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Posted

Sponsor wants to pay the PBGC premiums directly from plan assets however, 2026 instructions are specific on no paper check.

Has anyone dealt with a situation like this and if yes, what was the solution?

Not sure if the plan can transfer the premium to the sponsor and the sponsor can then pay PBGC.

QKA, QKC, QPA, CBS - I used to be indecisive about pensions but now I am not so sure

Posted

First, make sure the plan's language supports (or doesn't prohibit) payment of these expenses, or reimbursing the employer for such. If supported (or not prohibited), I would have employer pay first, electronically as required, and then submit its receipt to the plan's trustee for reimbursement. 

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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