We are enclosing the forms and instructions for your premium payments to the Pension Benefit Guaranty Corporation for the 2005 plan year. You may file using these forms, or you may file electronically through PBGC's website. Electronic filing saves time and reduces the risk of errors. PBGC plans to require electronic filing of premiums, beginning with large plans in 2006. PBGC will provide guidance to filers in advance of that change.

PBGC's electronic filing system, called My Plan Administration Account (My PAA), enables you to exchange information with your service providers, notify each other of the next required action, track progress, file and pay, and receive payment confirmation from PBGC, all electronically. You will find detailed information about using My PAA on pages 43-46 of this Premium Payment Package. We invite you to try My PAA. On our home page, www.pbgc.gov, click on: Online Premium Filing (My PAA).

The required interest rate for the variable-rate premium for the 2005 year is again 85 percent of the annual rate of interest determined by the Secretary of the Treasury on amounts invested conservatively in long-term investment grade corporate bonds for the month preceding the beginning of the plan year for which premiums are being paid. The interest rates are on our website at www.pbgc.gov/plan_admin/interest.htm.

We have made a few changes for this year. The enrolled actuary's certification has been shortened and simplified but remains the same in substance. We have added a check box for you to notify us of participation in the PBGC's Participant Notice Voluntary Correction Program (VCP). We have added reporting of the first six digits of the plan sponsor's Committee on Uniform Securities Identification Procedures (CUSIP) number (if any) to help us identify controlled groups related to plan sponsors. See "What's New" on p. 1 of the instructions for more details on changes.

We continue to look for ways to help you, and your suggestions are always welcome. In addition, PBGC's website contains information that you may find useful, including current and prior premium filing booklets, frequently asked questions, interest rates, information on disaster relief, and regulations.

For all premium-related inquiries, please call our toll-free practitioner number, 1-800-736-2444, and select the "premium" option. If you have a complaint about the service you have received or still need assistance after calling our practitioner number, please contact our Problem Resolution Officer at 1-800-736-2444, ext. 4136 (202-326-4136 for local calls) or by e-mail at practitioner.pro@pbgc.gov.

1. PBGC's website, www.pbgc.gov, contains pension plan information of interest to the plan administrator and practitioner, such as online premium filing, current and prior premium filing booklets, frequently asked questions, interest rates, regulations, etc.
2. Where to send premium filings (including amended filings)
   1. If you mail your premium forms, address them to: Pension Benefit Guaranty Corporation

      Dept. 77430
      P.O. Box 77000
      Detroit, MI 48277-0430

   2. If you send your premium forms by delivery service, address them to:

      Pension Benefit Guaranty Corporation
      Bank One
      9000 Haggerty Road
      Dept. 77430
      Mail Code MI1-8244
      Belleville, MI 48111

   3. If you pay by check, write the plan's EIN/PN and the date the premium payment year commenced (PYC) on the check and send the check with your form.
   4. If you pay by electronic funds transfer, send the Payment to:

      Bank One, NA
      Chicago, IL
      ABA: 071000013
      Account: 656510666
      Beneficiary: PBGC
      Reference: (give plan's EIN/PN and the date the
      premium payment year commenced (PYC) in
      the format "EIN/PN: XX-XXXXXXX/XXX
      PYC: MM/DD/YY")

3. For all premium-related correspondence other than premium filings, including premium filing questions (for online or paper filings), requests for booklets or forms, address changes, requests for refunds (that are not submitted on premium filing forms), and requests for reconsideration of premium penalty assessments
   1. If you mail your correspondence, address it to:

      Pension Benefit Guaranty Corporation
      Dept. 77840
      P.O. Box 77000
      Detroit, MI 48277-084

   2. If you send your correspondence by delivery service, address it to the same address as in 2.b. above.
   3. Or call us at: 1-800-736-2444 or (202) 326-4242
   4. Or fax us at: (202) 326-4250
   5. Or e-mail us at: premiums@pbgc.gov
      
4. For current interest rate information:

   Call: (202) 326-4041
   Internet: www.pbgc.gov
   or write to:
   	Pension Benefit Guaranty Corporation
   	CPAD, Suite 240
   	1200 K Street, NW
   	Washington, DC 20005-4026
   	

5. For assistance on coverage determination or plan termination:

   Call: 1-800-736-2444
   (202) 326-4242
   E-mail: standard@pbgc.gov
   or write to:
   	Pension Benefit Guaranty Corporation
   	IOD/Technical Assistance Branch, Suite 930
   	1200 K Street, NW
   	Washington, DC 20005-4026

6. If you have a complaint about the service you have received or still need assistance after calling our practitioner telephone numbers listed in items 3 and 5 (1-800-736-2444 or (202) 326-4242), please contact the Problem Resolution Officer (Practitioners):

   Call: 1-800-736-2444, ext. 4136
   (202) 326-4136
   E-mail: practitioner.pro@pbgc.gov
   or write to:
   	Pension Benefit Guaranty Corporation
   	Problem Resolution Officer (Practitioners), Suite 610
   	1200 K Street, NW
   	Washington, DC 20005-4026
   

7. For assistance with Participant Notice questions:

   Call: (202) 326-4161
   E-Mail: pnotice@pbgc.gov
   

8. For questions regarding our Premium Compliance Evaluation Program:

   Call: (202) 326-4161, ext. 6309
   E-Mail: pce@pbgc.gov
   

9. Any vendor requesting approval of automated forms may send a sample (including 3 original forms) to:

   Pension Benefit Guaranty Corporation
   Vendor Forms Review Office, FOD/CCD, Suite 670
   1200 K Street, NW
   Washington, DC 20005-4026
   

Note(s)

• TTY/TDD users may call the Federal relay service toll-free at 1-800-877-8339 and ask to be connected to any telephone number in this booklet.
• We cannot accept collect calls.

What is Our Mission?

The Pension Benefit Guaranty Corporation (PBGC) encourages a stable, adequately funded system of private pension plans and provides responsive, timely, and accurate services to plan sponsors, participants in insured plans, and pension practitioners.

Who Are Our Customers and What Services Do We Provide?

As a plan administrator of a pension plan that pays premiums to PBGC, you are one of PBGC's principal customers. In administering the premium collection program, we:

• Collect premiums from covered plans;
• Issue annual premium forms and instructions packages;
• Answer questions from plan administrators, sponsors, and practitioners about premium payments;
• Process premium-related requests, including requests for refunds and administrative changes;
• Issue past due filing notices and statements of account (premium invoices), as appropriate;
• Make decisions on requests for reconsideration of agency determinations in the premium administration area.

Of course, our dealings with plan administrators, plan sponsors, and pension practitioners go beyond premium collections. Should a defined benefit pension plan terminate, as either a standard or a distress termination, you have dealings with the PBGC to bring the case to closure

Our Service Pledge

• On the first call from you, our customer, we will say

  -- what we can do immediately and what will take longer,
  -- when it will be done, and
  -- who will handle your request.
  

• We will call you if anything changes from what we first said, give you a status report and explain what will happen next.
• We will have staff available from 8:00a.m.-5:00p.m. Eastern Time to answer your calls. If you leave a message, we will return the call within one workday.
• We will acknowledge your letter within one week of receipt

Survey Results and Service Improvement Efforts

The most recent customer satisfaction surveys of pension professionals tell us we've improved our forms and instructions, and filing premium forms is fairly easy to do, but receiving refunds still takes too long. We learned that we can best improve customer satisfaction by focusing on premium statements of account (premium invoices), specifically, getting these to our customers timelier, making the statements themselves clearer, and providing prompter responses to inquiries. We are developing a new premium accounting system that we expect to support these efforts. We have also launched an electronic premium filing system called My Plan Administration Account (My PAA), which is accessible through PBGC's website (www.pbgc.gov). It is our hope that online filing will provide greater convenience to our customers, and we look forward to expanding online services in the future.

Since almost half of all pension plans have an October 15 premium filing deadline, PBGC experiences its peak premium processing season in October through December. Refunds requested during this period will take longer to process due to the increased number of filings received. We continue to seek ways to make our processes more responsive to the needs of the practitioner community.

If you have any questions or complaints, please contact us by telephone, fax, or e-mail at one of the numbers or addresses listed on page ii.

We need this information to determine the amount of premium due to the PBGC under Title IV of ERISA and to monitor single-employer plans' compliance with the Participant Notice requirement in ERISA section 4011 and 29 CFR Part 4011. You are required to give us this information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. OMB has approved this collection of information under control number 1212-0009. Confidentiality is that supplied by the Privacy Act and the Freedom of Information Act.

The estimated burden associated with completing and filing Form 1-EZ or Form 1 (and, for single-employer plans that are not exempt from the variable-rate premium, Schedule A) is shown below. The burden estimates are expressed in hours (for filings done in-house) and in dollar cost (for filings contracted out). (The PBGC assumes that 95% of the burden is contracted out.) The burden estimates are averages for the plans in each of the listed categories. These times will vary depending on the circumstances of a given plan.

If you have comments concerning the accuracy of these burden estimates or suggestions for making the forms simpler, please send your comments to Pension Benefit Guaranty Corporation, Office of the General Counsel, Suite 340, 1200 K Street, NW, Washington, DC 20005-4026.

Reminder to Single-Employer Plans About Reportable Events

• 20% reduction in active participants
• Failure to make minimum funding payments
• Inability to pay benefits when due
• Excess distributions to a substantial owner within a
• 12-month period
• Transfer of 3% or more of benefit liabilities outside the controlled group
• Application for minimum funding waiver
• Transaction involving a change in contributing sponsor or controlled group
• Liquidation or dissolution of a contributing sponsor or a controlled group member
• Declaration of an extraordinary dividend or stock redemption
• Loan default
• Bankruptcy, insolvency, or similar settlements with creditors

In most cases, notice is required within 30 days after the plan administrator or contributing sponsor knows or has reason to know that an event has occurred. In certain cases involving privately-held companies or controlled groups whose pension plans have aggregate unfunded vested benefits of more than $50 million, the contributing sponsor (but not the plan administrator) must notify the PBGC 30 days before the effective date of certain events. See section 4043 of ERISA and PBGC's regulation on Reportable E vents and Certain Other Notification Requirements (29 CFR Part 4043). (From time to time, we also publish technical guidance on our website, www.pbgc.gov (under "Legal Information & FOIA" " "Laws & Regulations" " "Technical Updates") about rep ortable events filing obligations.) Failure to give PBGC timely notice may result in assessment of penalties under section 4071 of ERISA.

Note(s)

• Small plans are not exempt from the reportable events rules, although there are waivers and other special rules for small plans in some cases.
• The PBGC provides Form 10 and Form 10-ADV for notifying PBGC of reportable events. These forms are available on the PBGC's website (www.pbgc.gov) and can be downloaded.

The plan administrator of a single-employer plan may be required to issue a Participant Notice for the 2005 plan year " informing participants about the plan's funding status and the limits on the PBGC's guarantee of benefits " if a variable-rate premium (VRP) is payable for the 2005 plan year. The PBGC will issue a Technical Update in mid-2005 describing the requirements for the 2005 Participant Notice and reflecting any legislative changes for 2005.

The premium forms for the 2006 plan year (the next plan year) will include a certification about the Participant Notice for the 2005 plan year (this plan year). (This plan year's premium forms include a certification about the Participant Notice for the 2004 plan year.)

The 2005 Participant Notice is due two months after the due date for the 2004 Form 5500 series, including extensions. Thus, the 2005 Participant Notice is due during the 2005 plan year. For calendar year plans, the 2005 Participant Notice must be given by October 3, 2005, if the 2004 Form 5500 due date is August 1, 2005; by November 15, 2005, if the 2004 Form 5500 due date is September 15, 2005; or by December 19, 2005, if the 2004 Form 5500 due date is October 17, 2005. (Due dates that fall on a weekend or Federal holiday are extended to the next business day.)

EXEMPTIONS: A plan that meets the Deficit Reduction Contribution (DRC) Exception Test for the 2004 plan year or for the 2005 plan year is exempt from having to provide a Participant Notice for the 2005 plan year. Most new and newly-covered plans are also exempt from the Participant Notice requirement.

For more information about the Participant Notice requirement, including information about the DRC Exception Test, see section 4011 of ERISA, the PBGC's regulation on Disclosure to Participants (29 CFR Part 4011), and the PBGC's Technical Update on the 2005 Participant Notice (to be issued in mid-2005). The Technical Update will include a worksheet to help plan administrators determine whether they must issue the 2005 Participant Notice. Further information related to Participant Notice requirements is available on the PBGC's website at www.pbgc.gov/participantnotice.

Although there are special rules regarding Participant Notices for small plans, small plans are not exempt from the Participant Notice requirements.

The best way to ensure accurate and timely filings is to submit your premium filing online using the My Plan Administration Account (My PAA) section of the PBGC's website. The instructions for e-filing your premiums are included in this booklet (see p. 43).

If you are making a paper filing, please:

1. Submit Only One Payment with One Filing. Do NOT combine the premiums for two or more plans into one payment.
2. Include EIN/PN and PYC on all Payments and Correspondence.
3. Send Premium Filings Only to the Premium Filing Addresses in item 2. under CONTACTS, p. ii.
4. Send Other Correspondence to the Correspondence Addresses in item 3. under CONTACTS, p. ii.
5. Notify PBGC of EIN/PN Changes. EIN/PN changes should be reported on your premium form, which includes space for this information.

Additional Tips

If you make an amended premium filing that shows an overpayment of more than $500, attach a statement explaining the specific circumstances or events that caused the overpayment and made the amended filing necessary. See B.6.d., p. 15, for more information.

When providing refund payment instructions, please keep in mind that not all banks accept Automated Clearing H ouse (ACH) or electronic funds transfers.

If you are filing for a large plan, remember that an overpayment claimed as a credit on line 7 of Form 1-ES must also be claimed on line 15(b) of your final filing.

Remember that your premium forms must be signed and dated. Failure to sign and date your filing can delay processing of your filing (including any refund that may be due). Processing can also be delayed if you fail to submit a separate payment for each plan. Please do not combine payments for two or more plans in one check or electronic funds transfer.

We also remind you not to place correspondence in the envelope with your premium forms. The forms are processed electronically, and correspondence placed in the same envelope may be significantly delayed in reaching its intended destination. Use the address in item 3. under "CONTACTS," p. ii, to send us correspondence other than your premium filing.

The plan administrator and enrolled actuary certifications have been revised.

• On Form 1-EZ and Schedule A, the information about compliance with Participant Notice requirements for the prior plan year has been moved out of the plan administrator's certification block and made into a separate item.
• Similarly, the significant events information has been moved out of the enrolled actuary's certification block on Schedule A and made into a separate item in the unfunded vested benefits section of Schedule A.
• On Schedule A, we have eliminated the two check boxes with which the enrolled actuary was required to indicate use of special procedures under the general rule method of computing the variable-rate premium.
• The certification language on all the forms has been shortened and simplified (with no change in substance).

For 2005 only, we have added a check box to the Participant Notice information item for you to use to notify the PBGC of the plan's participation in the PBGC's Participant Notice Voluntary Correction Program (VCP) announced in the Federal Register May 7, 2004 (at 69 FR 25792).

If a CUSIP number has been assigned for the plan sponsor, we now require that the first 6 digits of that number be reported. See the instructions for item 8 of Form 1-EZ and Form 1 on pp. 21 and 28.

We will no longer automatically apply an overpayment of a plan's current premium to amounts of premium, interest, and penalty owed for the plan with respect to prior plan years. If you overpay the premium for the current plan year, you will be able to elect either to receive a refund or to have the overpayment applied against the plan's premium for the next plan year. You'll find further details in the instructions (B.7.b., Overpayments, p. 17; also see the instructions for item 17 of the Form 1-EZ and Form 1 on pp. 25 and 30).

We have added instructions to the item on change in plan year starting date for plans filing for the second year that have a different plan year starting date for the second year only because the first year was a short year. See the instructions for item 11(d) on Form 1-EZ (p. 22) and item 12(d) on Form 1 (p. 29).

We have changed the Schedule A instructions that are used by large single-employer plans that calculate the variable-rate premium using the Alternative Calculation Method (ACM) to make clear that significant events adjustments may be offset by "negative" unfunded vested benefits from the Form 5500, Schedule B. See the Item 5 Procedure, p. 39.

We have changed the wording of item 12(d) on Form 1-EZ and item 1(c) on Schedule A to conform with the instructions. Certain filers use these items to report the proposed termination date in a standard termination (on Form 1-EZ) or a distress or involuntary termination (on Schedule A).

This 2005 Premium Payment Package reflects changes brought about by the Pension Funding Equity Act of 2004 (PFEA), which was signed into law by the President on April 10, 2004. (The changes were also reflected in the 2004-R Premium Payment Package, which the PBGC distributed shortly after PFEA was enacted, for 2004 plan year premium filings.) PFEA changes the rules for determining the Required Interest Rate for a premium payment year beginning in 2004 or 2005. Under PFEA, for a premium payment year beginning in 2004 or 2005, the Required Interest Rate is 85 percent of the annual rate of interest determined by the Secretary of the Treasury on amounts invested conservatively in long-term investmentgrade corporate bonds for the month preceding the beginning of the plan year for which premiums are being paid. The definition of "Required Interest Rate" in this 2005 instruction booklet (A.7., p. 5) reflects this provision.

In 2004, we launched an electronic premium filing system called My Plan Administration Account (My PAA). My PAA enables practitioners to electronically create, sign, and submit premium filings and payments to PBGC for plan years beginning in 2004 or later years. E-filing has many advantages over paper submissions, including improved data accuracy, easier filing preparation, shared electronic access to filings (which eliminates manual routing and mailing), e-mail notification of required actions, and confirmation that the filing and payment were received by PBGC. Please see Part G, p. 43, for more information about how to e-file premiums for 2005. For additional details or to set up an account within My PAA, please access PBGC's website (www.pbgc.gov/mypaa) and click on the link labeled "New Users Click Here for More Information and Sign Up."

In October 2003, we changed the rules for filing with us. See "When to File" (B.2.e., p. 10) for more information. Under the new rules, your filing date will generally be the date you send your filing.

PBGC premium forms (both paper and on-line forms) are used to pay premiums to the Pension Benefit Guaranty Corporation (PBGC) as required by sections 4006 and 4007 of the Employee Retirement Income Security Act, as amended (ERISA), and the PBGC's premium regulations (29 CFR Parts 4006 and 4007). There are two kinds of premiums: the flat-rate premium, which applies to all plans, and the variable-rate premium, which applies only to single-employer plans.

Every plan covered under section 4021 of ERISA must make a premium filing each year, either by filing Form 1 or Form 1-EZ (whichever applies to the plan) or by filing electronically (as described in Part G of this booklet). Single-employer plans that file Form 1 must also file Schedule A. These three forms are included in this booklet. The table on page 11 shows which form(s) to file, and the instructions in this booklet tell how to complete Form 1, Form 1-EZ, and Schedule A and how to pay the premium due. In addition, most large plans must also file Form 1-ES (which is issued in a separate booklet) or make an equivalent electronic filing (as described in that booklet).

Your premium filing will be considered improper if it is not made in accordance with the premium regulations and instructions, if it is not accompanied by the required premium payment, or if it is otherwise incomplete. Subparts 3 through 9 of this Part A tell you the definitions of special terms that are used in these instructions.

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended (29 U.S.C. 1001 et seq.).

"Code" means the Internal Revenue Code of 1986, as amended.

"Premium regulations" means the PBGC's regulations on Premium Rates and Payment of Premiums (29 CFR Parts 4006 and 4007). The premium forms and instructions are issued under and implement the premium regulations.

"We" or "us" refers to the Pension Benefit Guaranty Corporation.

"You" or "your" refers to the administrator of a pension plan.

"Plan sponsor" means the employer(s), employee organization, association, committee, joint board of trustees, or other entity that maintains a plan.

"Plan administrator" means

a. the person specifically so designated by the terms of the instrument under which the plan is operated; or

b. if an administrator is not so designated, the plan sponsor.

"Form 1" means the Annual Premium Payment Form 1 issued by the PBGC and includes, for single-employer plans, the Schedule A.

"Form 1-EZ" means the Annual Premium Payment Form 1-EZ for Single-Employer Plans Exempt from the Variable-Rate Premium, issued by the PBGC.

"Form 1-ES" means the Estimated Premium Payment Form 1-ES issued by the PBGC (in a separate booklet) for estimating the flat-rate premium for certain large single-employer plans and the total premium for certain large multiemployer plans.

"Schedule A" means the schedule to the Form 1 that is used by single-employer plans that are not exempt from the variable-rate premium to report unfunded vested benefits and compute the variable-rate premium.

"Form 5500 series" means Form 5500, Annual Return/Report of Employee Benefit Plan, jointly developed by the Internal Revenue Service, the Department of Labor, and the PBGC. (Copies of this form may be obtained from the Internal Revenue Service or the Department of Labor.)

"Schedule B" means Schedule B to the Form 5500 series.

"EIN" means Employer Identification Number. It is always a 9-digit number assigned by the Internal Revenue Service for tax purposes.

"PN" means Plan Number. This is always a 3-digit number. The plan sponsor assigns this number to distinguish among employee benefit plans established or maintained by the same plan sponsor. A plan sponsor usually starts numbering pension plans at "001" and uses consecutive Plan Numbers for each additional plan. Once a PN is assigned, always use it to identify the same plan. If a plan is terminated, retire the PN " do not use it for another plan.

"CUSIP number" means a nine-digit number assigned to the publicly traded securities of a plan sponsor (or member of the sponsor's controlled group) under the securities numbering system of the Committee on Uniform Securities Identification Procedures. The first six digits of the CUSIP number identify the securities issuer, the next two digits identify the specific securities issue, and the last digit is a check digit.

"Premium payment year" means the plan year for which the premium is being paid.

"Premium Snapshot Date" means the last day of the plan year preceding the premium payment year (e.g., 12/31/2004 for a calendar year plan's 2005 premium payment year) except as follows:

a. For a new plan or newly covered plan, the premium snapshot date is the first day of the premium payment year, or the first day the plan became effective for benefit accruals for future service, if that is later. (If a newly created plan covered under section 4021 of ERISA is adopted retroactively (i.e., the adoption date of the plan is after its effective date), either the adoption date or the effective date may be used as the premium snapshot date. However, whatever date is used as the premium snapshot date must also be considered the first day of the plan year for purposes of prorating the premium (if you prorate) and for purposes of determining the premium due date. Thus, if you determine the plan's Final Filing Due Date as the 15th day of the 10th full calendar month that begins on or after the first day of the premium payment year (i.e., under B.2.b.(i), p. 8), you must use the first day of the premium payment year as the premium snapshot date. Similarly, if you prorate the plan's firstyear premium, you must use the premium snapshot date as the first day of the plan year (see B.5., p. 13).)

b. If the plan is the transferee plan in a merger or the transferor plan in a spinoff to a new plan and the transaction meets the conditions described in (i) and (ii) below, the premium snapshot date is the first day of the premium payment year. A plan merger or spinoff (as defined in the regulations under section 414(l) of the Code) is covered by this rule if

(i) a merger is effective on the first day of the transferee (the continuing) plan's plan year, or a spinoff is effective on the first day of the transferor plan's plan year, and

(ii) the merger or spinoff is not de minimis, as defined in the regulations under section 414(l) of the Code with respect to single-employer plans, or in the PBGC's regulation under ERISA section 4231 (29 CFR Part 4231) with respect to multiemployer plans.

The following examples illustrate the determination of the premium snapshot date. Examples 1 and 2 illustrate the usual rule (where the premium snapshot date is the last day of the plan year preceding the premium payment year). Examples 3 and 4 illustrate the situation for a new plan (where the premium snapshot date is the first day of the premium payment year, or the first day the plan became effective for benefit accruals for future service, if that is later). Examples 5 and 6 illustrate the situation for plans involved in certain mergers and spinoffs (where the premium snapshot date is the first day of the premium payment year).

Example 1 An ongoing plan has a plan year beginning September 1, 2005, and ending August 31, 2006. The premium snapshot date is August 31, 2005.

Example 2 An ongoing plan changes its plan year from a calendar year to a plan year that begins June 1, effective June 1, 2005. For the plan year beginning January 1, 2005, the premium snapshot date is December 31, 2004. For the plan year beginning June 1, 2005, the premium snapshot date is May 31, 2005.

Example 3 A new calendar-year plan is adopted December 10, 2004, effective January 1, 2005. The premium snapshot date is January 1, 2005.

Example 4 A new calendar-year plan is adopted February 18, 2005, retroactively effective as of January 1, 2005. The plan administrator may select either January 1 or February 18, 2005, as the premium snapshot date; the date selected must also be used for purposes of prorating the premium for the plan's first year.

Example 5 Plan A has a calendar plan year and Plan B has a July 1 - June 30 plan year. Effective January 1, 2005, Plan B merges into Plan A (and the merger is not de minimis). Plan A's premium snapshot date is January 1, 2005. (Since Plan B did not exist at any time during 2005, it does not owe a premium for the 2005 plan year.)

Example 6 Plan A has a calendar plan year. Effective January 1, 2005, Plan A spins off assets and liabilities to form a new plan, Plan B (and the spinoff is not de minimis). Plan A's premium snapshot date is January 1, 2005. (Plan B's premium snapshot date also is January 1, 2005, since it is a new plan that became effective on that date.)

"First Filing Due Date" means the date by which the flat-rate premium must be paid by a plan whose participant count for the prior year was 500 or more. For most plans, it is the last day of the 2nd full calendar month following the close of the preceding plan year (the last day of February for calendar-year plans). A different rule applies for plans changing plan years. For more details, see B.2.a. (p. 8) and B.2.c. (p. 9).

"Final Filing Due Date" means the date by which

a. Flat-rate premiums must be paid by plans to which the First Filing Due Date doesn't apply,

b. Variable-rate premiums must be paid by all singleemployer plans, and

c. Flat-rate reconciliation filings (if necessary) must be made by plans to which the First Filing Due Date applies.

For most plans, the Final Filing Due Date is the 15th day of the 10th full calendar month following the end of the plan year preceding the premium payment year (October 15 for calendar-year plans). Different rules apply for plans filing for the first time or changing plan years. For more details, see B.2.a. (p. 8), B.2.b. (p .8), and B.2.c. (p. 9).

"Filing Due Date" means either the First Filing Due Date or the Final Filing Due Date.

"Flat-rate premium" means the portion of the premium determined by multiplying the flat-rate premium charge by the number of participants in the plan on the premium snapshot date. The per-participant flat-rate charge for plan years beginning in 2005 is $19 for singleemployer plans and $2.60 for multiemployer plans.

"Variable-rate premium" means the portion of the single-employer premium based on a plan's unfunded vested benefits. The variable-rate premium for plan years beginning in 2005 is $9 for every $1,000 (or fraction thereof) of unfunded vested benefits.

"Participant" in a plan means an individual (whether active, inactive, retired, or deceased) with respect to whom the plan has benefit liabilities.

a. Benefit liabilities are all liabilities with respect to employees and their beneficiaries under the plan (within the meaning of Code section 401(a)(2)). Thus, benefit liabilities include liabilities for all accrued benefits, whether or not vested. In addition, a plan's benefit liabilities include liabilities for ancillary benefits not directly related to retirement benefits, such as disability benefits not in excess of the qualified disability benefit, life insurance benefits payable as a lump sum, incidental death benefits, or current life insurance protection. (See Treasury Regulation § 1.411(a)-7(a)(1).)

b. An individual is not counted as a participant after all benefit liabilities with respect to the individual are distributed through the purchase of irrevocable commitments from an insurer or otherwise. In addition, a non-vested individual is not counted as a participant after (1) a deemed "zero-dollar cashout," (2) a one-year break in service under plan rules, or (3) death.

i. Cashouts. If the plan has a separate cashout provision for zero benefits, terminated non-vested participants are deemed to be cashed out as of the date specified in the deemed cashout provision or, if no date is specified, as of the employment termination date. If the plan provides that zero benefit amounts will be deemed to be paid as soon as possible, terminated non-vested participants also will be deemed to be cashed out as of the employment termination date.

If the plan does not have a separate cashout provision for zero benefits but does have a mandatory cashout of small benefit amounts (e.g., benefits less than $5,000), terminated non-vested participants are deemed to be cashed out in the same manner as terminated vested participants. If the plan is silent as to the timing of actual cashouts of terminated vested participants, the plan is deemed to read "as soon as practicable" and the terminated non-vested participants are deemed to be cashed out immediately upon termination of employment. If the plan specifies a date as of which actual cashouts of terminated vested participants take place (e.g., on the first day of the next month), that rule also would apply to deemed cashouts of terminated non-vested participants. These rules do not apply if, despite plan language, the plan has an obvious pattern or practice of delaying distributions for long periods of time.

For example, suppose a calendar-year plan provides that if a participant terminates employment and the participant's vested benefit has a value of less than $5,000, the plan will pay the vested benefit to the participant in a lump sum as of the first of the month following termination of employment. Suppose further that no plan provisions specifically address payment of benefits upon termination of employment by non-vested participants. If a participant with a non-vested accrued benefit terminates employment on December 15, 2004, the participant will be included in the participant count as of December 31, 2004 (because the cashout is deemed to occur on January 1, 2005, the first of the month following termination of employment). If, as is typically the case for a calendar year plan, the plan's premium snapshot date for 2005 is December 31, 2004, a flat-rate premium must be paid for this participant for 2005.

ii. Breaks in service. A terminated non-vested individual ceases to be a participant for premium purposes when the individual incurs a one-year break in service under the plan, regardless of the length of the individual's absence from employment. For example, suppose that a calendar-year plan provides that a participant who performs 500 or fewer hours of service in a service computation period incurs a one-year break in service for that computation period. An individual might incur a oneyear break in service under the plan before December 31, 2004 (the premium snapshot date for the 2005 premium) if the individual left employment on February 1, 2004, and did not perform more than 500 hours of service during a computation period ending on November 30, 2004, even though December 31, 2004, comes before the first anniversary of the individual's separation from employment. This individual would not be included in the participant count for 2005.

If a non-vested individual incurs a break in service in a service computation period that coincides with the plan year preceding the premium payment year, we treat the individual as not being a participant for purposes of determining the premium for the premium payment year. For example, suppose a calendar-year hours-of-service plan requires more than 500 hours of service in a service computation period to avoid a break in service, and a nonvested participant in the plan earns 440 hours of service in the service computation period ending December 31, 2004. The PBGC would treat the individual as not being a participant for purposes of the plan's 2005 premium. (For more detail, see the amendment to the premium regulations' definition of "participant," published in the Federal Register on December 1, 2000, at 65 FR 75160.)

c. Beneficiaries and alternate payees. Benficiaries and alternate payees are not counted as participants. However, a deceased participant will continue to be counted as a participant if there are one or more beneficiaries or alternate payees who are receiving or have a right to receive benefits earned by the participant.

"Significant Event" means any of the following events:

(1) an increase in the plan's actuarial costs (consisting of the plan's normal cost under section 412(b)(2)(A) of the Code, amortization charges under section 412(b)(2)(B) of the Code, and amortization credits under section 412(b)(3)(B) of the Code) attributable to a plan amendment, unless the cost increase attributable to the amendment is less than 5% of the actuarial costs determined without regard to the amendment;

(2) the extension of coverage under the plan to a new group of employees resulting in an increase of 5% or more in the plan's liability for accrued benefits;

(3) a plan merger, consolidation, or spinoff that is not de minimis pursuant to the regulations under section 414(l) of the Code;

(4) the shutdown of any facility, plant, store, etc., that creates immediate eligibility for benefits that would not otherwise be immediately payable for participants separating from service;

(5) the offer by the plan for a temporary period to permit participants to retire at benefit levels greater than that to which they would otherwise be entitled;

(6) a cost-of-living increase for retirees resulting in an increase of 5% or more in the plan's liability for accrued benefits; and

(7) any other event or trend that results in a material increase in the value of unfunded vested benefits.

"Required Interest Rate" for a premium payment year beginning in 2004 or 2005 is the "applicable percentage" (currently 85 percent) of the annual rate of interest determined by the Secretary of the Treasury on amounts invested conservatively in long-term investmentgrade corporate bonds for the calendar month preceding the calendar month in which the premium payment year begins.

Note: Section 4006(a)(3)(E)(iii) of ERISA states that the Required Interest Rate is the "applicable percentage" of the annual yield on 30-year Treasury securities for the calendar month preceding the calendar month in which the premium payment year begins. However, the Pension Funding Equity Act of 2004 temporarily changes the Required Interest Rate for a premium payment year beginning in 2004 or 2005 by substituting, for the annual yield on 30-year Treasury securities, the annual rate of interest determined by the Secretary of the Treasury on amounts invested conservatively in long-term investmentgrade corporate bonds. (The provisions of the Job Creation and Worker Assistance Act of 2002 that had temporarily increased the Required Interest Rate to be used to determine the PBGC's variable-rate premium from 85 percent of the annual yield on 30-year Treasury securities to 100 percent of that yield figure expired at the end of 2003.)

On or about the 15th of each month, the PBGC publishes in the Federal Register a list of the Required Interest Rates for the preceding 12 months. In addition, for your convenience, the Required Interest Rate is posted on the PBGC's website. The Required Interest Rate also can be obtained by calling (202) 326-4041.

For purposes of determining whether a plan is a multiemployer plan or a single-employer plan, all trades or businesses (whether or not incorporated) that are under common control are considered to be one employer.

"Multiemployer plan" means a plan -

a. to which more than one employer is required to contribute,

b. which is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and more than one employer, and

c. which satisfies such other requirements as the Secretary of Labor may prescribe by regulation. (The above definition does not apply to a plan that elected on or before September 26, 1981, with PBGC's approval, not to be treated as a multiemployer plan (see ERISA section 4303). Such a plan is treated as a singleemployer plan.)

Single-employer plan" means any plan that does not meet the above definition of multiemployer plan. A single-employer plan includes a "multiple employer" plan.

"Multiple employer plan" means a plan -

a. to which more than one employer contributes, and

b. that does not satisfy the definition of multiemployer plan, or that elected on or before September 26, 1981, with PBGC's approval, not to be treated as a multiemployer plan (see ERISA section 4303).

Plan "mergers" and plan "consolidations" are transactions in which one or more transferor plans transfer all of their assets and liabilities to a transferee plan and disappear (because they become part of the transferee plan). However, there are important differences between the two kinds of transactions. In a merger, the transferee plan is one that existed before the transaction. In a consolidation, the transferee plan is a new plan that is created in the consolidation. Thus, the plan that exists after a consolidation follows the premium filing rules for new plans. In particular, it need not make an early premium payment with Form 1-ES (no matter how many participants any of the transferor plans had for the prior year(s)) and its filing due date is subject to the special rules for new plans. On the other hand, the transferee plan in a merger follows the normal rules for preexisting, ongoing plans.

In a "spinoff," the transferor plan transfers only part of its assets and/or liabilities to the transferee plan. The transferee plan may be a new plan that is created in the spinoff, or it may be a preexisting plan that simply receives part of the assets and/or liabilities of the transferor plan.

1. Who Must File
   1. All Covered Plans Must File

      The plan administrator of each single-employer plan and multiemployer plan covered under section 4021 of ERISA is required annually to file the prescribed premium information (either on the paper premium form(s) or electronically) and pay the premium due. Most privatesector defined benefit plans that meet tax qualification requirements are covered. If you are uncertain whether your plan is covered under section 4021, you should promptly request a coverage determination. Contact us as described in item 5. under "CONTACTS" on p. ii.

      A request for a coverage determination does not extend the due date for any premium that is finally determined to be due.

      It is the responsibility of the plan administrator to obtain and complete the applicable premium forms (or file electronically) and make the premium payment each year.

      If your plan is covered under section 4021 of ERISA, you must make a premium filing even if no premium is owed. This may happen if your plan is a new plan that grants no past service credits, so that there are no benefit liabilities on the premium snapshot date. (A plan with no benefit liabilities has no participants for premium purposes (see the instructions for item 13 of Form 1-EZ (p. 24) or Form 1 (p. 29)) and no unfunded vested benefits.) The premium filing certifies that there are no participants and that no premium is owed.

   2. One Plan, Or More Than One?

      If several unrelated employers participate in a program of benefits wherein the funds attributable to each employer are available to pay benefits to all participants, then there is a single multiple-employer plan and the plan administrator must file and pay premiums for the plan as a whole. Separate filings and premiums cannot be submitted for each individual employer.

      If several employers participate in a program of benefits wherein the funds attributable to each employer are available only to pay benefits to that employer's employees, then there are several plans (one for each employer) and the plan administrator must file and pay premiums separately for the plan of each individual employer.

      If separate plans are maintained for different groups of employees, regardless of whether each has the same sponsor or the sponsors are part of the same controlled group, then the plan administrator(s) must file and pay premiums separately for each plan.

   3. When Filing Obligation Ceases

      You must continue to make premium filings and pay premiums through and including the plan year in which any of the following occurs:

      1. Plan assets are distributed in satisfaction of all benefit liabilities pursuant to the plan's termination. (For rules on exemption from the variable-rate premium for terminating plans that have not yet distributed assets, see Part C, item 12(d), p. 22.)
      2. A trustee is appointed for the plan under ERISA section 4042.
      3. The plan disappears by transferring all its assets and liabilities to one or more other plans in a merger or consolidation.
      4. The plan ceases to be a covered plan under section 4021 of ERISA. If this happens, notify us promptly to let us know that we should not expect further premium filings for your plan.

      If a plan terminates and a new plan is established, premiums are due for the terminated plan as described above, and premiums are also due for the new plan from the first day of its first plan year (see B.2.b., p. 8).

      Example 1 A calendar year plan terminates in a standard termination with a termination date of September 30, 2004. On April 7, 2005, assets are distributed in satisfaction of all benefit liabilities. Since the terminating plan is undergoing a standard termination, no trusteeship is involved. The plan administrator must file and make the premium payments due for the 2004 and 2005 plan years. (The 2005 premium may be prorated. See B.5., p. 13.)

      Example 2 A plan with a plan year beginning July 1 and ending June 30 terminates in a distress termination with a termination date of April 28, 2005. On July 7, 2005, a trustee is appointed to administer the plan under ERISA section 4042. Premium forms and payments must be filed for this plan for both the 2004 and 2005 plan years, because a trustee was not appointed until after the beginning of the 2005 plan year. (The 2005 premium may be prorated. See B.5., p. 13.)

2. When to File NOTE: For disaster relief, see the instructions for the disaster relief check boxes on Form 1-EZ (p. 19) and Form 1 (p. 26).
   1. Filing Dates For Most Plans

      There are two Filing Due Dates " the First Filing Due Date and the Final Filing Due Date. For most plans:

      1. The "First Filing Due Date" is the last day of the 2nd full calendar month following the close of the preceding plan year (e.g., the last day of February for calendar-year plans), and
      2. The "Final Filing Due Date" is the 15th day of the 10th full calendar month following the end of the plan year preceding the premium payment year (e.g., October 15 for calendar-year plans).

         There are special due date rules for plans filing for the first time (see B.2.b., p. 8) and plans changing plan years (see B.2.c., p. 9).

         The First Filing Due Date applies only to the flat-rate premium filings for certain large plans. Whether you need to make a flat-rate premium filing and payment by the First Filing Due Date depends on the number of plan participants for whom you were required to pay premiums for the plan year preceding the premium payment year (i.e., for 2005 premiums, the 2004 participant count).

         Plans that were required to pay premiums for 500 or more participants for the preceding plan year must pay the flat-rate premium (or an estimate) with an appropriate form (e.g., Form 1-ES or electronic equivalent) by the First Filing Due Date. If an estimated filing is made, or if the plan"s total premium is not paid in full, the plan must make a final (reconciliation) filing with any required payment by the Final Filing Due Date. Only the flat-rate premium is due by the First Filing Due Date; the variablerate premium for single-employer plans is due by the Final Filing Due Date. For multiemployer plans (which pay only the flat-rate premium), the entire premium is due by the First Filing Due Date.

         Example A new calendar-year plan was adopted and effective on January 1, 2004, and had 650 participants on that date. Since the plan was not required to pay premiums for 2003 (because it was not in existence then), it was not required to pay its 2004 flat-rate premium by the First Filing Due Date in 2004 (March 1, 2004). It was required to pay its 2004 flat-rate and variable-rate premiums by the 2004 Final Filing Due Date (October 15, 2004). As a new plan, its 2004 premium snapshot date was January 1, 2004 (the first day of the plan year). The 2004 flat-rate premium was based on a participant count of 650 as of January 1, 2004.

         The number of participants decreases during 2004, and the participant count on December 31, 2004, is 450. For 2005, the participant count (450) is determined as of December 31, 2004, the plan"s 2005 premium snapshot date. The plan must pay a flat-rate premium for 450 participants by the First Filing Due Date (February 28, 2005) because it was required to pay premiums for 650 participants for the preceding year (2004), determined as of January 1, 2004, its 2004 premium snapshot date.

         A plan required to pay premiums for fewer than 500 participants for the preceding year is required to make its premium filing and pay the entire premium due by the Final Filing Due Date.

         The following table shows the Filing Due Dates for most plans for the 2005 premium payment year.

         2005
         Filing Due Dates
         Premium Payment Year Begins	First Filing Due Date	Final FIling Due Date
         01/01/2005	02/28/2005	10/17/2005*
         01/02 - 02/01/2005	03/31/2005	11/15/2005
         02/02 - 03/01/2005	05/02/2005*	12/15/2005
         03/02 - 04/01/2005	05/31/2005	01/17/2006*
         04/02 - 05/01/2005	06/30/2005	02/15/2006
         05/02 - 06/01/2005	08/01/2005*	03/15/2006
         06/02 - 07/01/2005	08/31/2005	04/17/2006*
         07/02 - 08/01/2005	09/30/2005	05/15/2006
         08/02 - 09/01/2005	10/31/2005	06/15/2006
         09/02 - 10/01/2005	11/30/2005	07/17/2006*
         10/02 - 11/01/2005	01/03/2006*	08/15/2006
         11/02 - 12/01/2005	01/31/2006	09/15/2006
         12/02 - 12/31/2005	02/28/2006	10/16/2006*

         *NOTE: If your filing is not made by this date, penalty and interest will be calculated from the last day of the month (for Form 1-ES) or the 15th of the month (for Form 1-EZ or Form 1) rather than the following business day " e.g., from Saturday 10/15/2005 rather than Monday 10/17/2005, or from Saturday 4/30/2005 rather than Monday 5/2/2005.

   2. Plans Filing For The First Time

      New and newly covered plans do not pay an estimated premium by a First Filing Due Date. For a plan filing for the first time, the "Final Filing Due Date" is the latest of the following dates:

      1. The 15th day of the 10th full calendar month that begins on or after the first day of the premium payment year
      2. The 15th day of the 10th full calendar month that begins on or after the day on which the plan becameeffective for benefit accruals for future service,
      3. 90 days after the date of the plan's adoption, or
      4. 90 days after the date on which the plan became covered under ERISA section 4021.

         If the adoption date of a newly created plan covered under section 4021 of ERISA is after its effective date (i.e., the plan is adopted retroactively), the first day of the premium payment year that you use for purposes of paragraph (i) above must also be used as the premium snapshot date.

         The following examples show how the definition of the Final Filing Due Date works for plans filing for the first time.

         Example 1 A new plan has a calendar plan year. The plan was adopted October 1, 2004, and became effective for benefit accruals January 1, 2005. The Final Filing Due Date for the 2005 plan year is October 17, 2005.

         Example 2 A new plan is adopted on December 1, 2005, and has a July 1 - June 30 plan year. The plan became effective for benefit accruals for future service on December 1, 2005. The Final Filing Due Date for the plan's first year, December 1, 2005, through June 30, 2006, is September 15, 2006. (The 2005 premium may be prorated. See B.5., p. 13.)

         Example 3 A newly created plan covered under section 4021 of ERISA has a calendar plan year. The plan was adopted on August 16, 2005, with a retroactive effective date of January 1, 2005. If the plan administrator elects to use January 1, 2005, as the premium snapshot date, the Final Filing Due Date for the 2005 plan year is November 14, 2005 (90 days after the date of the plan's adoption). If the plan administrator elects to use August 16, 2005, as the premium snapshot date, the Final Filing Due Date for the 2005 plan year is June 15, 2006 (the 15th day of the tenth full calendar month that begins on or after August 16, 2005, the first day of the premium payment year). (If August 16, 2005, is used as the first day of the premium payment year, the premium for the short plan year may be prorated. See B.5., p. 13.)

         Example 4 A professional service employer maintains a plan with a calendar plan year. If this type of plan has never had more than 25 active participants since September 2, 1974, it is not a covered plan under ERISA section 4021. On October 15, 2005, the plan, which always had 25 or fewer active participants, has 26 active participants. It is now a covered plan and will continue to be a covered plan regardless of how many active participants the plan has in the future. The Final Filing Due Date for the 2005 plan year is January 13, 2006, 90 days after the date on which the plan became covered. (The premium for the short plan year may be prorated. See B.5., p. 13.)

   3. Plans Changing Plan Years

      For a plan that changes its plan year, the Filing Due Dates for the short year are unaffected by the change in plan year. For the first plan year under the new plan year cycle:

      1. The "First Filing Due Date" is the later of the last day of the 2nd full calendar month following the close of the preceding plan year or 30 days following the date on which a plan amendment changing the plan year was adopted, and
      2. The "Final Filing Due Date" is the later of the 15th day of the 10th full calendar month following the end of the plan year preceding the premium payment year, or 30 days after the date on which a plan amendment was adopted changing the plan year.

      The following examples show how the definition of the Final Filing Due Date works for plans changing plan years.

      Example 1 By plan amendment adopted on December 1, 2004, a plan changes from a plan year beginning January 1 to a plan year beginning June 1. This results in a short plan year beginning January 1, 2005, and ending May 31, 2005. The plan always has fewer than 500 participants. The Final Filing Due Date for the short plan year is October 17, 2005. The Final Filing Due Date for the new plan year beginning on June 1, 2005, is March 15, 2006. (The premium for the short plan year may be prorated. See B.5, p. 13.)

      Example 2 By plan amendment adopted on January 3, 2006, and made retroactively effective to April 1, 2005, a plan changes from a plan year beginning on March 1 to a plan year beginning on April 1. The plan always has fewer than 500 participants. The Final Filing Due Date for the short plan year that began on March 1, 2005, is December 15, 2005. The Final Filing Due Date for the new plan year, which began April 1, 2005, is February 2, 2006, 30 days after the adoption of the plan amendment changing the plan year. (The premium for the short plan year may be prorated. See B.5, p. 13.)

      Example 3 By plan amendment adopted on July 5, 2005, and made retroactively effective to May 1, 2005, a plan changes from a plan year beginning February 1 to a plan year beginning May 1. The plan always has 500 or more participants. The First Filing Due Date for the short plan year is March 31, 2005, and the Final Filing Due Date is November 15, 2005. The First Filing Due Date for the new plan year, which began May 1, 2005, is August 4, 2005, which is the later of the end of the second full calendar month after the close of the short plan year or 30 days after adoption of the plan amendment. The Final Filing Due Date is February 15, 2006. (The premium for the short plan year may be prorated. See B.5, p. 13.)

   4. Saturday, Sunday, And Federal Holiday
      1. Filing Due Dates. In computing any period of time described in the premium regulations and these instructions, the day of the event or default from which the period of time begins to run is not counted. The last day of the period is counted, unless it falls on a Saturday, Sunday or Federal holiday, in which case the period runs until the end of the next day which is not a Saturday, Sunday, or Federal holiday.

         Example Plans with plan years beginning on July 1, 2005, normally would have a Final Filing Due Date of April 15, 2006. Because that day is a Saturday, the due date is Monday, April 17, 2006.

      2. Interest and Penalty Charges. When computing late payment interest and penalty charges, Saturdays, Sundays, and Federal holidays are included.
         
   5. Filing Method and Filing Date

      You may make your premium filing and payment (if by check, with your premium form) by hand, mail, commercial delivery service, or electronically. You can find detailed rules on filing methods and on how we determine your filing date (for electronic filings as well as for other filings) in Part 4000 of our regulations (available on the PBGC's website, www.pbgc.gov).

      The discussion below describes the rules for filings other than electronic filings. See Part B.4.b.ii., p. 13 of these instructions for information on electronic funds transfers. See p. 43 for information about how to file electronically using My PAA, our new electronic premium filing method.

      Under our filing rules, your filing date is the date you send your filing, provided you meet certain requirements that are summarized below. If you do not meet these requirements, your filing date is the date we receive your submission. However, if we receive your submission after 5:00 p.m. (our time) on a business day, or anytime on a weekend or Federal holiday, we treat it as received on the next business day. (If you file your submission by hand, your filing date is the date of receipt of your handdelivered submission at the proper address.)

      Filings by mail. If you file your submission using the U.S. Postal Service, your filing date is the date you mail your submission by the last collection of the day, provided the submission: (1) meets the applicable postal requirements; (2) is properly addressed; and (3) is sent by First-Class Mail (or another class that is at least equivalent). (If you mail the submission after the last collection of the day, or if there is no scheduled collection that day, your filing date is the date of the next scheduled collection.) If you meet these requirements, we make the following presumptions:

      Legible postmark date. If your submission has a legible U.S. Postal Service postmark, we presume that the postmark date is the filing date.

      Legible private meter date. If your submission has a legible postmark made by a private postage meter (but no legible U.S. Postal Service postmark) and arrives at the proper address by the time reasonably expected, we presume that the metered postmark date is your filing date.

      Filings using a commercial delivery service. If you file your submission using a commercial delivery service, your filing date is the date you deposit your submission by the last scheduled collection of the day for the type of delivery you use (such as two-day delivery or overnight delivery) with the commercial delivery service, provided that the submission meets the applicable requirements of the commercial delivery service and is properly addressed, and the delivery service meets one of the requirements listed below. If you deposit it later than that last scheduled collection of the day, or if there is no scheduled collection that day, your filing date is the date of the next scheduled collection. The delivery service must meet one of the following requirements:

      Delivery within two days. It must be reasonable to expect your submission will arrive at the proper address by 5:00 p.m. on the second business day after the next scheduled collection; or

      Designated delivery service. You must use a "designated delivery service" under section 7502(f) of the Internal Revenue Code (Title 26, USC). Our website, www.pbgc.gov, lists those designated delivery services. You should make sure that both the provider and the particular type of delivery (such as two-day delivery) are designated.

   6. Relationship Between Form 1-EZ or Form 1 And Form 5500 Series
      1. Due Dates. For most plans, the deadline for filing the Form 1-EZ or Form 1 and the Form 5500 series will coincide. This occurs when a corporate plan sponsor applies for the 2½-month extension for filing its Form 5500. Note: Extensions of time to file the Form 5500 series beyond the Form 1-EZ or Form 1 filing deadline do not extend the Filing Due Dates for the PBGC forms.

         Example A calendar year plan has a Final Filing Due Date for the Form 1 of October 15. The corporate plan sponsor applies for the 2½-month Form 5500 extension. This would make the due date for the Form 5500 series (which is normally July 31 for a calendar year plan) also October 15.

      2. Plan Years Covered By Forms. Although the filing deadlines for the premium forms and for the Form 5500 series typically coincide, and the participant counts for the premium forms and for item 7 of the Form 5500 series are generally determined as of the same date, i.e., the last day of the plan year preceding the year of the filing, there is a critical difference between the two filings. The Form 1-EZ or Form 1 is filed for the current plan year and the Form 5500 series is filed for the previous plan year. (For example, if the plan sponsor of a plan whose plan year begins February 1 applies for the 2½-month extension for filing Form 5500, the 2005 Form 1-EZ or Form 1 and 2004 Form 5500 must be filed by November 15, 2005.)
3. What to File
   1. General

      You must make your final premium filing by the Final Filing Due Date using the following form(s):

      Type of plan	Form(s) to use
      Multiemployer plan	Form 1 alone
      Single-employer plan that claims an exemption from the variable rate premium	Form 1-EZ alone
      Single-employer plan that does not claim an exemption from the variable-rate premium (even if the variable-rate premium is zero)	Form 1 with Schedule A

      In addition, the flat-rate premium for a plan in any of these three categories must be paid by the First Filing Due Date if the plan had 500 or more participants for the plan year preceding the premium payment year. These filings may be made on an estimated basis either electronically or using Form 1-ES (issued in a separate booklet). If you know all the information needed to make a final filing (electronically or using Form 1-EZ or Form 1) before the First Filing Due Date, you may make a final filing instead of an estimated filing. If you make an estimated filing, you will still be required to make a final filing by the Final Filing Due Date.

      Plans that were required to report 500 or more participants on their final premium filing for 2004 use the 2005 Form 1-ES, which is issued in a separate booklet, to make initial 2005 payments of the flat-rate premium based on an estimated participant count. These plans use Form 1-EZ or Form 1 to make a subsequent reconciliation filing based on an actual participant count.

   2. Cover letters

      Your filing should be sent without a cover letter. If you need to submit additional information with your filing, it should be in an attachment (and you should check the attachment box in item 19 of Form 1-EZ or item 18 of Form 1)

   3. Exemption From Variable-rate Premium

      A single-employer plan may claim an exemption from the variable-rate premium only if it meets the requirements for one of the exemptions described in the instructions for item 12 of Form 1-EZ in Part C. Having a variable-rate premium of zero is not the same as being exempt from the variable-rate premium. To be exempt, the plan must meet the requirements for one of the exemptions. Briefly, the exemptions in item 12 of Form 1-EZ are for:

      1. Plans with no vested participants;
      2. Section 412(i) plans;
      3. Fully funded small plans;
      4. Plans terminating in standard terminations; and
      5. Plans at the full funding limit.

      For a more complete description, see the instructions for item 12 of Form 1-EZ in Part C, p. 22.

   4. Plans With A Variable-rate Premium Of Zero That Also Qualify For An Exemption

      If your plan has a variable-rate premium of zero and also qualifies for an exemption from the variable-rate premium, you may either file Form 1-EZ (claiming the exemption) or file Form 1 and Schedule A (reporting a variable-rate premium of zero). In general, it will be easier to file Form 1-EZ.

      (For example, a new plan that has no benefit liabilities on the premium snapshot date will have no unfunded vested benefits and thus will also qualify for the exemption for plans with no vested participants and, if it is a small plan, for the exemption for fully funded small plans.)

   5. Where To Obtain Forms

      Forms are included in the Premium Payment Package. You may also use forms downloaded from the PBGC website (www.pbgc.gov) or computer-generated forms provided by a vendor that has received PBGC approval for automated (computer-generated) versions of the forms. In addition, for premium payment years beginning after 2001, we will accept photocopies of the forms. The forms you file must have original signatures. It is your responsibility as plan administrator to obtain the necessary forms and submit filings on time. (You should ensure that you maintain an updated address with the PBGC so that we can mail your next Premium Payment Package to you. See Part C, item 2, p. 19, or Part D, item 2, p. 26, and B.6.e., p. 16.)

      1. Premium Payment Package.

         We will mail a 2005 Premium Payment Package containing Form 1-EZ, Form 1, and Schedule A, and, as appropriate, a 2005 Estimated Premium Payment Package containing Form 1-ES, to the plan administrator of each ongoing plan for which a 2004 Form 1-EZ or Form 1 was filed, unless you have indicated that you do not want paper forms and instructions sent to you. We mail these packages to the address shown in item 2 of the 2004 Form 1-EZ or Form 1. We mail the Premium Payment Package seven months before the expected Final Filing Due Date, and the Estimated Premium Payment Package two months before the expected First Filing Due Date.

         If you are a plan administrator and you do not receive a Premium Payment Package and/or Estimated Premium Payment Package, or if you need extra copies, contact us as described in item 3. under "CONTACTS" on p. ii.

         You may also obtain extra copies of the Premium Payment Package and/or Estimated Premium Payment Package and forms from the Employee Benefits Security Administration of the U.S. Department of Labor (see addresses at the end of this Premium Payment Package).

         If you are a pension practitioner serving many covered plans, you may wish to receive a bulk shipment of the Premium Payment Package and/or Estimated Premium Payment Package and forms. If so, complete the order blank at the end of this Premium Payment Package. Check the applicable box on the order blank

      2. Computer-Generated Forms.

         There are some companies that will provide software that generates PBGC-approved forms. These forms have been given a 6- digit approval number that appears on each form. These forms are acceptable for submission. In addition, you may download premium forms from the PBGC website (www.pbgc.gov).

         To achieve the best results when printing computergenerated or downloaded forms, use a laser or inkjet printer with resolution of 300 DPI (dots per inch) or higher. Please make sure that you have adequate toner in your printer cartridge. Thermal or dot matrix (9 or 24 pin) printers are not recommended for printing the premium forms. Do not use any printing options, such as "Fit to Page," that may tend to enlarge or reduce the size of the image. Please make sure no part of the form is missing after it is printed. Please also make sure the forms print with the proper number of pages: the Form 1-EZ, Form 1, and Schedule A require two pages each; the Form 1-ES requires one page.

         Any vendor requesting approval of automated forms may send a sample to the address in item 9. under "CONTACTS" on p. ii. Include 3 original forms produced by your software and a brief note requesting PBGC review of the forms.

      3. Forms For Prior Years. If you are filing for a previous year, you must use the proper year's form(s). To obtain the form(s), you may use the Premium Payment Package Order Form at the end of this package or contact us as described in item 3. under "CONTACTS" on p. ii.
         
   6. How to Fill Out Forms

      The premium forms are in Optical Character Recognition (OCR) format. This enables PBGC to process your plan information quickly and accurately. The OCR process requires that you print data clearly within the boxes provided on the forms.

4. Where to File
   1. Where to File Forms.
      1. Mail Service. Mail your premium forms with your premium payment (if you pay by check) to:

         Pension Benefit Guaranty Corporation
         Dept. 77430
         P.O. Box 77000
         Detroit, MI 48277-0430
         

         Do not use this address for any purpose except to mail your premium forms and your premium payment check(s).
      2. Delivery Service. Alternatively, if you use a delivery service that does not deliver to a P.O. Box, your premium forms, along with your premium payment (if you pay by check), may be hand-delivered to:

         PBGC, Bank One
         9000 Haggerty Road
         Dept. 77430, Mail Code MI1-8244
         Belleville, MI 48111
         

   2. Where to Send Payments.
      1. Checks. If you pay by check, write the EIN/PN (from item 3(a) and (b) of Form 1-EZ, Form 1 or Form 1-ES) and the date the premium payment year commenced (PYC) on the check and send the check with your premium forms to the applicable address above.
      2. Electronic funds transfers. If you pay by electronic funds transfer, make the transfer to:

         Bank One, NA
         Chicago, IL
         ABA: 071000013
         Account: 656510666
         Beneficiary: PBGC
         Reference: (give plan's EIN/PN and the date the premium payment year commenced(PYC))
         

         Report the EIN/PN from item 3(a) and (b) of Form 1-EZ, Form 1, or Form 1-ES and the date the premium payment year commenced (PYC), in the payment ID line of the electronic funds transfer in the format "EIN/PN: XXXXXXXXX/ XXX PYC: MM/DD/YY." Since we process these payments electronically, strict adherence to this format is required for accurate and timely application of your payment. Any deviation from the prescribed format may result in our sending you a bill for premium, interest, and penalty if our automated system cannot apply your payment.
5. Prorating your Premium
   1. General. You are allowed to pay a prorated premium for certain short plan years:
      • a short first year of a new or newly covered plan;
      • a short year created by an amendment that changes
      the plan year (but note that an amendment is not considered to change the plan year if the plan merges into or consolidates with another plan or otherwise ceases its independent existence either during the short plan year or at the beginning of the full plan year following the short plan year);
      • a short year created by distribution of plan assets pursuant to plan termination; or
      • a short year created by the appointment of a trustee for a single-employer plan under ERISA section 4042.
      The proration is based on the number of full and partial months in the short plan year. Alternatively, you may pay a full year's premium and either (1) request that the PBGC compute and pay a partial refund or (2) claim a credit in the next year's premium filing. (No premium proration is allowed where a plan disappears by merger or consolidation into another plan.) The short year need not have ended by the time you pay a prorated premium, but if the plan year turns out to be longer than you anticipated, you will have to make up any premium underpayment (which will be subject to interest and penalties).
   2. How to prorate the premium yourself. To pay a prorated premium, you first determine the premium without proration, then subtract a credit that brings the premium down to the prorated amount:
      1. The premium amount you enter in item 14 of Form 1-EZ or Form 1 must be calculated as if there were no short-year proration. If you are using Form 1, refer to the amount in item 14(a) if your plan is a multiemployer plan or to item 14(d) if your plan is a single-employer plan.
      2. To determine the proration credit for the short plan year, multiply the premium in item 14 of Form 1-EZ or Form 1 by the following fraction:
         12 minus number of months in short year
         12
         
         In determining the numerator of the fraction, any partial month in the short plan year must be counted as a full month. See Note -- Counting Months for Proration, below. If the adoption date of a newly created plan covered under section 4021 of ERISA is after its effective date (i.e., the plan is adopted retroactively), the premium snapshot date you use (i.e., either the adoption date or the effective date) must be used as the first day of the premium payment year for purposes of determining the number of months in the plan's first year
      3. Enter the result from step (2) (plus any other available credits) in item 15(b) of Form 1-EZ or Form 1.
      4. Subtracting item 15(c) of Form 1-EZ or Form 1 (which includes the amount in item 15(b)) from item 14 of Form 1-EZ or Form 1 will have the effect of prorating the amount in item 14.

         For example, suppose your plan year has been changed by amendment from a calendar year to a year beginning July 15, effective July 15, 2005. Assume that your premium for the plan year beginning January 1, 2005, calculated as if there were no short-year proration, would be $11,400. This is the amount you would enter in item 14 of Form 1-EZ or Form 1 for the plan year beginning January 1, 2005. If you choose to prorate your premium for that year, you would determine your short-year credit by multiplying $11,400 by 5/12. (The number of full and partial months in your short year -- i.e., January through July of 2005 -- is 7, so the numerator of the fraction is 5 -- i.e., 12 minus 7.) This gives you a short-year credit of $4,750 (for the five months of August through December of 2005), which you would enter in item 15(b) of Form 1- EZ or Form 1 for the plan year beginning January 1, 2005. Assuming you have no other credits, you would pay $6,650 (i.e., $11,400 minus $4,750) with the Form 1-EZ or Form 1.

         Note -- Counting Months for Proration
         Each "plan month" (i.e., each month in the plan year) generally begins on the same day of each successive calendar month. For example, if the plan year begins on July 1, the first day of each successive calendar month is the beginning of a new plan month; similarly, if the plan year begins on January 15, the second plan month begins on February 15, the third plan month on March 15, etc. Thus, if a short final year begins on January 1 and ends on June 1, there would be 6 (full or partial) months in the short year. (The last (partial) month, beginning (and ending) on June 1, would count as a full month for purposes of prorating the premium.) Similarly, if a short first year begins on July 31 and ends on December 31, there would also be six (full or partial) months in the short year.

         There are two special rules when a plan year begins at or near the end of a calendar month:

         • If the plan year begins on the last day of a calendar month, successive plan months begin on the last day of successive calendar months. For example, if the plan year begins on November 30, successive plan months begin on December 31, January 31, the last day of February (the 28th or 29th), March 31, etc.
         • If the plan year begins on the 29th or 30th of a calendar month other than February, the plan month beginning in February begins on the last day of February. For example, if the plan year begins on November 29, successive plan months begin on December 29, January 29, the last day of February (the 28th or 29th), March 29, etc. If the plan year begins on December 30, successive plan months begin on January 30, the last day of February (the 28th or 29th), March 30, April 30, etc.
   3. How to request a partial refund. To request a partial refund, write promptly, under separate cover, to the address in item 3.a. or 3.b. under "CONTACTS" on p. ii. Enclose a copy of the Form 1-EZ or Form 1 that you filed. We will calculate the amount of your refund. If you want your refund paid by electronic funds transfer, you must include the bank routing number and account number (and any sub-account number) with your request and indicate whether the account is a checking account or savings account.
   4. For proration purposes, the short first year of a new plan is treated as beginning on the premium snapshot date, and the short first year of a newly covered plan is treated as beginning on the date when the plan becomes covered under section 4021 of ERISA.
   5. For proration purposes, a terminating plan's final (short) plan year is treated as ending on --
      1. for a multiemployer plan that distributed all its assets pursuant to section 4041A of ERISA, the date the distribution is completed; or
      2. for a single-employer plan, the earlier of the dates described in (1) and (2) below
         1. the date on which the distribution of the plan's assets in satisfaction of all benefit liabilities was completed; or
         2. the date that a trustee for the terminating plan was appointed under ERISA section 4042.
   6. Examples. The following examples illustrate the proration of premiums.

      Example 1 A new plan is adopted on December 1, 2005, and has a July 1 - June 30 plan year. The plan became effective for benefit accruals for future service on December 1, 2005. The plan administrator may prorate the 2005 flat-rate premium and pay for only seven months (December 2005 - June 2006). Alternatively, the plan administrator may pay a full year's premium and either (1) claim a credit on the next year's premium filing or (2) request a refund for the period of July - November 2005.

      Example 2 By plan amendment adopted on December 1, 2004, a plan changes from a plan year beginning January 1 to a plan year beginning June 1. This results in a short plan year beginning January 1, 2005, and ending May 31, 2005. The plan administrator may prorate the premium for the short plan year and pay for only five months (January - May 2005). Alternatively, the plan administrator may pay a full year's premium and either (1) claim a credit on the next year's premium filing or (2) request a refund for the period of June - December 2005.

      Example 3 On October 15, 2005, the plan administrator of a calendar year plan pays the plan's premium for the plan year beginning January 1, 2005. The plan administrator expects a plan amendment to be adopted in November 2005, and made retroactively effective to February 1, 2005, changing from a plan year beginning on January 1 to a plan year beginning on February 1. In determining the premium for the plan year beginning January 1, 2005, the plan administrator may anticipate the adoption of the amendment and prorate the premium for the short plan year, paying for only one month (January 2005). (If the amendment is not adopted, an amended filing would have to be made, and the additional amount of premium owed would be subject to interest and penalty.) Alternatively, the plan administrator may pay a full year's premium and either (1) claim a credit on the next year's premium filing or (2) request a refund for the period of February - December 2005.

      Example 4 By plan amendment adopted on June 5, 2005, and made retroactively effective to April 1, 2005, a plan changes from a plan year beginning January 1 to a plan year beginning April 1. The plan has a short year beginning January 1, 2005, and ending March 31, 2005. The plan administrator may prorate the premium for the short plan year and pay for only three months (January - March 2005). Alternatively, the plan administrator may pay a full year's premium and either (1) claim a credit on the next year's premium filing or (2) request a refund for the period of April - December 2005.

      Example 5 A calendar year plan terminates in a standard termination with a termination date of September 30, 2004. On April 7, 2005, assets are distributed in satisfaction of all benefit liabilities. The plan has a short plan year ending April 7, 2005. The plan administrator may prorate the 2005 premium and pay for only four months of 2005. Alternatively, the plan administrator may pay a full year's premium and request a refund for the period of May - December 2005.

      Example 6 A plan with a plan year beginning July 1 and ending June 30 terminates in a distress termination with a termination date of April 28, 2005. On July 7, 2005, a trustee is appointed to administer the plan under ERISA section 4042. The plan has a short plan year beginning July 1, 2005, and ending July 7, 2005. The 2005 premium may be prorated by taking a credit for 11/12 of the 2005 plan year (for the period of August 2005 - June 2006). Alternatively, a full year's premium may be paid and a refund requested for the period of August 2005 - June 2006.

6. How to Correct a Filing
   1. Making Payment Without Filing Form

      If you sent in your payment without filing the Form 1-EZ, Form 1, or Form 1-ES, as applicable, send the correct form to the address in item 2.a. or 2.b. under "CONTACTS" on p. ii.

   2. Filing Form Without Making Required Payment

      If you sent us Form 1-EZ, Form 1, or Form 1-ES without making a required payment, you should send the payment as soon as possible to minimize late payment charges. If you make your payment by check, enclose your check with a copy of the original form and send them to the address in item 2.a. or 2.b. under "CONTACTS" on p. ii. If you make your payment by electronic funds transfer, make the transfer as described in item 2.d. under "CONTACTS" on p. ii.

      Report the EIN/PN from item 3(a) and (b) of Form 1-EZ, Form 1, or Form 1-ES and the date the premium payment year commenced (PYC), in the payment ID line of the electronic funds transfer in the format "EIN/PN: XX-XXXXXXX/XXX PYC: MM/DD/YY."

   3. Amended Filing -- Premium Underpayment

      If you discover after you have filed the 2005 Form 1-EZ or Form 1 that you have made an error in your participant count or in the calculation of the variable-rate premium due, you must use a 2005 form to correct your filing. (Underpayment in an earlier year must be corrected using the form(s) for that specific year. See B.3.e.iii., p. 12, for information on obtaining an earlier year's form(s).) Check the box in the heading of the Form 1-EZ or Form 1 to indicate that this is an amended filing. (On prior years' forms without an "Amended Filing" box, print or type "Amended Filing" at the top of the form.) Fill in the Form 1-EZ or Form 1 and Schedule A as you would for your annual filing. Enter the corrected total premium in item 14 of Form 1-EZ or in item 14(a) or 14(d) of Form 1 (as appropriate). In item 15(b) of Form 1-EZ or Form 1, enter the sum of the credits you previously claimed in that item plus the amount you paid with your original filing. The amount due with the amended filing should appear in item 16 of Form 1-EZ or Form 1. This should equal the difference between the new total premium due and the new total credits. Submit your amended Form 1-EZ or Form 1 (with Schedule A for single-employer plans, even if no Schedule A data have changed) with your payment as described in item 2. under "CONTACTS" on p. ii.

   4. Amended Filing -- Premium Overpayment

      If you discover after you have filed the 2005 Form 1-EZ or Form 1 that you overpaid your premium, follow the instructions in B.6.c. above, except that the difference between the new total premium and the new total credits should be entered in item 17 of Form 1-EZ or Form 1. Also, you must check the box in item 17 if you want this amount refunded.

      Send your amended Form 1-EZ or Form 1 (with Schedule A if appropriate) promptly to the address in item 2. under "CONTACTS" on p. ii. If you want your refund paid by electronic funds transfer, you must provide the necessary information in item 17. If you are amending your filing to prorate the premium for the short first plan year of a newly created plan that is adopted with a retroactive effective date, make sure that the date used as the first day of the premium payment year for purposes of proration is the same as the premium snapshot date.

      Note: If the overpayment shown on an amended filing (for any year) exceeds $500, attach a statement explaining the specific circumstances or events that caused the overpayment and made the amended filing necessary. (For example, if your original filing's participant count included employees at a division that is not covered by the plan, the statement would explain why the employees were erroneously counted as participants and how the error was discovered.) Check the box in item 19 on Form 1-EZ or item 18 on Form 1 to indicate that the statement is attached.

   5. How To Correct An Address

      See items 1 and 2 of Part C (p. 19) or Part D (p. 26) if you need to correct your address or the plan sponsor's address and are doing so at the same time you are making your premium filing.

      However, to keep our records current and to ensure that your forms will be mailed to the correct address, you should provide us with your current address as soon as a change has occurred. You may do so by contacting us either in writing or by phone as described in item 3. under "CONTACTS" on p. ii.

7. Underpayments And Overpayments
   1. Underpayments

      If you file a premium payment after the Filing Due Date, we will bill the plan for the appropriate Late Payment Charges. The charges include both interest and penalty charges. The charges are based on the outstanding premium amount due on the Filing Due Date. (PBGC also may assess penalties under section 4071 of ERISA for failure to provide premium-related information (see B.8., p. 18).)

      1. Interest Charges

         The Late Payment Interest Charge is set by ERISA and we cannot waive it. Interest accrues at the rate imposed under section 6601(a) of the Code (the rate for late payment of taxes) and is compounded daily. The rate is established periodically (currently on a quarterly basis) and the PBGC publishes the interest rates on or about the 15th of January, April, July, and October in the Federal Register. The rates are also posted on the PBGC's website (www.pbgc.gov).

         Late Payment Interest Charges will be assessed for any premium amount not paid when due, whether because of an estimated participant count or an erroneous participant count or other mistake in computing the premium owed.

      2. Penalty Charges

         The Late Payment Penalty Charge is established by us, subject to ERISA's restriction that the penalty not exceed 100 percent of the unpaid premium amount. The penalty is a percentage of the unpaid amount for each month (or portion of a month) it remains unpaid. The monthly rate is higher or lower depending on whether the premium underpayment is "self-corrected." The penalty rate is 1 percent of the late premium payment per month if the late payment is made on or before the date when the PBGC issues a written notification indicating that there is or may be a premium delinquency (e.g., a statement of account (premium invoice), a past-due-filing notice, or a letter initiating an audit). A penalty rate of 5 percent per month applies to payments made after the PBGC notification date.

      3. PBGC Waivers

         Before the Filing Due Date, if you can show substantial hardship and that you will be able to pay the premium within 60 days after the Filing Due Date, you may request that we waive the Late Payment Penalty Charge. If we grant your request, we will waive the Late Payment Penalty Charge for up to 60 days.

         To request a waiver, write separately to the address in item 3.a. or 3.b. under "CONTACTS" on p. ii.

         Waivers of the Late Payment Penalty Charge may also be granted based on any other demonstration of reasonable cause. If you wish to request such a waiver, write to the address in item 3.a. or 3.b. under "CONTACTS" on p. ii after you receive a statement of account (premium invoice) assessing penalties. This address should also be used to submit requests for reconsideration of late payment penalties. Failure to obtain premium forms and instructions from the PBGC is not reasonable cause for a waiver.

      4. Minimizing Late Payment Charges -- Final Filing

         If you are having difficulty determining your plan's premium before the Final Filing Due Date, you can file your premium forms using an estimate. You can then make an amended filing, reflecting the actual figure (see B.6., p. 15, for procedure). This will minimize the assessment of Late Payment Charges to the plan.

      5. Minimizing Late Payment Charges -- First Filing

         The premium owed for a plan year is based on the number of plan participants as of the premium snapshot date. However, plans may not have an accurate participant count before the First Filing Due Date. For this reason, the Form 1-ES permits plans to compute the amount owed on the basis of an estimated participant count. However, we remind you that for plans required to pay premiums for 500 or more participants for the prior plan year, the total flat-rate premium, in the case of a single-employer plan, or the entire premium, in the case of a multiemployer plan, is due by the First Filing Due Date. If the full amount due is not paid by that date, the plan will be subject to late payment interest charges and may also be subject to late payment penalty charges.

         No penalty will be charged (although interest will be charged) if you did not make an estimated premium payment because you erroneously reported fewer than 500 participants for the plan year preceding the premium payment year. In addition, you can avoid a late payment penalty charge (but not the interest) for the flat-rate premium if the premium (based on an estimated participant count) that you pay with the Form 1-ES by the First Filing Due Date equals at least the lesser of:

         1. 90 percent of the premium amount due on the plan's Final Filing Due Date for the $19 per-participant flat-rate single-employer premium or the $2.60 perparticipant multiemployer premium, or
         2. an amount equal to the participant count for the year before the premium payment year multiplied by $19 for a single-employer plan or $2.60 for a multiemployer plan. This test will be met if the amount paid is sufficient using either the actual participant count for the plan year preceding the premium payment year or a smaller count that was erroneously reported.

            For purposes of determining whether a penalty is due, the participant count "erroneously reported" refers to the premium filing (or last amended filing) for the plan year preceding the premium payment year made to the PBGC by the First Filing Due Date.

            See the Form 1-ES instructions in the Estimated Premium Payment Package for more detail. If you have an accurate participant count by the First Filing Due Date, you should pay the amount owed by that date. If you do so, you will avoid the interest charge and any penalty charge. If you have all the information needed to make a final filing on or before the First Filing Due Date, you may file a Form 1-EZ or Form 1 (with Schedule A for a single-employer plan). If you file a Form 1-ES, you will still be required to file a Form 1-EZ or Form 1 (with Schedule A for a single-employer plan) by the Final Filing Due Date.

   2. Overpayments

      If a premium is overpaid for a plan, you may request that the overpayment be refunded or applied to the next year's premium for the pla.

      If you request that an overpayment be applied to the next year's premium, you should claim the amount of the overpayment as a credit on the next year's premium filing for the plan.

      A request for a refund must be made within the period specified in the applicable statute of limitations (generally six years after the overpayment was made). If there are unpaid premiums, interest, or penalties for your plan for prior years, you may request the PBGC to apply all or part of an overpayment toward payment of those unpaid prior year amounts.

      If you request payment of a refund by electronic funds transfer, we will make the transfer through the automated clearing house (ACH) system.

      Please note that ERISA does not provide for us to pay interest on premium overpayments.

8. Recordkeeping Requirements; PBGC Audits

   Plan administrators are required to retain all plan records that are necessary to support or validate PBGC premium payments. The records must include calculations and other data prepared by the plan's actuary or, for a plan described in section 412(i) of the Internal Revenue Code, by the insurer from which the insurance contracts are purchased. The records are to be kept for six years after the premium due date.

   Records that must be retained include, but are not limited to, records that establish the number of plan participants and that reconcile the calculation of the plan's unfunded vested benefits with the actuarial valuation upon which the calculation was based. Records retained pursuant to this paragraph must be made available or submitted to the PBGC upon request.

   We may audit any premium payment. If we determine upon audit that the full amount of the premium due was not paid, late payment interest charges under §4007.7 of the premium regulations and late payment penalty charges under §4007.8 of the premium regulations will apply to the unpaid balance from the premium due date to the date of payment. (See B.7.a., p. 16, for more information on penalties and interest for late payment of premiums.) If, in our judgment, the plan's records fail to establish the number of participants with respect to whom premiums were required for any premium payment year, we may rely on data we obtain from other sources (including the Internal Revenue Service and the Department of Labor) for presumptively establishing the number of plan participants for premium computation purposes. Similarly, if, in our judgment, the plan's records fail to establish that the unfunded vested benefits were the amount reported in the premium filing, we may rely on data we obtain from other sources for estimating the amount of unfunded vested benefits for premium computation purposes.

   In addition to penalties for late payment of premiums, we may assess a penalty under section 4071 of ERISA for failure to furnish premium-related information by required due dates.

If you check the box in item 1(c) of Schedule A to indicate that you are using the modified Alternative Calculation Method (ACM) for plans terminating in distress or involuntary terminations, you must follow the instructions in this Part F, which modify the instructions for items 2 through 6 of Schedule A in Part E for ACM filers. The date you enter in item 1 of Schedule A is referred to in this Part F as the "DOPT."

The item-by-item instructions for items 2 through 6 of the Schedule A are the same as under the Alternative Calculation Method (See Part E of these instructions) subject to the modifications described below. However, under this Distress/Involuntary Termination Method, you will generally be using data from a Schedule B for a plan year earlier than the plan year preceding the premium payment year.

Most of the relevant item numbers on Schedule B for 1994 and earlier years are different from those on the 1995 through 2004 Schedule B, as indicated in the table below. Corresponding Schedule B Item Numbers

If you are able to use the same Schedule B as under the Alternative Calculation Method, which is the 2004 Schedule B for the 2005 premium payment year, the Distress/Involuntary Termination Method and the Alternative Calculation Method are almost identical; the only difference is that the Distress/Involuntary Termination Method may result in a smaller adjustment for accruals during the plan year preceding the premium payment year, since it would adjust only up to the DOPT. (See Modification 2 below.) Thus, if you use the Distress/Involuntary Termination Method with a Schedule B for the plan year preceding the premium payment year, you may ignore Modifications 1 and 3 below, and apply only Modification 2 to the Alternative Calculation Method.

The modifications, which are generally designed to reflect and to adjust for the fact that the Schedule B data were determined as of an earlier date, are as follows:

Modification 1.

Substitute the first day of the plan year of the Schedule B you are using for the first day of the Alternative Calculation Method Schedule B year.

Example A calendar year plan is paying its 2005 premium. The plan has a DOPT of September 1, 2004, and a premium snapshot date of December 31, 2004, and is using data from its 2003 Schedule B to calculate the variable-rate portion of its premium. For this plan --

• the determination date to be entered in item 2 must be January 1, 2003;
• the Plan Value of Vested Benefits to be entered in the "Value" column of item 2(a), as well as the Adjusted Value of Vested Benefits to be entered in item 2(b), must be determined as of January 1, 2003;
• the determination date to be entered in item 3 must be January 1, 2003;
• the Value of Plan Assets to be entered in item 3(a) must be determined as of January 1, 2003;
• the Contribution Receivables to be entered in item 3(b) are those that were included as receivables in the item 3(a) entry as of January 1, 2003;
• the Discounted Paid Contributions to be entered in item 3(c) are those contributions for plan years prior to the premium payment year that were either included as receivables, or not included (as receivables or otherwise), in the item 3(a) entry as of January 1, 2003 (provided they were paid on or before the earlier of the date the 2003 premium is due or paid)
• the Discounted Paid Contributions to be entered in item 3(c) must be discounted from the date paid back to January 1, 2003;
• the Adjusted Value of Plan Assets to be entered in item 3(d) must be determined as of January 1, 2003;
• if the plan has 500 or more participants, the Significant Events (if any) to be reflected in item 4 are those occurring between January 1, 2003, and December 31, 2004; and
• the Adjusted Unfunded Vested Benefits to be entered in item 4 is determined as of December 31, 2004.

Modification 2.

Substitute "the sum of 1 plus the product of .07 times the number of years (rounded to the nearest hundredth of a year) from the date of the Schedule B data to the DOPT" for "1.07" (the benefit accrual adjustment factor) in the Item 2(b) interest adjustment "Relief Rule" and the interest rate adjustment formula under the "Item 2(b) Procedure."

To compute the number of years, count the number of days from and including the date of the Schedule B data to and including the DOPT and divide by 365.

Under the Alternative Calculation Method, the benefit accrual adjustment factor of 1.07 referred to under the "Item 2(b) Procedure" serves as a surrogate for accruals during the plan year preceding the premium payment year. This surrogate assumes that there has been exactly one year of accruals (e.g., in the case of a calendar year plan paying its 2005 premium, accruals from January 1, 2004, through December 31, 2004). Under the Distress/Involuntary Termination Method, however, the accrual period will run from the date of the Schedule B data to the DOPT.

Formulas and associated directions not reproduced here) (Please see: the official PBGC directions for the relevant formulas.)

Modification 3.

Use "the number of years (rounded to the nearest hundredth of a year) between the date of the Schedule B data and the premium snapshot date" as the value for the exponent "Y," in the time adjustment formula uner the "Item 5 Procedure" rather than the value described in the "Item 5 Procedure."

To compute the number of years, count the number of days from and including the date of the Schedule B data to and including the premium snapshot date and divide by 365 in Step 2 of the "Item 5 Procedure."

Under the Alternative Calculation Method, the exponent "Y," in the time adjustment formula in Step 2 of the "Item 5 Procedure" represents the length of time from the date of the Schedule B data to the premium snapshot date. Because that length of time is generally exactly one year under the Alternative Calculation Method, Y is defined simply as (generally) being "equal to 1." The length of time under the Distress/Involuntary Termination Method will generally be longer than 1 year. Thus, using the rule stated in Modification 3, and continuing with the hypothetical plan in Modification 1, "Y" would equal 2 (the number of years between January 1, 2003 and December 31, 2004).

1. Introduction to My PAA

   My Plan Administration Account (My PAA) is a secure, Web-based application that enables you to electronically submit premium filings and payments to PBGC.

   Using My PAA, you can easily and accurately submit any type of PBGC premium filing for plan years beginning in 2004 and later. In addition, by setting up an "e-filing team" within My PAA, you can collaborate online with your colleagues or clients to prepare, review, authorize, and submit filings with payments. Team members electronically "route" filings to each other for input and authorization.

   Advantages of e-filing include:

   • Filing data validation ensures accuracy.
   • Automation features ease filing preparation.
   • Electronic receipts are provided instantly upon filing submission.
   • Filings reach PBGC in seconds, rather than days.
   • Using only the Web and e-mail, practitioner teams can prepare, review, authorize, and submit filings with payments.
   • Practitioners can track multiple plans and filings in real time.
   • Premium payments can be sent by one of three convenient electronic payment methods: ACH, Electronic Check, or Credit Card.
2. How to Get Started with My PAA
   1. Filing Coordinator for a Plan is Determined

      Each plan that will use My PAA to prepare and submit premium filings online must determine the person who will be responsible for coordinating the overall online filing process, which includes setting up the plan within My PAA and inviting others to join the plan's e-filing team. This person is called the Filing Coordinator.

      Once the Filing Coordinator for a plan has been determined, he or she registers to use My PAA as described in Step 2 below. If you will serve as the Filing Coordinator for several plans, you will be able to add other plans to your account after you complete the registration process for the first plan (see Step 4 below). You need only one account, to which you can add an unlimited number of plans.

      Note that if you will not be fulfilling the role of Filing Coordinator, then you should not register to use My PAA as described in Step 2 below. You should wait until you receive an e-mail from My PAA on behalf of the Filing Coordinator with instructions on how to register (see Step 3 below).

   2. Filing Coordinator Registers to Use My PAA

      When you register to use My PAA, you will provide information about yourself and one of the plans for which you will be the Filing Coordinator. After you complete the registration process, you will have a My PAA account that will include the plan you submitted when you registered.

      You're my PAA account will include the following information:

      • Your name and e-mail address;
      • The User ID and Password you will use to log in to My PAA;
      • The pension plan(s) for which you contribute filing information (you can add other plans to your account once you complete registration for the first plan);
      • The permissions, or abilities, you have for each of these plans; and
      • A security key (a secret question and answer combination that only you know) that you will use to complete certain transactions in My PAA, such as signing a filing.

      To register for My PAA:

      1. Access PBGC's website (www.pbgc.gov/mypaa) and click on the link "New users click here for more information or to sign up."
      2. Read through the introduction information provided and click the "Filing Coordinator Sign Up Here" button at the bottom of the page.
      3. Enter and submit the following information:
         • Your e-mail address;
         • Your employer's name and contact information;
         • The name and contact information of your plan's (or one of your plans') plan administrator and plan contact; and
         • Information from the plan's last premium filing (the participant count reported and the premium paid).
      4. Receive your temporary user ID and password via e-mail and follow instructions to establish your permanent user ID and password.
      5. When you are finished, you will see your "home page" that will list the plan you submitted when with your registration.
      6. Once you have registered to use My PAA, you can:
         • Proceed to Step 3 where you will build the team of professionals who will use My PAA to contribute to the plan's filing; or
         • Proceed to Step 4 to add other pension plans to your account for which you are the Filing Coordinator.
   3. Filing Coordinator Organizes an E-Filing Team and Team Members Establish a My PAA Account

      The completion of a typical filing, including signatures and payment authorizations, often requires input from two or more people. Where paper filings are routed from person to person within an office or mailed between offices, e-filings can be accessed through My PAA by anyone who has been authorized to do so.

      This group of people that will use My PAA to provide input for a specific plan's premium filings is called that plan's "e-filing team." E-filing teams are established by the Filing Coordinator.

      Once a Filing Coordinator registers to use My PAA, he or she can invite other people to use My PAA to contribute to a plan's premium filings. Using My PAA, the Filing Coordinator enters information for each person who needs to be on the team, assigning them one or more "e-filing permissions," which determine the e-filing tasks that each person will be allowed to perform for the plan. These tasks include:

      • Providing a plan administrator signature for an e-filing;
      • Providing an enrolled actuary signature for an e-filing;
      • Providing payment authorization for an e-filing; and
      • Electronically submitting e-filings with e-payments to PBGC.

      To invite other people to be on your plan's e-filing team:

      1. Access PBGC's website (www.pbgc.gov/mypaa) and enter your user ID and password.
      2. Click the "Invite a Practitioner" button next to the applicable plan.
      3. Enter and submit the following information for the person you are inviting:
         • First and last name;
         • Phone number;
         • E-mail address; and
         • Permissions that person should have for the plan.
      4. Click the "Invite Practitioner" button.
      5. My PAA will send that person an e-mail to tell them that they have been invited to contribute to your plan's premium filings.

         Once the Filing Coordinator enters the applicable information, My PAA will send the invitee an e-mail on behalf of the Filing Coordinator. If the invitee does not already have a My PAA account, the e-mail will include instructions on how to establish a My PAA account. When the account is established, the plan for which the person was invited will be listed on the "home page." If the invitee already has a My PAA account, the plan will be listed on the "home page" the next time he or she accesses My PAA.

   4. Filing Coordinator Adds Any Additional Plans to Account

      Once you have registered to use My PAA (either by registering as a Filing Coordinator or by being invited by a Filing Coordinator), you can add other plans to your account. You should only add plans for which you will fulfill the role of the Filing Coordinator. If you are not the Filing Coordinator for a plan, that plan can only be added to your account when the Filing Coordinator invites you to join that plan's e-filing team.

      To add each additional plan:
      1. Access PBGC's website (www.pbgc.gov/mypaa) and enter your user ID and password.
      2. Click the "Add Plan as Filing Coordinator" link in the Plans section of your home page.
      3. Complete the information requested, for example, about the plan (the participant count and amount paid on the last filing), plan administrator, and plan contact.
      4. If appropriate, invite others to contribute to each plan's premium filings by clicking the "Invite a Practitioner" button for each person and completing the information requested.
3. How Filing Team Members Prepare and Submit Premium E-Filings and E-Payments
   1. Initiating a draft e-filing

      Once the Filing Coordinator has set up the plan's e-filing team, any team member can initiate a draft e-filing for the plan. My PAA will walk you through a step-by-step process to create this draft. On the first step, you will identify the type of filing to be submitted (estimated or final) as well as the type of plan (singleemployer or multiemployer) for which the filing is being submitted. The information entered in each step determines the content of the successive steps, for example:

      • If the selections made on the first step are for an estimated filing for a single-employer or multiemployer plan, the successive steps will request the same information as the paper Form 1-ES.
      • If the selections made on the early steps are a final filing for a single employer plan that is exempt from the variable rate premium, the later steps will request the same information as the paper Form 1-EZ.

      The person who starts the e-filing need not enter all of the information requested. That person should only complete as much information as possible and then save the draft e-filing. Any missing information can be entered later by the appropriate person (e.g., the actuary).

   2. Routing, reviewing, and signing the e-filing

      Once a draft e-filing is started, e-filing team members can electronically "route" it to each other so that individual contributions can be made to it. The person routing the filing to another member of the e-filing team can include comments and instructions for the person to whom the filing is being routed.

      When a filing is routed to another person, My PAA will send that person an e-mail (with instructions if entered) notifying them that they have been routed a filing requiring them to take action and that they are now "holding" that filing. Only the team member who "holds" a filing is able to take action on it. Actions include editing the filing, signing it as a plan administrator or enrolled actuary, authorizing payment for it, and submitting it to PBGC.

      All signatures and payment authorizations for an e-filing are acquired electronically from appropriate e-filing team members. Once a draft e-filing is created, My PAA will list the required signature(s) and payment authorization that must be obtained before it can be submitted to PBGC. Those e-filing team members who have been granted permission by the Filing Coordinator to electronically sign the e-filing or electronically authorize payment for it will do so from within My PAA.

      Note that the Filing Coordinator has the option of taking back possession of an e-filing from any of the other team members if the Filing Coordinator believes this is necessary.

   3. Selecting an electronic payment method

      If the premium filing to be submitted to PBGC includes a premium amount due, you must use My PAA to make this payment. This means that an e-filing team cannot send paper checks or Fedwires to pay for e-filings. Rather, all e-filings must be paid using one of the following three electronic payment methods, which are selected from within My PAA:

      Automated Clearing House (ACH) -- This payment method involves the electronic transfer of funds from an account you specify to a PBGC account. You specify the account by entering the account number and bank routing code.

      Electronic Check -- This is the electronic equivalent to writing a paper check. It involves entering the check number of a (voided) paper check to conduct an electronic transfer of funds. Funds are transferred from the plan sponsor's checking account to a PBGC account.

      Credit Card -- My PAA currently accepts Visa and MasterCard as payment options. Please note that when you use a credit card to pay a premium, you will be charged a convenience fee (which is passed on to the credit card processor) of 2.87 percent of the total premium amount and that there is a $99,999.99 limit (including the convenience fee).

      Whichever one of the three e-payment methods is ultimately selected, premium payment funds are securely transferred through the Internet when the e-filing is submitted to PBGC.

   4. Submitting the completed e-filing with payment All of the following conditions must be fulfilled before My PAA will allow an e-filing team to electronically submit an e-filing to PBGC:
      • All required information has been entered into the e-filing;
      • An e-filing team member with plan administrator permission has provided his or her electronic signature for the e-filing;
      • If a payment is due, an e-filing team member with permission to authorize premium e-payments has provided his or her electronic authorization to make the premium payment; and
      • If appropriate, an e-filing team member with enrolled actuary permission has provided his or her electronic signature for the e-filing.

      Once all of the conditions are met, the Filing Coordinator or the person who has been authorized as the Plan Administrator can submit the e-filing and e-payment (if one is due) to PBGC.

   5. Receiving an online receipt

      Once an e-filing and any associated e-payment are submitted to PBGC, My PAA will display an electronic receipt. This receipt includes the date and time the e-filing was received by PBGC, a confirmation number, and data entered into the e-filing. This online receipt can be accessed in My PAA by any e-filing team member. (Note: The "Received Date and Time" that appears on the receipt is the exact moment that the e-filing's data "hits" PBGC's server in Washington, D.C. Rarely will it take more than a few minutes for this data to hit our server after being submitted.)

4. About My PAA Personal Accounts

   Each individual who contributes to e-filings for one or more plans must establish a personal account in My PAA. Personal accounts are established only once, but information can be added to them as needed.

   There are two ways that a personal account can be established:

   • If an individual will function as a plan's Filing Coordinator, that individual's personal account is established as a result of registering to use My PAA. Filing Coordinators are the individuals responsible for coordinating the online creation and submission of a plan's e-filings.
   • An individual will establish a personal account if invited by a plan's Filing Coordinator to join that plan's e-filing team. The individual's account is established when the individual accepts the Filing Coordinator's invitation and completes the first-time log-in process. If you have not been selected to serve as a Filing Coordinator, but you anticipate using My PAA as a member of an e-filing team, you must wait for a Filing Coordinator to invite you to register for an account.

     Every individual's personal account functions the same way, despite the way it was established. Every individual's personal account keeps track of the following information:

     • The individual's log-in information (User ID and Password).
     • The individual's security key (a secret question / secret answer combination).
     • The names of the plan or plans for which the individual serves as an e-filing team member. An individual can serve as an e-filing team member for an unlimited number of plans. Since personal accounts are established only once, an individual does not establish a new account for each plan to which the individual will make a contribution. Rather, the additional plans for which the individual becomes an e-filing team member are simply added to the individual's existing account.
     • The e-filing permissions that the individual has for each of his or her plans. An individual's e-filing permissions determine what e-filing tasks the individual can perform as a member of each e-filing team in which the individual participates. An individual's e-filing permissions may be different for each of the individual's plans. For example, an individual may have permission to sign e-filings and approve e-payments as a member of Plan A's e-filing team, but only have permission to approve e-payments as a member of Plan B's e-filing team.
5. Questions about My PAA?

   If you have questions about e-filing with My PAA, please send an e-mail message to premiums@pbgc.gov or call PBGC's toll-free practitioner number, 1-800-736-2444, and select the "premium" option. Note: TTY/TDD users may call the Federal Relay Service toll-free at 1-800-877-8339 and ask to be connected. To get started using My PAA, please visit PBGC on the Web at www.pbgc.gov

You may use optional "substitution factors" in the Alternative Calculation Method interest rate adjustment formula to replace the term ".94(RIR - BIR)." The use of the factors is not required; it is optional. The instructions for the formula and for use of the tables below are in Part E, item 2.

Use the substitution factor in Table A when RIR is equal to or greater than BIR rounded to the nearest hundredth.

Use the substitution factor in Table B when BIR, rounded to the nearest hundredth, is greater than RIR.

In addition to being able to obtain PBGC premium forms and instructions from the PBGC (see item 3. under "CONTACTS" on p. ii), you may obtain our forms and instructions through the following offices of the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor:

San Francisco 94105
71 Stevenson Street
Suite 915
(415) 975-4600

Pasadena 91106
1055 E. Colorado Boulevard
Suite 200
(626) 229-1000
	

Plantation 33324
8040 Peters Road
Building H, Suite 104
(954) 424-4022
	

Atlanta 30303
61 Forsyth Street SW
Suite 7B54
(404) 562-2156
	

Chicago 60606
200 West Adams Street
Suite 1600
(312) 353-0900
	

Fort Wright 41011-2664
1885 Dixie Highway
Suite 210
(859) 578-4680
	

Silver Spring 20910
1335 East West Highway
Suite 200
(301) 713-2000
	

Boston 02203
JFK Building
Room 575
(617) 565-9600
	

Detroit 48226-3211
211 West Fort Street
Suite 1310
(313) 226-7450
	

Kansas City 64105-5148
1100 Main Street
Suite 1200
(816) 426-5131

St. Louis 63103
1222 Spruce Street
Room 6.310
(314) 539-2693
	

New York City 10004
33 Whitehall Street
Suite 1200
(212) 607-8600
	

Philadelphia 19106-3317
Curtis Center
170 S. Independence Mall
West
Suite 870 West
(215) 861-5300
	

Dallas 75202-5025
525 South Griffin Street
Room 900
(214) 767-6831
	

Seattle 98101-3212
1111 Third Avenue
Suite 860
(206) 553-4244