Case study: Strategies for reducing PBGC premiums By Steven Hastings | 05 September 2013 The challenge The Pension Benefit Guaranty Corporation (PBGC) is a U.S. government agency established to protect defined benefit (DB) pension plan participants. Sponsors of tax-qualified DB plans are generally required to pay annual insurance premiums to the PBGC. In the event of a covered plan’s failure, the PBGC will assume ongoing payment of pension benefits (subject to statutory limits). While PBGC coverage offers additional security for DB plan participants, the cost of annual premiums is a concern for many plan sponsors. The Moving Ahead for Progress in the 21st Century Act of 2012 (MAP-21) provided near-term funding relief for DB plan sponsors, but it also included PBGC premium hikes. For single

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