail address, email address).    

The actuary must follow the certification instructions for the electronic filing method that is used to make

the filing.

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Late Payment Charges

General

If you file a premium payment after the due date, we will bill the plan for late charges. The late charges include

both interest and penalty charges. The charges are based on the outstanding premium amount due on the due

date. If your due date is extended because it falls on a weekend or federal holiday, and your premium payment

is filed after the extended due date, interest and penalty will be computed from the actual (unextended) due

date. PBGC also may assess penalties under ERISA section 4071 for failure to timely provide premium‐related

information.

Late Payment Interest Charges

The late payment interest charge is set by ERISA, and we cannot waive it. Interest accrues at the rate imposed

under section 6601(a) of the Code (the rate for late payment of taxes) and is compounded daily. These rates are

published by IRS quarterly and are also posted on “Interest Rates and Factors” section of the Practitioners Page

at www.pbgc.gov.

Late Payment Penalty Charges

The amount of the late payment penalty charge depends on whether the premium underpayment is

“self‐corrected” and how late the payment is.

If the late payment is made on or before the date when PBGC issues a written notification indicating that there

is or may be a premium delinquency (for example, a statement of account (premium invoice), a past‐due‐filing

notice, or a letter initiating an audit), the penalty rate is 1% of the late premium payment per month capped at

50% of the unpaid amount.

If the late payment is made after that date, the penalty rate is 5% per month capped at 100% of the unpaid

amount.

In both cases, the penalty before reflecting the applicable cap is subject to a $25 minimum.

Minimizing Late Payment Charges

If you cannot make a filing by the due date because you are having difficulty determining some of the required

information, you can minimize late payment charges by submitting payment (the amount due or an estimate)

without submitting the certified filing. If you choose to do this, you must pay by check or wire transfer outside of

My PAA. Additional information on payment options is included in Appendix 3. You should then submit your

certified filing as soon as possible.

PBGC does not recommend this procedure. We may assess a penalty under ERISA section 4071 for failure to

furnish premium‐related information by the required due date, and making a premium payment without an

accompanying premium information filing may cause significant delay in providing a statement of account for

the plan. However, when the information filing is ultimately made, the payment will be credited as of the date it

was filed and thus stop the accrual of late payment charges on the amount paid.

Saturday, Sunday, and Federal Holidays

As explained in the “When to File” section, if your premium filing due date falls on a Saturday, Sunday or Federal

Holiday, it is extended automatically to the next business day. However, if your premium payment is filed after

the extended due date, interest and penalties will be computed from the actual (unextended) due date.

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Late Payment Charges

Example – Assuming the small plan transition rule does not apply, the Normal Due Date for a plan with a plan

year beginning on February 1, 2014 would be November 15, 2014. Because that day is a Saturday, the due date

is Monday, November 17, 2014. If the filing is made after November 17th, late payment charges, if applicable,

will be computed from Saturday, November 15, 2014, not November 17th.

Notices from PBGC

Past Due Filing Notices

If our records indicate that a premium filing is missing for a particular plan year, we will send a “Past Due Filing

Notice” to the address reported on the most recent filing. If you receive a Past Due Filing Notice that appears to

be in error, contact our customer service representatives (see Appendix 2 for contact information). If a filing was

in fact required, after we receive the late filing, we will send a statement of account assessing late payment

charges.

Statements of Account

If your payment is late or less than the required amount, we will send a “Statement of Account” (SOA). The SOA

is, in essence, an invoice for premium, penalty, and interest amounts owed to PBGC. To ensure that the amount

due does not increase, the premium and interest must be paid within 30 days of the SOA's issue date. If you

receive an SOA that appears to be in error, contact our customer service representative (see Appendix 2 for

contact information).

Penalty Waivers

Case‐by‐Case Waivers

If you receive an SOA (see above) that includes a penalty charge, but you believe there is a reason why all or a

portion of the penalty should be waived (e.g., reasonable cause), you may request a waiver. Information about

what constitutes reasonable cause as well as information about other situations where a penalty waiver might

be warranted can be found in § 21 of the appendix to PBGC’s premium payment regulation, 29 CFR Part 4007,

available on the “Resources” section of www.pbgc.gov.

The instructions and timeframe for requesting a waiver will be provided in the SOA. Be sure to follow the

instructions carefully. Requests that are submitted past the allotted timeframe will not be granted.

Hardship (i.e., “Statutory”) Waivers

If, before the filing due date, you can show substantial hardship and that you will be able to pay the premium

within 60 days after the filing due date, you may request that we waive the late payment penalty charge. If we

grant your request, we will waive the late payment penalty charge for up to 60 days. To request a waiver,

contact PBGC at least 30 days before the filing due date. Be sure to include specific information and documents

to demonstrate both that it will be a substantial hardship to make the payment on or before the filing due date

and that you will have the ability to make the payment within 60 days after the filing due date.

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Late Payment Charges

Automatic Penalty Waiver for Premiums paid Within Seven Days of Due Date

If the sole reason a late payment penalty charge applies is because a premium was paid after the due date, but

within seven calendar days of the due date, the late payment penalty charge will automatically be waived.   

Automatic Penalty Waiver for Certain Late Variable‐Rate Premiums

As explained in the “When to File” section, in rare circumstances (e.g., a mid‐year merger or change in

actuary), the Premium Funding Target might not be calculated or finalized by the premium due date.  PBGC

allows plans in this situation to file timely and pay an estimated Variable‐rate Premium by the due date and

then submit an amended filing at a later date to reconcile the actual Variable‐rate Premium with the estimate.   

Because a plan’s full Variable‐rate Premium (not merely an estimate) is due by the due date, if the full amount is

not paid by that date, the plan will be subject to late payment interest charges and may also be subject to late

payment penalty charges.

If the actual Variable‐rate Premium is greater than the estimate, penalties for late payment will be waived if:

 the reconciliation filing is made and any additional required Variable‐rate Premium paid by the end of the

sixth calendar month that begins on or after the premium due date (generally April 30th after year‐end for

calendar year plans), and

 by the premium due date, you report:

- the fair market value of the plan’s assets, and

- an estimate of the Premium Funding Target that is certified by an enrolled actuary to be a reasonable

estimate that:

o takes into account the most current data available to the enrolled actuary;

o has been determined in accordance with generally accepted actuarial principles and practices; and

o uses the calculation methodology (alternative or standard) in effect for the plan year; and

 by the premium due date, you pay at least the amount of Variable‐rate Premium determined from the value

of assets and estimated Premium Funding Target so reported.

Note that this waiver applies only to estimated Premium Funding Targets, not estimated asset values. If the

asset value reported in the reconciliation filing differs from what was reported in the original (i.e., estimated)

filing, this automatic penalty relief will be lost. However, PBGC will consider a request for an appropriate penalty

waiver in such a situation and, in acting on the request, will consider such facts and circumstances as the reason

for the mistake, whether assets were over‐ or understated, and, if assets were overstated, the extent of the

overstatement.

If you know the final Premium Funding Target by the time the Variable‐rate Premium is due, you should pay the

amount owed by that date. If you do so, you will avoid the interest charge and any penalty charge. If you report

that you are making a filing based on an estimated Premium Funding Target, you will be required to make an

amended filing reflecting the actual Premium Funding Target by the date the variable‐rate reconciliation filing is

due.

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Correcting Errors, Credit Balances, Reconciling Estimates

Correcting Errors

Making Payment Without Filing Information

If you make a premium payment without filing the related premium information, file the information as soon as

possible to get proper credit for your payment and minimize any late filing penalty. Follow the instructions in

this document or in My PAA for identifying your payment so that we can associate it with your information filing.

Filing Information Without Making Required Payment

If you make a filing of premium information without making a required payment, send the payment as soon as

possible to minimize late payment charges. Follow the instructions in this document or in My PAA for identifying

your payment so that we can associate it with your information filing.

Failure to report a filing as the final premium filing

If you make a premium filing that is a “Final premium filing” as described in item 13 of the comprehensive

premium filing instructions, and you do not provide the information required by item 13, you must make an

amended filing if the event referred to in item 13 occurred before you made your original filing, unless —

 The event was a distribution of assets pursuant to plan termination and was reported on PBGC Form 501, or

 The event was a merger into or consolidation with another plan and was reported on a premium filing for

the surviving plan.

If you make a premium filing that is a “Final premium filing” as described in item 13 of the comprehensive

premium filing instructions, and you do not provide the information required by item 13 because the event

referred to in item 13 has not yet occurred when you make the filing, you are not required to make an

amended filing. However, to avoid the need for correspondence to establish why you are not making any more

premium filings, we recommend that you contact us to report the event, unless —

 The event was a distribution of assets pursuant to plan termination and is being reported on PBGC Form 501,

or

 The event was a merger into or consolidation with another plan and is being reported on a premium filing

for the surviving plan.

Even if an amended filing is not required, you may want to make one where the plan has made a distribution of

assets pursuant to plan termination, because that event may enable you to reduce the premium through

proration.

Amending Filings  

If, after submitting a filing, you discover an error has been made (e.g., reported information is incorrect), you

must amend the filing to report the correct information even if the correction has no impact on the premium

amount. A filing can be amended by resubmitting the filing with the corrected information. Be sure to indicate

that the filing is an amendment to a previously submitted filing (see “Description of Data Elements” sections).  

In the amended filing, report all of the required information, including information that was correct in the

original filing (i.e., the filing that is being amended).  Include as credits all the credits you previously claimed

increased by the amount you paid with your most recent filing and reduced by any refund you requested.

If the originally reported premium:

 was too low, the additional premium due will equal the excess of the revised total premium amount over

the revised total credit. Pay the additional premium due when you submit your amended filing. In this case,

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Correcting Errors, Credit Balances, Reconciling Estimates

late payment interest charges will apply and late payment penalty charges may apply. You will receive an

invoice for these charges after your amended filing is received. You may include payment of anticipated late

payment charges when you pay the additional premium, but the amount reported on the amended filing

should reflect only the additional premium due.

 was too high, the overpayment will equal the excess of the revised total credit over the revised total

premium.  You must indicate whether you want the overpayment refunded or applied to the next year’s

premium for the plan.  We recommend that small credit amounts be carried over to the next plan year.  To

do so, simply enter the relevant amount under “Premium Credits “in the next year’s premium filing.  See line

10b on the illustrative form in the “Data to be Submitted” section.

If you prefer a refund by electronic funds transfer (EFT), provide the necessary information in the applicable

section of the amended filing; we will make the transfer through the ACH system or Fedwire (Fedwire

transfers are available only for refunds of $100,000 or greater). For Fedwire funds transfers, you can have

the refund credited to a sub‐account within the main account if you provide the sub‐account number to us.

With either option, the overpayment will appear as a “credit” on your plan’s account history until it is

refunded or used to satisfy a future year’s premium.  See section below on Premium Credit Balances.

Required explanation if premium amount decreases

If you amend a comprehensive filing for a reason other than reconciling an estimated Variable‐rate Premium

and the amended filing shows a lower premium than the amount that was originally reported, you must provide

an explanation of the specific circumstances or events that caused the reduction. For example, if your original

comprehensive filing’s Participant Count included employees at a division that is not covered by the plan, you

would explain why the employees were erroneously counted as participants and how the error was discovered.

Amending a prior year’s filing

Note that if you are amending a filing for an earlier year, you must follow the instructions for that year except

that current mailing and electronic funds transfer (EFT) addresses should be used instead of the addresses that

were included in the instructions for the original filing (i.e., the filing that is being amended). Prior year

instructions are available in the “Premium Payment Instructions and Addresses” section of the Practitioners

Page at www.pbgc.gov.

Premium Credit Balances

Premium credit balances, whether resulting from an amended filing or any overpayment, are shown on plans’

account histories and can be viewed in My PAA at any time.   We recommend you review your plan’s account

history before you file to ensure that any available credits from the prior plan year have been used.   If you have

a credit from two or more years prior to the Premium Payment year, you will need to contact the Premium

Customer Service Center in order to use it (See Appendix 2).

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Correcting Errors, Credit Balances, Reconciling Estimates

Reconciling Estimates

For plans that filed an estimated Variable‐rate Premium, the reconciliation is made by amending the filing that

included the Variable‐rate Premium estimate. This reconciliation filing serves to finalize a previously estimated

Premium Funding Target; it does not afford an opportunity to elect to use the alternative method after the due

date for such election (or to revoke a prior election after the due date for such revocation). See the instructions

for item 7d in the “Description of Data Elements” section for additional information on how to reconcile an

estimated Variable‐rate Premium.

Failure to reconcile these estimates in a timely manner will result in late payment charges if the estimate to be

reconciled was too low. PBGC may also assess penalties under ERISA section 4071 for failure to reconcile

estimated premium filings by the reconciliation due date.

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Recordkeeping Requirements and PBGC Audits

Recordkeeping Requirements

Plan Administrators are required to retain all plan records that are necessary to establish, support and validate

the amount of any PBGC premium required to be paid and any information required to be reported. The records

must include calculations and other data prepared by an enrolled actuary, the Plan Sponsor, and an employer

required to contribute to the plan with respect to its employees; or for a plan described in section 412(e)(3) of

the Code, by the insurer from which the insurance contracts are purchased. The records must be kept for six

years after the premium due date.

Records that must be retained include, but are not limited to, records that establish the number of plan

participants and the amount of unfunded vested benefits on which the Variable‐rate Premium is based. For this

purpose, the term “records” includes, but is not limited to, plan documents; participant data records; personnel

and payroll records; actuarial tables, worksheets, and reports; records of computations, projections, and

estimates; benefit statements, disclosures, and applications; financial and tax records; insurance contracts;

records of plan procedures and practices; and any other records, whether in written, electronic, or other format,

that are relevant to the determination of the amount of any premium required to be paid or any premium‐

related information required to be reported.

Records retained must be made available or submitted to PBGC promptly upon request. If a record to be

produced for PBGC inspection and copying exists in more than one format, it must be produced in the format

that PBGC specifies.

PBGC Audits

We may audit any premium filing; inspect and copy any records that are relevant to the determination of the

amount of any premium required to be paid and any premium‐related information required to be reported; and

require disclosure and demonstration of any system used to determine any premium required to be paid or

premium‐related information required to be reported, so that PBGC can assess the system’s effectiveness and

reliability.

If we determine upon audit that the full amount of the premium due was not paid, late payment interest

charges under §4007.7 of the Premium Regulations and late payment penalty charges under §4007.8 of the

Premium Regulations will apply to the unpaid balance from the premium due date to the date of payment (see

“Late Payment Charges” section for more information on penalties and interest for late payment of premiums).

If, in our judgment, the plan’s records fail to establish the number of participants with respect to whom

premiums were required, we may rely on data we obtain from other sources (including the Internal Revenue

Service and the Department of Labor) for presumptively establishing the number of plan participants for

premium computation purposes. Similarly, if, in our judgment, the plan’s records fail to establish the unfunded

vested benefits amount reported in the premium filing, we may rely on data we obtain from other sources for

estimating the unfunded vested benefits for premium computation purposes.

In addition to penalties for late payment of premiums, we may assess a penalty under ERISA section 4071 for

failure to furnish premium‐related information by required due dates.

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Appendix 1 – Definitions

Definitions for terms shown in capital letters throughout the instructions are shown below. New or modified

terms are highlighted in green for emphasis.

“Alternative Premium Funding Target” – see “Premium Funding Target”

“Benefit Liabilities” means all liabilities with respect to employees and their beneficiaries under the plan (within

the meaning of Code section 401(a)(2)). Thus, Benefit Liabilities include liabilities for all accrued benefits,

whether or not vested. In addition, a plan’s Benefit Liabilities include liabilities for ancillary benefits not directly

related to retirement benefits, such as disability benefits not in excess of the qualified disability benefit, life

insurance benefits payable as a lump sum, incidental death benefits, or current life insurance protection (see

Treasury Regulation § 1.411(a)‐7(a)(1)).

“Consolidation” means a transaction in which two or more plans transfer all of their assets and liabilities to a

New Plan and, as a result, cease to exist (because the transferor plans become part of the new transferee plan).

It differs from a Merger because in a Merger, the transferee plan existed before the transaction. In a

Consolidation, the transferee plan is a New Plan that is created in the Consolidation. Thus, the plan that exists

after a Consolidation follows the premium filing rules for New Plans.

“Code” means the Internal Revenue Code of 1986, as amended.

“Continuation Plan” means a new plan resulting from a consolidation or spinoff that is not de minimis pursuant

to the regulations under section 414(l) of the Code.

“EIN” means Employer Identification Number. It is always a nine‐digit number assigned by the Internal Revenue

Service for tax purposes.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended (29 U.S.C. 1001 et seq.).

“Flat‐rate Premium” means the portion of the premium determined by multiplying the flat premium rate by the

number of participants in the plan on the Participant Count Date.

“Form 5500 Series” means Form 5500, Annual Return/Report of Employee Benefit Plan, jointly developed by the

Internal Revenue Service, the Department of Labor, and PBGC.

“Lookback Rule” means the provision under which the Variable‐rate Premium for the Premium Payment Year is

determined based on UVBs for the plan year immediately preceding the Premium Payment year instead of the

Premium Payment Year.

“Lookback Year” means the plan year immediately preceding the Premium Payment Year.

“MAP‐21 Cap” means the per‐participant cap on the Variable‐rate Premium as provided in The Moving Ahead

for Progress in the 21st Century Act.

“MAP‐21 Stabilization Rules” means the provisions of section 40211 of The Moving Ahead for Progress in the

21st Century Act under which the volatility of certain discount rates used for funding purposes is limited by

constraining them within a specified corridor.

“Merger” means a transaction in which one or more plans transfer all of their assets and liabilities to an existing

plan and, as a result, cease to exist (because the transferor plan(s) become part of the transferee plan). It differs

from a Consolidation because in a Consolidation, the transferee plan did not exist before the transaction. In a

Merger, the transferee plan is an existing plan and follows the rules for preexisting, ongoing plans.

“Multiemployer Plan” (subject to the provisions of ERISA sections 3(37)(E) and (G) and 4303, dealing with

elections to be treated or not to be treated as a Multiemployer Plan) means a plan:

 to which more than one employer is required to contribute,

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Appendix 1 – Definitions

 which is maintained pursuant to one or more collective bargaining agreements between one or more

employee organizations and more than one employer, and

 which satisfies such other requirements as the Secretary of Labor may prescribe by regulation.

For purposes of determining whether a plan is a Multiemployer Plan or a Single‐employer Plan, all trades or

businesses (whether or not incorporated) that are under common control are considered to be one employer.

“Multiple‐employer plan” means a plan to which more than one employer contributes that is not a

Multiemployer Plan.  
 

“My PAA” means “My Plan Administration Account,” PBGC’s electronic premium filing application.
 

“New or Newly Covered Plan” means a plan that is either a New Plan or a Newly Covered Plan.  In some cases,

the term “New and Newly Covered Plan” is used for the same purpose.

“New Plan” means a plan that did not exist before the Premium Payment Year. This includes a plan resulting

from a Consolidation or Spinoff. A plan that meets this definition is considered to be a New Plan even if the plan

constitutes a successor plan within the meaning of ERISA section 4021(a).

“Newly Covered Plan” means a plan that becomes covered by title IV of ERISA during the premium payment

year and that existed as an uncovered plan immediately before the first date in the premium payment year on

which it was a covered plan.  

“Normal Premium Due Date” means the date premiums are due unless some special situation applies (i.e., a

change in plan year, first time filing, or a standard termination).  See “When to File” section.

“Participant” of a plan means an individual (whether active, inactive, retired, or deceased) with respect to

whom the plan has Benefit Liabilities. See “How to Count Participants” section for more information.

“Participant Count” means the number of participants on the Participant Count Date. See “How to Count

Participants” section for more information.

“Participant Count Date” means the date on which participants are counted for purposes of determining the

Flat‐rate Premium, the MAP‐21 CAP on the Variable‐rate Premium, whether the plan is a Small Plan, and, if

applicable, the Small Employer Cap on the Variable‐rate Premium. In general, it is the last day of the plan year

preceding the Premium Payment Year, but there are some exceptions. See “How to Count Participants” section

for more information.

“Plan Administrator” means:

 the person specifically so designated by the terms of the instrument under which the plan is operated; or

 if an administrator is not so designated, the Plan Sponsor.

“Plan Adoption Date” means the date on which a plan was formally adopted.

“Plan Sponsor” is determined as follows:

 For a Single‐employer Plan with:

- one contributing sponsor, the Plan Sponsor is the contributing sponsor;  

- two or more contributing sponsors that are all in a single controlled group, the Plan Sponsor is the

parent of the controlled group or, if there is no parent, the largest member of the controlled group

(whether or not the parent or largest member is a contributing sponsor);

- two or more contributing sponsors that are not all in a single controlled group, the Plan Sponsor is

determined as follows: first identify the controlled group, or contributing sponsor that is not in a

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Appendix 1 – Definitions

controlled group, that has the most participants in the plan. If you identify a contributing sponsor that

is not in a controlled group, the Plan Sponsor is that contributing sponsor. But if you identify a

controlled group, then the Plan Sponsor is the parent of that controlled group or, if there is no parent,

the largest member of that controlled group (whether or not the parent or largest member is a

contributing sponsor).

 For a Multiemployer Plan, the Plan Sponsor is the association, committee, joint board of trustees, or other

entity that establishes or maintains the plan.

“PN” means Plan Number. This is always a three‐digit number. The employer maintaining the plan assigns this

number to distinguish among employee benefit plans established or maintained by the same employer. An

employer usually starts numbering pension plans at “001” and uses consecutive Plan Numbers for each

additional plan. Once a PN is assigned, always use it to identify the same plan. If a plan is terminated, retire the

PN — do not use it for another plan.

“Premium Funding Target” is the liability measure used to determine the Variable‐rate Premium. This is similar

to the funding target that is used to determine the minimum funding requirement except that only vested

benefits are taken into account. The discount rates used to determine this amount vary depending on which

calculation method is used (standard or alternative):

 “Standard Premium Funding Target” means a Premium Funding Target determined using the ERISA section

4006(a)(3)(E)(iv) segment rates.

 “Alternative Premium Funding Target” means a Premium Funding Target determined using ERISA section

303 (i.e., funding) discount rates , but without regard to the MAP‐21 Stabilization Rules. See “How to

Determine Unfunded Vested Benefits” section for additional information related to the election and use of

the Alternative Premium Funding Target.

“Premium Payment Year” means the plan year for which the premium is being paid.  For example, since this

document relates to premium filings for plan years beginning in 2014, all references to “Premium Payment Year”

relate to plan years beginning in 2014.

“Premium Regulations” means PBGC’s regulations on Premium Rates and Payment of Premiums (29 CFR Parts

4006 and 4007). The premium filing procedures (including the My PAA electronic filing application, paper

instructions, and forms) are prescribed under and implement the Premium Regulations.

“Schedule SB” means Schedule SB to the Form 5500 Series.

“Single‐employer Plan” means any plan that is not a Multiemployer Plan. A Single‐employer Plan includes a

Multiple‐employer Plan. For purposes of determining whether a plan is a Multiemployer Plan or a Single‐

employer Plan, all trades or businesses (whether or not incorporated) that are under common control are

considered to be one employer.

“Small‐Employer Cap” means the maximum Variable‐rate Premium due for certain plans of small employers,

generally employers with 25 or fewer employees.  For these plans, the maximum Variable‐rate Premium is the

product of $5 and the Participant Count squared.

“Small Plan” means a plan:

 With a Participant Count for the Premium Payment Year of not more than 100, or

 With a funding valuation date for the Premium Payment Year, determined in accordance with ERISA section

303(g)(2), that is not the first day of the Premium Payment Year.

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Appendix 1 – Definitions

“Spinoff” means a transaction in which the transferor plan transfers only part of its assets and/or liabilities to

the transferee plan. The transferee plan may be a New Plan that is created in the Spinoff, or it may be a

preexisting plan that simply receives part of the assets and/or liabilities of the transferor plan.

“Standard Premium Funding Target” – see “Premium Funding Target”

“UVB Valuation Date” means the date on which UVBs are determined.  This date is the plan’s funding valuation

date determined in accordance with ERISA section 303(g)(2) for:

 In the case of a plan using the Lookback Rule, the Lookback Year, or

 In the case of any other plan, the Premium Payment Year.

”UVBs” means unfunded vested benefits, the term used to describe the underfunding measure on which the

Variable‐rate Premium is based.  

“Variable‐rate Premium” means the portion of the single‐employer premium based on a plan’s unfunded

vested benefits.  

“We” or “us” refers to the Pension Benefit Guaranty Corporation.

“You” or “your” refers to the Plan Administrator.

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Appendix 2 – Contact information

1.	 PBGC’s Web site (www.pbgc.gov) contains pension plan information of interest to Plan Administrators

and practitioners, such as electronic premium filing, current and prior premium filing booklets, frequently

asked questions, interest rates, regulations, etc. This information can typically be accessed via the

Practitioners Page or Resources Page. Note that you can access or subscribe to “What’s New for

Practitioners” that provides information on recent events (e.g., disaster relief, etc.).

2.	 Submit electronic premium filings (including electronic amended filings) through “My Plan Administration

Account” (My PAA) at www.pbgc.gov. Access My PAA information via the “Online Premium Filing (My

PAA)” section of the Practitioners Page at www.pbgc.gov and follow instructions about how to use My

PAA for submitting premium payments.

3.	 For all premium‐related inquiries and requests, including requests for exemption from the requirement

to file electronically, premium filing questions (for electronic or paper filings), requests for instructions,

address changes, requests for refunds (that are not submitted with premium filings), and requests for

penalty waivers:

a.	 Mail (U.S. Postal Service or private delivery service): Send to the address posted on Web site under

Premium Filings.

b.	 Call: 1‐800‐736‐2444 or 202‐326‐4242 and select option 2 (premiums). Note – requests for

exemptions from e‐filing requirement cannot be made by phone.

c.	 Fax: 202‐326‐4250

d.	 E‐mail: premiums@pbgc.gov

4.	 For current interest rate information:

a.	 Call: 202‐326‐4041

b.	 See: “Interest Rates and Factors” section on the Practitioners Page at www.pbgc.gov.

5.	 For assistance on coverage determination or plan termination:

a.	 Call: 1‐800‐736‐2444 or 202‐326‐4242

b.	 E‐mail: standard@pbgc.gov

c.	 Write to:
 

Pension Benefit Guaranty Corporation
 

Standard Termination Compliance Division, Suite 930
 

Processing and Technical Assistance Branch
 

1200 K Street, NW

Washington, DC 20005‐4026

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Appendix 2 – Contact information

6.	 If you have a complaint about the service you have received or still need assistance after calling our

practitioner telephone numbers listed in item 4 (1‐800‐736‐2444 or 202‐326‐4242), please contact the

Problem Resolution Officer (Practitioners):

a.Call: 1‐800‐736‐2444, ext. 4136 or 202‐326‐4136

b.E‐mail: practitioner.pro@pbgc.gov

c.Write to:
 

Pension Benefit Guaranty Corporation
 

Problem Resolution Officer (Practitioners); Suite 610
 

1200 K Street, NW

Washington, DC 20005‐4026

7.	 For questions about our Premium Compliance Evaluation Program:

a. Call: 1‐800‐736‐2444, ext. 6855 or 202‐326‐4161, ext. 6855

b. E‐mail: pce@pbgc.gov

8.	 For software developers requesting approval of XML files produced by private‐sector software for use in

My PAA, follow the submission instructions on the “Software Developer E‐filing Resources for Integrating

with PBGC” webpage. The link to this webpage is found in the section titled “Related Information” on the

right side of the “Online Premium Filing with My PAA” webpage.

PBGC’s business hours are 8:00 am to 5:00 pm Eastern time, Monday through Friday, except Federal Holidays.

TTY/TDD users may call the Federal relay service toll‐free at 1‐800‐877‐8339 and ask to be connected to any

telephone number.  

Note – We cannot accept collect calls.

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Appendix 3 – On‐line Premium Filing with My PAA

Introduction

My Plan Administration Account (My PAA) is a secure, Web‐based application that enables you to electronically

submit premium filings and payments to PBGC. Although electronic filing of premium information is mandatory,

payments may be made either electronically or by paper check.

Information about how to use My PAA may be accessed through the Practitioners Page at www.pbgc.gov as

well as within the My PAA application itself. Detailed information (e.g., FAQs and Demos) is located in the

“Online Premium Filing (My PAA)” section of the Practitioners Page at www.pbgc.gov.

To use My PAA, you must set up a My PAA account which includes a user ID and password. Each My PAA user

needs only one account, which can include an unlimited number of plans.  

My PAA offers three e‐filing methods:

 You can use My PAA’s data entry and editing screens to create a filing; route it to others for review, editing,

and electronic certification; and submit it electronically to PBGC. Each person who participates in the

electronic processing of the filing must have a My PAA account.

 You can use private‐sector software that is compatible with My PAA to create a filing, and then import the

filing data into My PAA’s data entry and editing screens for routing, review, editing, electronic certification,

and electronic submission to PBGC. Each person who participates in the electronic processing of the filing

must have a My PAA account.

 You can use private‐sector software that is compatible with My PAA to create a filing, and then upload the

filing to PBGC via the My PAA application. The filing cannot be routed, reviewed, or edited in My PAA. In

most cases, a paper copy or copies of the filing must be certified outside of My PAA and retained in plan

records. Only the person who uploads the filing must have a My PAA account.

My PAA’s Data Entry and Editing Screens

Entering information

My PAA’s data entry and editing screens walk you through a step‐by‐step process to create a premium filing. For

example, in the first step you identify the type of plan (Single‐employer or Multiemployer) for which the filing is

being submitted, and the plan year. Instructions are provided at each step.

The information entered in each step determines the content of the successive steps. For example, if you

indicate that you are preparing a comprehensive premium filing for a Single‐employer Plan, the later steps will

request information needed to determine the amount of the Variable‐rate Premium (if applicable). However, if

you indicate that you are preparing a comprehensive premium filing for a Multiemployer Plan, the Variable‐Rate

Premium screens will be suppressed.  

The required mathematical calculations are automated. For example, My PAA automatically multiplies your

Participant Count by the applicable flat premium rate to generate the Flat‐rate Premium.

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Appendix 3 – On‐line Premium Filing with My PAA

E‐filing team

Multiple people can contribute to a plan’s filing in My PAA’s data entry and editing screens. For example, some

information might be entered by the Plan Administrator and other information by an actuary. The people

authorized to contribute to a plan’s premium filing in My PAA’s data entry and editing screens are those who

have the plan in their My PAA accounts, and are referred to as the plan’s “e‐filing team.”

Routing filings

Filings in progress can be routed among e‐filing team members through My PAA for input, review, editing, e‐

certification of information, authorization of payment, and submission to PBGC. The person routing the filing to

another member of the e‐filing team can provide comments and instructions for the person to whom the filing is

being routed. My PAA sends that person an e‐mail notice (with the comments and instructions) stating that the

filing has been routed for the recipient’s action and that the recipient is now “holding” that filing. After all

information has been provided and certified, and payment (if any) has been authorized, the filing can be

electronically submitted to PBGC by the Plan Administrator or Filing Coordinator.

Using Private‐Sector Software with My PAA

Compatibility with My PAA

You can use private‐sector software to prepare a premium e‐filing, but the software you use must be compatible

with My PAA. That means that the software must be able to place your filing in an electronic file that is in “XML”

format and meets PBGC specifications. The specifications are posted on PBGC’s Web site (www.pbgc.gov).

Private‐sector software providers and developers submit to PBGC sample filings in XML format for PBGC review

and assignment of vendor numbers; you should review PBGC’s Web site or check with your software provider or

developer to find out whether your software is capable of creating an XML file in the proper format for use with

My PAA. If your compatible private‐sector software permits, you can create batch files containing more than one

premium filing for use with My PAA.

Importing a filing

A premium filing that has been prepared with compatible private‐sector software can be “imported” into My

PAA’s data entry and editing screens. That means that the information in the filing is placed into the data entry

and editing screens and can then be electronically routed, reviewed, edited, certified, and submitted to PBGC as

described above (see My PAA’s Data Entry and Editing Screens). To import a filing for a plan, the plan must be in

your My PAA account. My PAA provides instructions for importing filings. My PAA’s import feature also allows

multiple filings to be imported at the same time.

Uploading a filing

A premium filing that has been prepared with compatible private‐sector software can also be “uploaded”

through My PAA. That means that the fully‐completed filing is submitted directly to PBGC and, therefore, cannot

be reviewed or edited in My PAA before submission to PBGC. My PAA’s upload feature also allows multiple

filings to be uploaded at the same time (i.e., a batch upload).

To upload a filing for a plan, the plan need not be in your My PAA account, but you must have a My PAA account

with at least one plan in it. You must electronically certify in My PAA that you have authority to submit the filing

for the plan, but in most cases the information in the filing must be certified on paper outside My PAA, and the

certified information must be retained in plan records. (The Plan Administrator’s (or enrolled actuary’s)

certification can be made on‐line if it is the Plan Administrator (or enrolled actuary) who uploads the filing.) My

PAA provides instructions for uploading filings and for certifying the information in uploaded filings.

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Appendix 3 – On‐line Premium Filing with My PAA

Filing Coordinator

A central role in the e‐filing process is played by the “filing coordinator,” who is the person designated by the

plan or Plan Sponsor to be responsible for coordinating the plan’s on‐line premium filings. The filing coordinator

for a plan is the one who adds that plan to the account of each other person in the e‐filing team and assigns

each e‐filing team member one or more filing roles, such as the authority to certify a filing (e.g., as the Plan

Administrator). My PAA provides instructions for becoming a plan’s filing coordinator, adding plans, adding

e‐filing team members, assigning roles, etc.

Premium Payment Options  

If you owe a premium, there are several ways to submit payment:

                                 

                            

                               

                                 

                         

     

Recommended: Online Payment at Pay.gov – This is a website from which you can make secure electronic

payments direct to many Federal Agencies, including PBGC. It involves entering information about your plan

(i.e., EIN, plan number, the date the applicable plan year began, information about the account from which

payment will be made) and then authorizing payment. To pay using this option, go to www.pay.gov and

select Pension Benefit Guaranty Corporation from the Agency List, and PBGC’s on‐line Premium Insurance

Payments Form will appear. Please note that if your Pay.gov payment is blocked by your bank, PBGC’s ACH

Company ID is: 1601000603. Transactions on your bank statement will appear as: PBGC Premium Payment.

 Options within My PAA:

–	 Electronic check – This is the electronic equivalent to writing a paper check to PBGC. It involves

entering the check number of a (voided) paper check, your account number, and your bank routing

number.

–	 

                           

                          Automated Clearing House (ACH) – This payment method involves the electronic transfer of funds from

an account that you specify by entering your account number and bank routing number. Please note

that if your ACH payment is blocked by your bank, PBGC’s ACH Company ID is: 1521042410.

These options are not available if you are uploading multiple filings at the same time (i.e., batch

uploads).

  

Additional information about these payment options is available in My PAA.

 Paper Check:

  

You can mail a paper check to our premium lockbox.

  

See the “Premium Payment

Instructions and Addresses” section of www.pbgc.gov for additional information.

 Federal Wire and ACH:

  

You can direct your bank to send us a payment.

  

See the “Premium

Payment Instructions and Addresses” section of www.pbgc.gov for more information.

Other Important My PAA Features

Filing receipts

My PAA gives you a filing receipt. For a filing submitted from My PAA’s data entry and editing screens (including

a filing imported into My PAA), the filing receipt shows the date and time that PBGC received the filing, a

confirmation number, and all of the information submitted in the filing. For an upload, the filing receipt shows

the date and time of receipt by PBGC, a confirmation number, and the name of the uploaded XML file. In

addition, the uploader can view all the information submitted in each uploaded filing.

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Appendix 3 – On‐line Premium Filing with My PAA

Page 54

Account history

A member of a plan’s     e‐filing team may, if authorized     by the     filing coordinator, view the plan’s account history

on‐line through My PAA.     The account history shows     the results    of PBGC’s processing     of your premium     filings and

payments for each plan year.              

Instructions

My PAA provides full filing instructions and help screens. In addition, www.pbgc.gov provides information and

“demos” about how to get started and how to use My PAA. To access the My PAA information, select the

Practitioners Page, and then click on “Online Premium Filing (My PAA).”

For More Information

If you have questions about e‐filing with My PAA, please contact us. See Appendix 2 for information.
             

                                       

                                       

                              

                     

                           

                                     

                                              

                                    

                                      

        

                                 

                           

                   

Appendix 4 — Paperwork Reduction Act Notice

We need this information to determine the amount of premium due to PBGC under Title IV of ERISA. You are

required to give us this information. An agency may not conduct or sponsor, and a person is not required to

respond to, a collection of information unless it displays a currently valid OMB control number.

OMB has approved this collection of information under control number 1212‐0009.

Confidentiality is that provided by the Privacy Act and the Freedom of Information Act.

PBGC estimates that preparation and submission of a premium filing takes 7 hours if UVBs are reported and 31⁄2

hours if they are not. PBGC assumes that most of the work (95 percent) is contracted out at a rate of $350 per

hour. Thus the estimated burden associated with premium filing is about 20 minutes and $2,330 if UVBs are

reported and about 10 minutes and $1,165 if they are not. The actual time will vary depending on the

circumstances of each plan.

If you have comments concerning the accuracy of these burden estimates or suggestions for making the forms

or the electronic filing process simpler, please send your comments to Pension Benefit Guaranty Corporation,

Legislative & Regulatory Department, 1200 K Street, NW, Washington, DC 20005‐4026.

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