New law hikes PBGC premiums for single-employer pension plans

CAB 13-10: Congress has approved and sent to the President a federal budget agreement that includes an increase in the annual premiums that sponsors of single-employer defined benefit plans pay to the Pension Benefit Guaranty Corporation (PBGC) to insure the plans in the event of a plan termination. The budget agreement, which the President will sign, includes no changes to the PBGC premiums for multiemployer pension plans. The budget accord’s PBGC provisions are effective for plan years beginning after Dec. 31, 2013.