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Pension Resource

29 C.F.R. § 4006.3

Premium rate.
eCFR amendment effective 2023-11-07 · superseded Dec 7, 2023 · last amended by 79 FR 13559, Mar. 11, 2014
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Link to an amendment published at 88 FR 76664, Nov. 7, 2023.
Subject to the provisions of § 4006.5 (dealing with exemptions and special rules) and § 4006.7 (dealing with premiums for certain terminated single-employer plans), the premium paid for basic benefits guaranteed under section 4022(a) or section 4022A(a) of ERISA shall equal the flat-rate premium under paragraph (a) of this section plus, in the case of a single-employer plan, the variable-rate premium under paragraph (b) of this section. Premium rates (and the MAP-21 cap rate referred to in paragraph (b)(2) of this section) are subject to change each year under inflation indexing provisions in section 4006 of ERISA.
(a) Flat-rate premium. The flat-rate premium for a plan is equal to the applicable flat premium rate multiplied by the plan's participant count. The applicable flat premium rate is the amount prescribed for the calendar year in which the premium payment year begins by the applicable provisions of—
(1) ERISA section 4006(a)(3)(A), (F), and (G) for a single-employer plan, or
(2) ERISA section 4006(a)(3)(A), (H), and (J) for a multiemployer plan.
(b) Variable-rate premium
(1) In general. Subject to the cap provisions in paragraphs (b)(2) and (b)(3) of this section, the variable-rate premium for a single-employer plan is equal to a specified dollar amount for each $1,000 (or fraction thereof) of the plan's unfunded vested benefits as determined under § 4006.4 for the UVB valuation year. The specified dollar amount is the applicable variable premium rate prescribed by the applicable provisions of ERISA section 4006(a)(8) for the calendar year in which the premium payment year begins.
(2) MAP-21 cap. The variable-rate premium for a plan is not more than the applicable MAP-21 cap rate multiplied by the plan's participant count. The applicable MAP-21 cap rate is the amount prescribed by the applicable provisions of ERISA section 4006(a)(3)(E)(i)(II), (E)(i)(III), (K), and (L) for the calendar year in which the premium payment year begins.
(3) Small-employer cap.
(i) In general. If a plan is described in paragraph (b)(3)(ii) of this section for the premium payment year, the variable-rate premium is not more than $5 multiplied by the square of the participant count. For example, if the participant count is 20, the variable-rate premium is not more than $2,000 ($5 × 20 2 = $5 × 400 = $2,000).
(ii) Plans eligible for cap. A plan is described in paragraph (b)(3)(ii) of this section 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.
(iii) Meaning of “employee.” For purposes of paragraph (b)(3)(ii) of this section, the aggregate number of employees is determined in the same manner as under section 410(b)(1) of the Code, taking into account the provisions of section 414(m) and (n) of the Code, but without regard to section 410(b)(3), (4), and (5) of the Code.
Source credit, amendments & notes

[61 FR 34016, July 1, 1996, as amended at 72 FR 71228, Dec. 17, 2007; 73 FR 15074, Mar. 21, 2008; 79 FR 13559, Mar. 11, 2014]

29 C.F.R. § 4006.3 — Premium rate. · eCFR amendment effective 2023-11-07 · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4006.3&asof=2023-11-07 · printed Oct 16, 2026
On this page
  • (a) Flat-rate premium.
  • (b) Variable-rate premium
Implements
ERISA § 4006 (29 U.S.C. § 1306) Premium rates
Cited by (code & regs)
Guidance addressing this section

No documents are primarily about this section.

Also cited in 8 other documents
PBGC
Final Rules
  • 90 FR 39320 Aug 15, 2025 — Miscellaneous Corrections, Clarifications, and Improvements (a)
  • 88 FR 76660 Nov 7, 2023 — Technical Amendments: Special Financial Assistance Withdrawal Liability Condition; SECURE 2.0 Act; and Other Updates (a)
  • 85 FR 6046 Feb 4, 2020 — Miscellaneous Corrections, Clarifications, and Improvements (b)
  • 79 FR 13547 Mar 11, 2014 — Premium Rates; Payment of Premiums; Reducing Regulatory Burden
  • 79 FR 347 Jan 3, 2014 — Payment of Premiums; Large-Plan Flat-Rate Premium (b)
Proposed Rules
  • 90 FR 6894Proposed Jan 21, 2025 — Miscellaneous Corrections, Clarifications, and Improvements Comments due Mar 24, 2025 (a)
  • 84 FR 30666Proposed Jun 27, 2019 — Miscellaneous Corrections, Clarifications, and Improvements Comments due Aug 26, 2019 (b)
  • 78 FR 44056Proposed Jul 23, 2013 — Premium Rates; Payment of Premiums; Reducing Regulatory Burden Comments due Sep 23, 2013

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Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Jul 1, 1997Jun 30, 2008CFR 2007 annual edition (revised as of 2007-07-01) run 127View
Jul 1, 2008Jun 30, 2014CFR 2013 annual edition (revised as of 2013-07-01) run 12773 FR 15074, Mar. 21, 2008View · Redline (sign in)
Jul 1, 2014Nov 6, 2023eCFR editorial change effective 2017-01-01 run 2679 FR 13559, Mar. 11, 2014View · Redline (sign in)
Nov 7, 2023Dec 6, 2023eCFR amendment effective 2023-11-07 run 2679 FR 13559, Mar. 11, 2014View · Redline (sign in)
Dec 7, 2023currenteCFR editorial change effective 2023-12-07 run 288 FR 76664, Nov. 7, 2023View · Redline (sign in)
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