PBGC Premium due date

[Effen]

What is the due date for PBGC premiums for a multi-employer plan? We generally do prepare the filings for our multiemployers since they don't require an actuarial certification, but one of our clients asked us to prepare the premium forms. Page 8 of the instructions states that "For mulitemployer plans... the entire premium is due by the First Filing Due Date".

Does that mean that there is no room for estimates using an ES-1? The plans generally don't have the census data for two months, are they expected to have a final participant count in 2 months?

How do others handle this?

[JanetM]

Pulled this from PBGC istructions:

Due dates for first time filers

New and newly covered plans do not pay an estimated premium by a First Filing Due Date.

For a plan filing for the first time, the “Final Filing Due Date” is the latest of the following dates:

The 15th day of the 10th full calendar month that begins on or after the first day of the premium payment year,

The 15th day of the 10th full calendar month that begins on or after the day on which the plan became effective for benefit accruals for future service,

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

90 days after the date on which the plan became covered under ERISA section 4021.

If the adoption date of a newly created plan covered under section 4021 of ERISA is after its effective date (i.e., the plan is adopted retroactively), the first day of the premium payment year that you use for purposes above must also be used as the premium snapshot date.

[Effen]

Thank you Janet, but my question really had to do with Page 8 of the instruction booklet related specifically to multiemployer plans. It seems to imply that there is no room for an estimated premium. It seems to say that the total premium is due on the first filing date, which seems incredibly unreasonable.

Since I'm sure many others have been dealing with this issue, I was wondering when/how other multiemployers are filings their PBGC premiums.

[JanetM]

I see the first year instructions to override the instructions you site allowing the amount to be paid by the final filing date.

[Effen]

Its not the first year of the plan. How do the "first year" instructions help me?

[Guest Dell]

The 1-ES is due by the first filing date with full payment based on estimated participant counts. This date is the end of the second month of the plan year (due 8/31/06 for year beginning 7/01/06). The PBGC-1 is due by the final filing date (15th day of the tenth month) with the actual numbers, which may result in an overpayment or an amount due.

All fixed premiums are due with the 1-ES, only variable premiums are not fully due at that time. Since multiemployers do not have the variable rates, everything is due at the first filing date, and that is what the instructions that you quoted are referring to. That does not mean that estimates cannot be used on the 1-ES.