Pension Benefit Guaranty Corporation:
Payment of Premiums
OGC-99-24: Published: Dec 28, 1998. Publicly Released: Dec 28, 1998.
Pursuant to a legislative requirement, GAO reviewed the Pension Benefit Guaranty Corporation's (PBGC) new rule on payment of premiums. GAO noted that: (1) the rule would extend the time for final premium filings for calendar year plans and for non-calendar year plans that begin on the first day of the month by 1 month; (2) plans with plan years beginning on a day other than the first day of the month get a 2-month extension from the due date under the prior rule; (3) according to the PBGC, the purpose of the change is to coordinate the filing with the filing of PBGC's form 5500 to avoid the confusion and administrative burden associated with non-coordinated filing dates; (4) the filing change will shift an estimated $350 million in premium payments from the end of the government's fiscal year 1999 to the beginning of fiscal year 2000; and (5) PBGC complied with the applicable requirements in promulgating the rule.