PBGC Premium Cap

[Guest Deflector]

To determine if a PBGC plan can use the Variable Rate Premium Cap, the PBGC says it is "the aggregate number of employees ... as under section 410(b)(1) ..., without regard to section 410(b)(3),(4), and (5)..."

If I have a plan that has 10 non union employees and 30 union (with a collective bargain agreement), I would take that to mean that I have to ignore 410(b)(3), which lets me exclude union CBA, and the double negative would mean that I have to count the CBA and will have 40 ees and I am not eligible for the Cap.

Is this correct? Has anyone heard that you can exclude Union CBA to count whether you are eligible for the cap?

[zimbo]

Unfortunately you are correct. You basically count ALL the employees of the employer to determine eligibility for the premium cap.

In your case, the plan is NOT eligible.