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Reducing PBGC Premiums in 2023: The Significance of the Standard/Alternative Method Election
October Three Consulting 
Mar. 8, 2023 "[T]his year, for many plans, the amount of PBGC premiums the plan will owe will depend more on whether the plan is able to use the standard (spot-rate) method, rather than the alternative (24-month average) method, to value PBGC 'unfunded vested benefit' liabilities.... This [article's] analysis is for sponsors of DB plans that [1] are not fully funded and [2] are not at the PBGC variable-rate premium headcount cap." |
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