A Premium Filer is the person or entity responsible for submitting PBGC premium filings and payments for a PBGC-insured pension plan.
A Premium Filer is someone who handles the required premium filings and payments to the Pension Benefit Guaranty Corporation (PBGC) for pension plans covered by PBGC insurance. This role may be filled by a plan administrator, plan sponsor, or a professional pension practitioner who manages compliance tasks on behalf of a retirement plan. Understanding what a Premium Filer does is important for anyone involved in pension plan administration, because failing to meet PBGC requirements can lead to penalties and compliance issues.
What Is a Premium Filer?
In simple terms, a Premium Filer is the individual or organization responsible for making sure a PBGC-insured defined benefit pension plan pays its annual PBGC premiums on time. PBGC premiums help fund the federal agency that protects pension benefits if a plan becomes unable to meet its obligations.
A Premium Filer may be:
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The plan administrator, who oversees day-to-day pension plan operations
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The plan sponsor, typically the employer that establishes the pension plan
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A pension practitioner, such as a benefits consultant, actuary, or third-party administrator hired to manage PBGC filings
No matter who performs the role, their primary responsibility is clear: make accurate, timely premium submissions through the PBGC’s online filing system (My PAA).
What Does a Premium Filer Actually Do?
Premium Filers ensure full compliance with PBGC premium requirements. Their work typically includes:
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Calculating annual PBGC premiums, including
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Flat-rate premiums for all covered plans
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Variable-rate premiums for underfunded plans
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Submitting filings via the PBGC’s My Plan Administration Account (My PAA)
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Coordinating payments, whether electronically or through approved payment methods
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Ensuring deadlines are met to avoid late charges
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Correcting filing errors and responding to PBGC notices
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Maintaining plan records related to premiums, funding levels, and actuarial data
Because PBGC regulations can be complex, Premium Filers must understand both plan funding rules and PBGC guarantee requirements.
Why the Premium Filer Role Matters
The PBGC charges penalties when filings are late, incomplete, or inaccurate. These penalties can grow quickly, especially for large plans. A knowledgeable Premium Filer helps the plan:
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Stay compliant with federal regulations
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Avoid interest and penalties
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Maintain accurate funding information
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Ensure that PBGC coverage remains secure for participants
In short, the Premium Filer plays a crucial role in protecting retirement benefits by keeping the plan in good standing with PBGC requirements.
Real-Life Example
Imagine a mid-size manufacturing company with a defined benefit pension plan. The employer (plan sponsor) designates the plan administrator as its Premium Filer. Each year, the administrator:
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Works with the plan actuary to determine the plan’s funding status
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Calculates the flat-rate and variable-rate premiums
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Submits the filing through My PAA
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Arranges payment before the due date
If the plan becomes underfunded, the Premium Filer must update the PBGC calculations and ensure the higher premium amount is paid correctly. Without accurate work, the plan could face steep penalties.
Summary
A Premium Filer is the person or professional responsible for submitting PBGC premium filings and payments for PBGC-insured pension plans. By handling premium calculations, deadlines, and compliance tasks, the Premium Filer ensures the plan stays protected under PBGC rules and avoids unnecessary penalties. Understanding this role helps employers, administrators, and pension professionals keep their plans running smoothly and in full compliance.
