The Pension Benefit Guaranty Corporation has released a proposed regulation that would set a uniform due date for all PBGC premiums.  Under current rules, the premium due date depends on the size of the plan and the type of premium.  For example, large calendar-year plans are required to pay fixed-rate premiums on February 28 and variable-rate premiums on October 15 of the premium year.  The proposed rule would apply the October 15 date to all premiums for calendar year plans of any size, to match the extended due date for annual reports on Form 5500. 

The proposed change would accelerate the premium due date for small plans, which currently pay premiums four months after the end of the premium year.  To help small plans meet this deadline, the proposed regulation would allow these plans to use prior-year funding data to determine variable-rate premiums.  The proposed regulation also would change the premium due dates for new plans and terminating plans.

The regulation proposes to simplify the penalty structure for late premiums paid by plans of any size and to reduce the penalty cap for plan sponsors that self-correct.  The proposed regulation also would clarify the rules for calculating the premium funding target for plans in “at-risk” status.