Managing PBGC Premiums: There is More Than One Lever
Pension Benefit Guaranty Corp (PBGC) premiums have been getting a lot of press lately, and for many plan sponsors, the minimum funding requirement is no longer the most important number that plan sponsors discuss with their actuaries every year. Instead, plan sponsors have shifted their focus to managing their PBGC premium. As you can see on the chart, by the year 2019, variable rate premiums will be 367 percent higher than they were in 2013. This tremendous increase is driven by multiple law changes this decade.