Navigating a Benefit Suspension Application Under MPRA

Applying for a suspension under the Multiemployer Pension Reform Act (MPRA) is a lengthy and complicated process. This article describes the steps one pension fund went through to apply for benefit suspensions.

Michael Reilly, ASA, published this article in the May 2019 issue of Benefits Magazine.

PBGC Premium Rates for 2014

The Pension Benefit Guarantee Corporation announced the 2014 premium rates. The per-participant flat premium rate for plan years beginning in 2014 is $49 for single-employer plans (up from a 2013 rate of $42) and $12 for multiemployer plans (no change from 2013).

For plan years beginning in 2014, the variable-rate premium for single-employer plans is $14 per $1,000 of unfunded vested benefits (UVBs), up from a 2013 rate of $9. This $5 increase is the result of indexing and a scheduled $4 increase provided in MAP-21. The variable-rate premium is capped at $412 times the number of participants (up from a 2013 cap of $400). Plans sponsored by small employers (generally fewer than 25 employees) may be subject to an even lower cap. Multiemployer plans do not pay a variable-rate premium.