PBGC Eliminates Paper Checks for Premium Payments: What You Need to Know
The Pension Benefit Guaranty Corporation (PBGC) has announced that paper checks will no longer be accepted for annual premium payments. This change aligns with the federal government’s initiative to modernize payment systems and transition to secure electronic methods. The goal is to streamline transactions, reduce processing delays, and enhance security for plan sponsors.
What Does This Mean for Your Plan?
Effective immediately, all PBGC premium payments must be made electronically. If your organization previously relied on vouchers to pay your premium via paper check, you will need to adopt one of the approved electronic payment methods to ensure compliance and avoid delays or penalties.
Available Payment Options
- Pay Within My PAA (ACH Debit): Submit payment directly through PBGC’s online filing system, My Plan Administration Account (My PAA). PBGC will “pull” funds from your designated bank account after you authorize the transaction during the filing process.
- Pay.gov (ACH Debit): A fast, secure, and free option for premium payers. Payments are processed through the U.S. Treasury’s Pay.gov platform. Ideal for organizations that want to initiate the payment separate from the PBGC filing process but still want PBGC to “pull” funds from their designated bank account.
- Electronic Funds Transfer (EFT): Includes ACH and Fedwire transfers. Requires specific banking details and transaction codes provided by PBGC. Ideal for organizations that prefer initiating payments through their own banking systems.
Next Steps
- Review your current payment process and transition to one of the approved electronic methods if you previously paid your premium using a voucher and paper check.
- Discuss options with your FuturePlan consultant.
- Access PBGC’s Payment Instructions for detailed guidance and step-by-step instructions. https://www.pbgc.gov/employers-practitioners/premium-filings/payment-instructions
Please reach out to your FuturePlan consultant with any questions. You can also contact PBGC’s Premium Customer Service Center at premiums@pbgc.gov or call 1-800-400-7242 for direct assistance from PBGC.