(a) Flat-rate premium. The flat-rate premium is equal to the number of participants in the plan on the participant count date, multiplied by the applicable flat premium rate determined under paragraph (c) of this section.
(b) Variable-rate premium.
(1) In general. Subject to the limitation in
paragraph (b)(2) of this section, the variable-rate premium is $9 for each $1,000 (or fraction thereof) of a single-employer plan's unfunded vested benefits for the premium payment year, as determined under
§ 4006.4.
(2) Cap on variable-rate premium. If a plan is described in
paragraph (b)(3) of this section for the premium payment year, the variable-rate premium does not exceed $5 multiplied by the square of the number of participants in the plan on the last day of the plan year preceding the premium payment year. For example, if the number of participants in the plan on the last day of the plan year preceding the premium payment year is 20, the variable-rate premium does not exceed $2,000 ($5 × 20
2 = $5 × 400 = $2,000).
(3) Plans eligible for cap. A plan is described in this paragraph (b)(3) for the premium payment year if the aggregate number of employees of all employers in the plan's controlled group on the first day of the premium payment year is 25 or fewer.
(c) Applicable flat premium rate. The applicable flat premium rate is:
(1) For a premium payment year beginning before 2006—
(i) For a single-employer plan, $19, and
(ii) For a multi-employer plan, $2.60.
(2) For a premium payment year beginning in 2006—
(i) For a single-employer plan, $30, and
(ii) For a multi-employer plan, $8.
(3) For a premium payment year beginning after 2006, the greater of—
(i) The applicable flat premium rate for plan years beginning in the calendar year preceding the calendar year in which the premium payment year begins, or
(ii) The adjusted flat rate determined under paragraph (d) of this section for the premium payment year.
(d) Adjusted flat rate. The adjusted flat rate for a premium payment year beginning after 2006 is determined by—
(1) Multiplying the applicable flat premium rate for 2006 by the ratio of—
(i) The national average wage index (as defined in section 209(k)(1) of the Social Security Act) for the first of the two calendar years preceding the calendar year in which the premium payment year begins, to
(ii) The national average wage index (as so defined) for 2004; and
(2) Rounding the result to the nearest multiple of $1 (rounding up any unrounded result that equals some whole number of dollars plus 50 cents).
29 C.F.R. § 4006.3 — Premium rate. · CFR 2013 annual edition (revised as of 2013-07-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4006.3&asof=2008-07-01 · printed Oct 16, 2026