1099R tax forms for benefits paid in 2020 will be available for downloading and printing from MyPBA beginning February 2, 2021. The Pension Benefit Guaranty Corporation (PBGC) published a final rule (Final Rule) on September 9 providing that effective January 1, 2021, it will use the interest and mortality assumptions under Internal Revenue Code (Code) Section 417(e)(3) when determining de minimis lump sum benefits for single-employer defined benefit … Pension Benefit Guaranty Corporation . PBGC Premiums and Guaranteed Benefits. On February 4, 2020, the Pension Benefit Guaranty Corporation (“PBGC”) issued final regulations (the “Final Rule”) covering reportable events, annual reporting under ERISA section 4010, plan termination filings, and PBGC premiums. As of November 2020, the PBGC insured defined-benefit pension plans covering approximately 35 million people. However, PBGC cannot guarantee delivery on the first of the month. Social Security benefits payable in 2020 will increase by 1.6%, the Social Security Administration (SSA) announced Oct. 10 in updates that include the 2020 taxable wage base and the 2018 national average wage.PBGC likewise has released inflation-indexed premium amounts for next year, and Mercer has estimated the maximum guaranteed benefit for 2020. MEMORANDUM TO THE BOARD OF DIRECTORS . On Oct. 11, PBGC announced inflation-adjusted 2020 premium rates and the variable-rate premium cap. The guarantee limit for multiemployer plans is very different. PBGC: Proposed Rule Stage: Valuation Assumptions and Methods: Interest and Mortality Assumptions for Asset Allocation in Single-Employer Plans and Mass Withdrawal Liability Determination in Multiemployer Plans : 1212-AA55: PBGC: Proposed Rule Stage: Multiemployer Plan Guaranteed Benefits : 1212-AB37: PBGC: Proposed Rule Stage Pension Benefit Guaranty Corporation’s Fiscal Year 2019 Compliance with the Federal Information Security Modernization Act of 2014 Report No. There are also negotiated protections … PBGC must act to terminate a plan that cannot pay current benefits. Most workers in single-employer plans taken over by PBGC and multiemployer plans that receive financial assistance from PBGC receive the full pension benefit that they earned.5 However, among participants in multiemployer plans that were … Including those who have not yet retired and participants in multiemployer plans receiving financial assistance, PBGC is responsible for the current and future pensions of about 1.5 million people. We see that you have visited MyPBA before, would you like to be directed to this site, Beneficiaries / Report Death of a Participant, Qualified Domestic Relations Orders and PBGC, State Life and Health Insurance Guaranty Association Offices, Missing Participants (Standard/Distress Terminations only), Federal Register Notices Open for Comment, ERISA Section 4044 Retirement Assumptions, Reportable Events & Large Unpaid Contributions, Staff Responses to Practitioner Questions about Guaranteed Benefits, Pension benefits at normal retirement age, Annuity benefits for survivors of plan participants, Disability benefits (see exception below), Lump-sum death benefits for a death that occurs after the date the plan ended, Disability benefits for a disability that occurs after the plan’s termination date (or the date your employer’s bankruptcy proceeding began, if applicable). The Pension Benefit Guaranty Corporation’s (PBGC) webpage has been updated to provide the 2020 premium rates for single-employer and multiemployer defined benefit (DB) plans. Join the conversation and connect via the icons below. For example, the PBGC limits its guarantee based on the age of the participant and whether the participant is a majority owner. This section applies only to single-employer plans. For more information, see “. The Pension Benefit Guaranty Corporation (PGBC) is a wholly owned government corporation that insures private pension benefits under separate programs for single-employer and multiemployer plans.