Loren D. Stark Company
EPIC Retirement Plan Services
Randall & Hurley, Inc.
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|Funding Relief + Higher PBGC Premiums: A Lethal Mix|
Dec. 10, 2015
"Many view the extension of funding relief as a good thing since it gives companies more flexibility to fund their plan at their own pace.... [T]he ticking time bomb is the PBGC variable rate premiums.... The longer a company waits to fund up their plan, the more premiums the PBGC collects, to the point where as much as 25-30% of cumulative contributions are paid to cover PBGC premiums rather than to fund the plan ... There is now even more incentive for sponsors to fund up their plans earlier to avoid this cost, using either cash or by borrowing."
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