We are enclosing the 2006 Premium Payment Package containing forms and instructions for your final premium payment to the Pension Benefit Guaranty Corporation (PBGC) for the 2006 plan year. There are two important items to note for 2006: changes in the flat-rate premium (and potentially also in the variable-rate premium), and the phasing in of mandatory electronic premium filing.

1. PBGC's Web site, www.pbgc.gov, contains pension plan information of interest to the plan administrator and practitioner, such as electronic premium filing, current and prior premium filing booklets, frequently asked questions, interest rates, regulations, etc.
2. Submit electronic premium filings (including electronic amended filings) through "My Plan Administration Account" (“My PAA”) on PBGC's Web site (www.pbgc.gov). Follow instructions in My PAA for submitting premium payments.
3. For a paper premium filing (including a paper amended filing):
   1. If you use mail, send your form(s) 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
      JPMorgan Chase Bank, N.A.
      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(s).
   4. If you pay by electronic funds transfer, send the Payment to:

      JPMorgan Chase Bank, N.A.
      ABA: 071000013
      Account: 656510666
      Beneficiary: PBGC
      Reference: "EIN/PN: XX-XXXXXXX/XXX
      	   PYC: MM/DD/YY"

4. For all premium-related correspondence other than premium filings, including premium filing questions (for electronic or paper filings), requests for exemption from the requirements to file electronically, requests for booklets or forms, address changes, requests for refunds (that are not submitted on premium filings), 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 48277-0840

   2. If you send your correspondence by delivery service, address it to the same address as in 3.b. above.
   3. Call: 1-800-736-2444 or (202) 326-4242
   4. Fax: (202) 326-4250
   5. Email: premiums@pbgc.gov
      
5. 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
   	

6. For assistance on coverage determination or plan termination:

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

7. If you have a complaint about the service you have received or still need assistance after calling our practitioner telephone numbers listed in items 4 and 6 (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
   

8. For assistance with Participant Notice questions:

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

9. For questions regarding our Premium Compliance Evaluation Program:

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

10. For vendor requesting approval of automated forms, 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

11. For software developers requesting approval of XML files produced by private-sector software for use in My PAA, follow submission instructions on PBGC's Web site (www.pbgc.gov).

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 have rewritten our premium statement of account cover letters and begun sending them more promptly. We are also developing a new premium accounting system that we expect to support faster resolution of questions and timelier statements of account and premium refunds. In response to your many requests, we are expanding our electronic premium filing system to accommodate third-party software and multi-year filings. Further, we have increased both training and monitoring at our call center in order to provide the best possible service when you call us. We hope that these efforts will mean a positive experience for you whenever and however you interact with PBGC.

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.

Shown below is the estimated burden associated with the preparation and submission of a final premium filing -- either electronically or by 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). 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 or the electronic filing process simpler, please send your comments to Pension Benefit Guaranty Corporation, Legislative & Regulatory Department, 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 Events and Certain Other Notification Requirements (29 CFR Part 4043). (From time to time, we also publish technical guidance on our Web site, www.pbgc.gov about reportable events filing obligations.) Failure to give PBGC timely notice may result in assessment of penalties under section 4071 of ERISA.

NOTE: Small plans are not exempt from the reportable events rules, although there are waivers and other special rules for small plans in some cases.

NOTE: The PBGC provides Form 10 and Form 10-ADV for notifying PBGC of reportable events. These forms are available on the PBGC's Web site (www.pbgc.gov) and can be downloaded.

Reminder to Plan Administrators
About 2006 Participant Notice Requirement

The plan administrator of a single-employer plan may be required to issue a Participant Notice for the 2006 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 2006 plan year. The PBGC will issue a Technical Update in mid-2006 describing the requirements for the 2006 Participant Notice and reflecting any legislative changes for 2006.

The premium forms for the 2007 plan year (the next plan year) will include a certification about the Participant Notice for the 2006 plan year (this plan year). (This plan year's premium forms include a certification about the Participant Notice for the 2005 plan year.)

The 2006 Participant Notice is due two months after the due date for the 2005 Form 5500 series, including extensions. Thus, the 2006 Participant Notice is due during the 2006 plan year. For calendar year plans, the 2006 Participant Notice must be given by October 2, 2006, if the 2005 Form 5500 due date is August 1, 2006; by November 15, 2006, if the 2005 Form 5500 due date is September 15, 2006; or by December 18, 2006, if the 2005 Form 5500 due date is October 16, 2006. (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 2005 plan year or for the 2006 plan year is exempt from having to provide a Participant Notice for the 2006 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 2006 Participant Notice (to be issued in mid-2006). The Technical Update will include a worksheet to help plan administrators determine whether they must issue the 2006 Participant Notice.

Further information related to Participant Notice requirements is available on the PBGC's Web site (www.pbgc.gov)

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 Web site. If your plan had 500 or more participants for the prior plan year, any 2006 premium filing that you submit on or after the effective date for mandatory premium e-filing (expected to be July 1, 2006) must be filed electronically. Electronic filing will be mandatory for all plan years beginning after 2006. Electronic filing means your filing is posted faster and more accurately. The instructions for e-filing your premiums are included in this booklet (see p. 45).

The PBGC may grant exemptions from the e-filing requirement for good cause in appropriate circumstances. See B.3.g., pp. 12-13. If you are not required to e-file for 2006, or you have an exemption, and you are sending us a paper filing, please use the premium filing addresses in item 3. under CONTACTS, p. ii.

In addition, please remember:

1. 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 correspondence other than premium filings to the correspondence addresses in item 4. under CONTACTS, p. ii.
4. Notify PBGC of EIN/PN changes. EIN/PN changes should be reported in your premium filing.

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. 16, for more information.

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

If you are filing for a large plan, remember that an overpayment claimed as a credit on your estimated filing must also be claimed on your final filing.

Remember that your paper 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 paper 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 4. under "CONTACTS," p. ii, to send us correspondence other than your premium filing.

In addition, a paper 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).

Part A INTRODUCTION AND DEFINITIONS

1. What's New

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   The PBGC expects to publish in early 2006 a final rule making electronic filing mandatory for 2006 premium filings made on or after July 1, 2006, for large plans (plans that were required to pay premiums for 500 or more participants for the plan year preceding the premium payment year). See the PBGC's Web site (www.pbgc.gov) for premium filing instructions for large plans. See Part G for an explanation of how to e-file. The PBGC may grant exemptions from the electronic filing requirement for good cause in appropriate circumstances (see Part B.3. of this booklet).

   Electronic filing is expected to become mandatory under the final rule for all plans beginning with the 2007 plan year. Thus, this may be the last year that we will send paper forms and related instructions. Starting in 2007, we expect to revise our communications to you to be more in line with the electronic submissions that you will be preparing each year.

   If you make a paper premium filing for a large plan after electronic filing becomes mandatory (expected to be July 1, 2006), you must indicate in new item 3.d. on Form 1 or Form 1-EZ whether the PBGC has granted the plan an exemption from electronic filing. If not, you must attach an explanation.

   For 2005 only, we added a check box to the Participant Notice information item on Form 1-EZ and Schedule A 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). That check box is no longer needed and has been removed from the 2006 forms.

   In item 1 of Schedule A, the separate check boxes for large and small plans using the Alternative Calculation Method (ACM) have been eliminated.

   We have corrected the instructions for item 6(a) on Form 1-EZ and Form 1 to make it clear that the effective date (not the adoption date) should be entered for a retroactively adopted new plan that elects to use the adoption date as the first day of its plan year.

   Under recently enacted legislation, the per-participant flat-rate premium for 2006 is $30 for single-employer plans and $8 for multiemployer plans.

   Congress is also considering other legislation that might further change flat-rate premiums and change variable-rate premiums as well (including the definition of the Required Interest Rate that is used to determine the variable-rate premium). See the definitions of "Flat-rate premium," "Variable-rate premium," and "Required Interest Rate" (A.7., pp. 4-6) for more information.

   In 2004, we launched an electronic premium filing system called My Plan Administration Account (My PAA). The data entry and editing screens in My PAA enable practitioners to electronically create, sign, and submit premium filings and payments to PBGC for plan years beginning in 2004 or later years. In 2005, we added another electronic filing method to MyPAA: direct uploading of premium filings prepared with private-sector software. E-filing has many advantages over paper submissions, including improved data accuracy, easier filing preparation, and confirmation that the filing and payment were received by PBGC. In addition, use of My PAA's premium information editing screens enables you to share electronic access to filings (which eliminates manual routing and mailing) and facilitates e-mail notification of required actions to other e-filing team members. Please see Part G, p. 45, for more information about how to e-file premiums for 2006. For additional details or to set up an account within My PAA, please access PBGC's Web site (www.pbgc.gov) and go to the page that provides new users with more information and the ability to sign up for My PAA.

2. Introduction

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   Payment of premiums to the Pension Benefit Guaranty Corporation (PBGC) is 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, typically in the tenth month of the year. Large plans (those with 500 or more participants for the prior plan year) must pay the flatrate premium earlier in the year. The PBGC expects to publish in early 2006 a final rule making electronic filing mandatory for 2006 premium filings made on or after July 1, 2006, for large plans (plans that were required to pay premiums for 500 or more participants for the plan year preceding the premium payment year). (See Part G of this booklet). The PBGC may grant exemptions from the electronic filing requirement for good cause in appropriate circumstances (see Part B.3. of this booklet). For smaller plans, electronic filing remains optional for 2006. Electronic filing is expected to be required for all plans for plan years beginning after 2006 under the final rule.

   This booklet contains 2006 paper premium filing forms and filing instructions. Plans filing on paper will use Form 1 or Form 1-EZ (whichever applies to the plan); 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. Plans filing electronically may use the instructions in this booklet as guidance for preparing their electronic filings. (Filing instructions for large plans paying an estimate of the flat-rate premium are contained in a separate booklet.)

   Your premium filing will be considered improper if it is not made in accordance with the premium regulations and instructions, if you do not make any required premium payment, or if your filing is otherwise incomplete.

   Subparts 3 through 9 of this Part A tell you the definitions of special terms that are used in these instructions.

3. Definitions Relating to Laws

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   "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 filing procedures (including instructions, forms, and the My PAA electronic filing application) are prescribed under and implement the premium regulations.

4. Definitions Relating to Parties

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   "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.

5. Definitions Relating to Forms and Identifying Numbers

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   "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.

6. Definitions Relating to Dates

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   "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., 12/31/2005 for a calendar year plan's 2006 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 first-year 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, 2006, and ending August 31, 2007. The premium snapshot date is August 31, 2006.

   Example 2 An ongoing plan changes its plan year from a calendar year to a plan year that begins June 1, effective June 1, 2006. For the plan year beginning January 1, 2006, the premium snapshot date is December 31, 2005. For the plan year beginning June 1, 2006, the premium snapshot date is May 31, 2006.

   Example 3 A new calendar-year plan is adopted December 10, 2005, effective January 1, 2006. The premium snapshot date is January 1, 2006.

   Example 4 A new calendar-year plan is adopted February 18, 2006, retroactively effective as of January 1, 2006. The plan administrator may select either January 1 or February 18, 2006, 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, 2006, Plan B merges into Plan A (and the merger is not de minimis). Plan A's premium snapshot date is January 1, 2006. (Since Plan B did not exist at any time during 2006, it does not owe a premium for the 2006 plan year.)

   Example 6 Plan A has a calendar plan year. Effective January 1, 2006, 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, 2006. (Plan B's premium snapshot date also is January 1, 2006, 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 single-employer 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.

7. Definitions Relating to Premium Computations

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   "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 2006 (see Note below) is $30 for single-employer plans and $8 for multiemployer plans.

   The 2006 per-participant flat premium rate of $30 for single-employer plans and $8 for multiemployer plans was established under recently enacted legislation. Congress is also considering other legislation that might further change flat-rate premiums. We will make updated information about the flat premium rate available as we get it: check our web site (www.pbgc.gov) or call or write us (at the address and phone numbers in item 4. under "CONTACTS" on p. ii) for more information.

   "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 2006 is $9 for every $1,000 (or fraction thereof) of unfunded vested benefits.

   Note:As these instructions were being prepared, Congress was considering legislation that would change the manner of determining the variable-rate premium. We will make updated information about the variable-rate premium available as we get it: check our web site (www.pbgc.gov) or call or write us (at the address and phone numbers in item 4. under "CONTACTS" on p. ii) for more information.

   "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, 2005, the participant will be included in the participant count as of December 31, 2005 (because the cashout is deemed to occur on January 1, 2006, 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 2006 is December 31, 2005, a flat-rate premium must be paid for this participant for 2006.

   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 one-year break in service under the plan before December 31, 2005 (the premium snapshot date for the 2006 premium) if the individual left employment on February 1, 2005, and did not perform more than 500 hours of service during a computation period ending on November 30, 2005, even though December 31, 2005, comes before the first anniversary of the individual's separation from employment. This individual would not be included in the participant count for 2006.

   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, 2005. The PBGC would treat the individual as not being a participant for purposes of the plan's 2006 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 percent 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 percent 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 percent 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" (see Note below) under section 4006(a)(3)(E)(iii)(II) of ERISA is the "applicable percentage" (currently 85 percent) of the annual yield on 30-year Treasury securities for the calendar month preceding the calendar month in which the premium payment year begins. (The "applicable percentage" becomes 100 percent beginning with the first plan year to which the first new mortality tables issued under Code section 412(l)(7)(C)(ii)(II) apply. Under a proposed IRS rule published in the Federal Register on December 2, 2005 (at 70 FR 72260), such tables would not apply until 2007.)

   Note: The Pension Funding Equity Act of 2004 ("PFEA") temporarily changed 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 investment-grade corporate bonds. PFEA does not apply for plan years beginning in 2006. However, as these instructions were being prepared, Congress was considering legislation that could extend use of the PFEA rate for one more year. We will make updated information about the Required Interest Rate available as we get it: check our web site (www.pbgc.gov) or call or write us (at the address and phone numbers in item 4. under "CONTACTS" on p. ii) for more information.

   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.

8. Definitions Relating to Plan Types

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   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).

9. Definitions Relating to Plan Transactions

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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 flat-rate premium by the First Filing Due Date (no matter how many participants any of the transferor plans had for the prior year(s)) and its Final 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
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   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 and pay the premium due. Most private-sector 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 6. 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.

      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. 30)) 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 multiemployer or 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:

      i. 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.)

      ii. A trustee is appointed for the plan under ERISA section 4042.

      iii. The plan disappears by transferring all its assets and liabilities to one or more other plans in a merger or consolidation.

      iv. 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, 2005. On April 7, 2006, 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 2005 and 2006 plan years. (The 2006 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, 2006. On July 7, 2006, 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 2005 and 2006 plan years, because a trustee was not appointed until after the beginning of the 2006 plan year. (The 2006 premium may be prorated. See B.5., p. 13.)

2. When to File
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   NOTE: For disaster relief, see the instructions for the disaster relief check boxes on Form 1-EZ (p. 19) and Form 1 (p. 27).

   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:

      i. 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

      ii. 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).

      iii. 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 2006 premiums, the 2005 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 required information 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 variable-rate 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, 2005, and had 650 participants on that date. Since the plan was not required to pay premiums for 2004 (because it was not in existence then), it was not required to pay its 2005 flat-rate premium by the First Filing Due Date in 2005 (March 1, 2005). It was required to pay its 2005 flat-rate and variable-rate premiums by the 2005 Final Filing Due Date (October 15, 2005). As a new plan, its 2005 premium snapshot date was January 1, 2005 (the first day of the plan year). The 2005 flat-rate premium was based on a participant count of 650 as of January 1, 2005.

      The number of participants decreases during 2005, and the participant count on December 31, 2005, is 450. For 2006, the participant count (450) is determined as of December 31, 2005, the plan"s 2006 premium snapshot date. The plan must pay a flat-rate premium for 450 participants by the First Filing Due Date (February 28, 2006) because it was required to pay premiums for 650 participants for the preceding year (2005), determined as of January 1, 2005, its 2005 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 2006 premium payment year.

      2006
      Filing Due Dates
      Premium Payment	First Filing	Final FIling
      Year Begins	Due Date	Due Date
      01/01/2006	02/28/2006	10/16/2006*
      01/02 - 02/01/2006	03/31/2006	11/15/2006
      02/02 - 03/01/2006	05/01/2006*	12/15/2006
      03/02 - 04/01/2006	05/31/2006	01/16/2007*
      04/02 - 05/01/2006	06/30/2006	02/15/2007
      05/02 - 06/01/2006	07/31/2006	03/15/2007
      06/02 - 07/01/2006	08/31/2006	04/16/2007*
      07/02 - 08/01/2006	10/02/2006*	05/15/2007
      08/02 - 09/01/2006	10/31/2006	06/15/2007
      09/02 - 10/01/2006	11/30/2006	07/16/2007*
      10/02 - 11/01/2006	01/02/2007*	08/15/2007
      11/02 - 12/01/2006	01/31/2007	09/17/2007*
      12/02 - 12/31/2006	02/28/2007	10/15/2007

      *NOTE: If your filing is not made by this date, penalty and interest will be calculated from the last day of the month (for large plans' flat-rate premium payments) or the 15th of the month (for other premium payments) rather than the following business day -- e.g., from Sunday 10/15/2006 rather than Monday 10/16/2006, or from Saturday 4/30/2006 rather than Monday 5/1/2006.

   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:

      (i) The 15th day of the 10th full calendar month that begins on or after the first day of the premium payment year,

      (ii) The 15th day of the 10th full calendar month that begins on or after the day on which the plan became effective for benefit accruals for future service,

      (iii) 90 days after the date of the plan's adoption, or

      (iv) 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, 2005, and became effective for benefit accruals January 1, 2006. The Final Filing Due Date for the 2006 plan year is October 16, 2006.

      Example 2 A new plan is adopted on December 1, 2006, and has a July 1 - June 30 plan year. The plan became effective for benefit accruals for future service on December 1, 2006. The Final Filing Due Date for the plan's first year, December 1, 2006, through June 30, 2007, is September 17, 2007. (The 2006 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, 2006, with a retroactive effective date of January 1, 2006. If the plan administrator elects to use January 1, 2006, as the premium snapshot date, the Final Filing Due Date for the 2006 plan year is November 14, 2006 (90 days after the date of the plan's adoption). If the plan administrator elects to use August 16, 2006, as the premium snapshot date, the Final Filing Due Date for the 2006 plan year is June 15, 2007 (the 15th day of the tenth full calendar month that begins on or after August 16, 2006, the first day of the premium payment year). (If August 16, 2006, 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 18, 2006, 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 2006 plan year is January 16, 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:

      (i) 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

      (ii) 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, 2005, 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, 2006, and ending May 31, 2006. The plan always has fewer than 500 participants. The Final Filing Due Date for the short plan year is October 16, 2006. The Final Filing Due Date for the new plan year beginning on June 1, 2006, is March 15, 2007. (The premium for the short plan year may be prorated. See B.5, p. 13.)

      Example 2 By plan amendment adopted on January 3, 2007, and made retroactively effective to April 1, 2006, 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, 2006, is December 15, 2006. The Final Filing Due Date for the new plan year, which began April 1, 2006, is February 2, 2007, 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, 2006, and made retroactively effective to May 1, 2006, 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, 2006, and the Final Filing Due Date is November 15, 2006. The First Filing Due Date for the new plan year, which began May 1, 2006, is August 4, 2006, 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, 2007. (The premium for the short plan year may be prorated. See B.5, p. 13.)

   4. Saturday, Sunday, And Federal Holiday

      i. 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, 2006, normally would have a Final Filing Due Date of April 15, 2007. Because that day is a Saturday, the due date is Monday, April 16, 2007.

      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

      The PBGC expects to publish in early 2006 a final rule making electronic filing mandatory for 2006 premium filings made on or after July 1, 2006, for large plans (plans that were required to pay premiums for 500 or more participants for the plan year preceding the premium payment year). (Payment may be made separately by paper check if desired.) PBGC may grant an exemption from the requirement to make a premium filing electronically for good cause in appropriate circumstances. See B.3.g., below.

      If your plan is not subject to the electronic filing requirement (or if you have an exemption from the electronic filing requirement for this filing), you may make your premium filing and payment (if by check, with your premium form) by hand, mail, or commercial delivery service; electronic filing is optional. 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 Web site, 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. 45 for information about how to file electronically using My PAA, our 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 hand-delivered 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 Final Premium Filing And Annual Report (Form 5500 Series)

      i. Due Dates. For most plans, the deadline for the final premium filing and the annual report (Form 5500 series) will coincide. This occurs when a corporate plan sponsor applies for the 2½-month extension for filing its annual report (Form 5500). Note: An extension of time to file the annual report (Form 5500 series) beyond the final premium filing deadline does not extend the Filing Due Dates for PBGC premiums.

      Example A A plan whose plan year begins February 1 has a Final Filing Due Date of November 15. The corporate plan sponsor applies for the 2½-month extension for filing the annual report (Form 5500). This would make the due date for the annual report (Form 5500 series) (which is normally August 31 for a plan whose plan year begins February 1) also November 15.

      ii. Plan Years Covered By Filings. Although the filing deadlines for premiums and for the annual report (Form 5500 series) typically coincide, and the participant counts for premium purposes 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 premium filing is for the current plan year, and the annual report (Form 5500 series) is 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 the annual report (Form 5500), the 2006 final premium filing and 2005 annual report (Form 5500) must be filed by November 15, 2006.)

3. What to File
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   1. General

      The PBGC expects to publish in early 2006 a final rule making electronic filing mandatory for 2006 premium filings made on or after July 1, 2006, for large plans (plans that were required to pay premiums for 500 or more participants for the plan year preceding the premium payment year). See Part G. (Payment may be made separately by paper check if desired.) PBGC may grant an exemption from the requirement to make a premium filing electronically for good cause in appropriate circumstances. See B.3.g., below.

      If your plan is not subject to the electronic filing requirement (or if you have an exemption from the electronic filing requirement for this filing), and you choose to make a paper filing, 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

      (The flat-rate premium for a plan that was required to pay premiums for 500 or more participants for the plan year preceding the premium payment year must be paid by the First Filing Due Date. These filings may be made on an estimated basis. If you know all the information needed to make a final filing 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.)

   2. Cover letters

      Paper premium forms 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:

      i. Plans with no vested participants;

      ii. Section 412(i) plans;

      iii. Fully funded small plans;

      iv. Plans terminating in standard terminations; and

      v. 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 2006 Premium Payment Package. You may also use forms downloaded from the PBGC Web site (www.pbgc.gov) or computer-generated paper 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 premium instructions to you. See Part C, item 2, p. 19, or Part D, item 2, p. 27, and B.6.e., p. 16.)

      i. Premium Payment Package. We will mail a 2006 Premium Payment Package containing Form 1-EZ, Form 1, and Schedule A, and, as appropriate, a 2006 Estimated Premium Payment Package to the plan administrator of each ongoing plan for which a 2005 final premium filing was made, unless you have indicated that you do not want paper forms and instructions sent to you. We mail these packages to the plan administrator's address shown in the 2005 final premium filing. Our target dates for mailing premium instructions are seven months before the expected Final Filing Due Date for final premium instructions and two months before the expected First Filing Due Date for estimated premium instructions.

      If you are a plan administrator and you do not receive final premium instructions and/or instructions for estimated premiums, or if you need extra copies, contact us as described in item 4. under "CONTACTS" on p. ii.

      You may also obtain extra copies of the 2006 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 2006 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

      ii. 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 Web site (www.pbgc.gov).

      To achieve the best results when printing computer-generated 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.

      Any vendor requesting approval of automated forms may send a sample to the address in item 10. under "CONTACTS" on p. ii. Include 3 original forms produced by your software and a brief note requesting PBGC review of the forms.

      iii. 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 4. 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.

   7. Exemption From the E-Filing Requirement

      If you are subject to the requirement to file electronically, the PBGC may grant an exemption from the electronic filing requirement for good cause in appropriate circumstances. The PBGC will weigh each request for exemption on the basis of the particular facts and circumstances presented. In order to provide the PBGC adequate time to review and respond to an exemption request, the request should be submitted as early as possible, preferably at least 60 days before the filing due date. If for some reason an exemption request is not submitted before the filing due date and a paper filing is made, an exemption request should accompany the paper filing.

      If the PBGC has granted you an exemption from electronic filing for the 2006 final premium declaration, you may make your filing using the paper form(s) included with this booklet. Check the box in item 3(d) of Form 1 or Form 1-EZ to indicate that you have an exemption.

      If you do not have an exemption but you choose to make a paper filing in anticipation of an exemption, you may make your estimated filing using the paper form(s) included with this booklet, but you must check the box in item 3(d) of Form 1 or Form 1-EZ to indicate that you do not have an exemption, and you must provide an explanation. Either indicate when you submitted the exemption request to which the PBGC has not yet responded, or attach your exemption request. If you do not receive the anticipated exemption, your paper filing will not satisfy the electronic filing requirement.

      Failure to comply with the electronic filing requirement without an exemption is subject to penalty under section 4071 of ERISA.

      Addresses for exemption requests (and for questions regarding exemption requests) are in item 4. under "CONTACTS" on page ii.

      Addresses for paper filings and related premium payments are in item 3. under "CONTACTS" on page ii.

4. Where to File
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   1. Where to File Forms.

      i. Mail Service. Mail your paper premium form(s) 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).

      ii. Delivery Service. Alternatively, if you use a delivery service that does not deliver to a P.O. Box, your paper premium form(s), along with your premium payment (if you pay by check), may be hand-delivered to:

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

   2. Where to Send Payments.

      i. Checks. If you pay by check, write the EIN/PN (from item 3(a) and (b) of Form 1-EZ or Form 1) and the date the premium payment year commenced (PYC) on the check and send the check with your premium form(s) to the applicable address above.

      ii. Electronic funds transfers. If you pay by electronic funds transfer, make the transfer to:

      JPMorgan Chase Bank, N.A.
      ABA: 071000013
      Account: 656510666
      Beneficiary: PBGC
      Reference: "EIN/PN: XX-XXXXXXX/XXX
                 PYC: MM/DD/YY"
      

      Report the EIN/PN from item 3(a) and (b) of Form 1-EZ or Form 1 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." 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
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   a. 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).

   b. 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, 2006. Assume that your premium for the plan year beginning January 1, 2006, 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, 2006. 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 2006 -- 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 2006), which you would enter in item 15(b) of Form 1- EZ or Form 1 for the plan year beginning January 1, 2006. 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.

   c. How to request a partial refund. To request a partial refund, write promptly, under separate cover, to the address in item 4.a. or 4.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.

   d. 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.

   e. For proration purposes, a terminating plan's final (short) plan year is treated as ending on --

   i. for a multiemployer plan that distributed all its assets pursuant to section 4041A of ERISA, the date the distribution is completed; or

   ii. 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.

   f. Examples. The following examples illustrate the proration of premiums.

   Example 1 A new plan is adopted on December 1, 2006, and has a July 1 - June 30 plan year. The plan became effective for benefit accruals for future service on December 1, 2006. The plan administrator may prorate the 2006 flat-rate premium and pay for only seven months (December 2006 - June 2007). 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 2006.

   Example 2 By plan amendment adopted on December 1, 2005, 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, 2006, and ending May 31, 2006. The plan administrator may prorate the premium for the short plan year and pay for only five months (January - May 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 June - December 2006.

   Example 3 On October 15, 2006, the plan administrator of a calendar year plan pays the plan's premium for the plan year beginning January 1, 2006. The plan administrator expects a plan amendment to be adopted in November 2006, and made retroactively effective to February 1, 2006, 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, 2006, 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 2006). (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 2006.

   Example 4 By plan amendment adopted on June 5, 2006, and made retroactively effective to April 1, 2006, 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, 2006, and ending March 31, 2006. The plan administrator may prorate the premium for the short plan year and pay for only three months (January - March 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 April - December 2006.

   Example 5 A calendar year plan terminates in a standard termination with a termination date of September 30, 2005. On April 7, 2006, assets are distributed in satisfaction of all benefit liabilities. The plan has a short plan year ending April 7, 2006. The plan administrator may prorate the 2006 premium and pay for only four months of 2006. Alternatively, the plan administrator may pay a full year's premium and request a refund for the period of May - December 2006.

   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, 2006. On July 7, 2006, a trustee is appointed to administer the plan under ERISA section 4042. The plan has a short plan year beginning July 1, 2006, and ending July 7, 2006. The 2006 premium may be prorated by taking a credit for 11/12 of the 2006 plan year (for the period of August 2006 - June 2007). Alternatively, a full year's premium may be paid and a refund requested for the period of August 2006 - June 2007.

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

      If you sent in your payment without filing the Form 1-EZ or Form 1 as applicable, send the correct form to the address in item 3.a. or 3.b. under "CONTACTS" on p. ii.

   2. Filing Form Without Making Required Payment

      If you sent us Form 1-EZ or Form 1 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 3.a. or 3.b. under "CONTACTS" on p. ii. If you make your payment by electronic funds transfer, make the transfer as described in item 3.d. under "CONTACTS" on p. ii.

      Report the EIN/PN from item 3(a) and (b) of Form 1-EZ or Form 1 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 2006 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 2006 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. 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 3. under "CONTACTS" on p. ii.

   4. Amended Filing -- Premium Overpayment

      If you discover after you have filed the 2006 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 for single-employer plans, even if no Schedule A data have changed) promptly to the address in item 3. under "CONTACTS" on p. ii. If you want your refund paid by electronic funds transfer, you must provide the necessary information in item 17.

      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. 27) 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 4. under "CONTACTS" on p. ii.

7. Underpayments And Overpayments
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   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 Web site (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. Subject to this cap, the penalty is a percentage of the unpaid amount for each month (or portion of a month) it remains unpaid with a minimum penalty of $25. 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 4.a. or 4.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 4.a. or 4.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. 16, 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 PBGC 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 a flat-rate premium payment by the First Filing Due Date 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 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 flat-rate premium, or

         2. an amount equal to the participant count for the year before the premium payment year multiplied by the applicable flat premium rate for the premium payment year. 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 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 make a final filing. If you make an estimated, you will still be required to make a final filing 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 plan.

      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
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   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 2005 Schedule B, as indicated in the table below. Corresponding Schedule B Item Numbers

Corresponding Schedule B Item Numbers

If you are able to use the same Schedule B as under the Alternative Calculation Method, which is the 2005 Schedule B for the 2006 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 2006 premium. The plan has a DOPT of September 1, 2005, and a premium snapshot date of December 31, 2005, and is using data from its 2004 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, 2004;
• 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, 2004;
• the determination date to be entered in item 3 must be January 1, 2004;
• the Value of Plan Assets to be entered in item 3(a) must be determined as of January 1, 2004;
• 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, 2004;
• 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, 2004 (provided they were paid on or before the earlier of the date the 2006 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, 2004;
• the Adjusted Value of Plan Assets to be entered in item 3(d) must be determined as of January 1, 2004;
• 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, 2004, and December 31, 2005; and
• the Adjusted Unfunded Vested Benefits to be entered in item 4 is determined as of December 31, 2005.

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 2006 premium, accruals from January 1, 2005, through December 31, 2005). 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, 2004 and December 31, 2005).

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. The PBGC expects to publish in early 2006 a final rule making electronic filing mandatory for 2006 premium filings made on or after July 1, 2006, for large plans (plans that were required to pay premiums for 500 or more participants for the plan year preceding the premium payment year). Electronic filing is expected to be required for all plans beginning with the 2007 plan year. (Payments may still be made by non-electronic means.)

   Using My PAA, you can easily and accurately submit any type of PBGC premium filing. At the time of the publication of this booklet, My PPA offers two e-filing methods:

   • Data entry and editing screens on which you can create a filing, route it to others for review and esignature, and submit it to PBGC -- available for plan years beginning in 2004 and later.
   • An upload feature that you can use to submit to PBGC filings that were created with compatible private-sector software -- available for plan years beginning in 2005 and later.

   Additional advantages of using My PAA's data entry and editing screens include:

   • Filing data validation ensures accuracy.
   • Automation features ease filing preparation.
   • 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.

2. How to Get Started with My PAA
   1. Two Ways to Get a My PAA account

      To use My PAA, you must have a My PAA account, which gives you a user ID and password to access My PAA. There are two ways you can get a My PAA account:

      • Establish an account as Filing Coordinator for a plan that has authorized you to coordinate the plan's online filings.
      • Accept an invitation from a plan's Filing Coordinator to join the plan's filing team.

      Regardless of the electronic filing method the plan uses to submit premium filings to PBGC (i.e., either using the My PAA data entry and editing screens or uploading a private-sector software-prepared filing), the first step in getting started with My PAA is for the person who will be acting as the Filing Coordinator to establish a My PAA account.

   2. What is a Filing Coordinator?

      If the plan uses My PAA's data entry and editing screens for e-filing, the Filing Coordinator is the person who sets up the plan within My PAA and invites others (e.g., plan administrator, enrolled actuary) to join the plan's e-filing team as necessary. In addition, the Filing Coordinator has the ability to "manage" the e-filing team and draft filings that are in progress in My PAA. If you add other plans to your account as Filing Coordinator, you will also be able to perform these same functions for those other plans.

      If the plan uses the upload feature to submit to PBGC premium filings that were created using private-sector software, the person who signs up to be the Filing Coordinator will most likely be the person who will be uploading the premium filings. (Anyone with a My PAA account can upload filings for any plan, even a plan that is not in the person's account.)

      To register in My PAA as a Filing Coordinator, you must be designated by a plan to be responsible for coordinating its on-line premium filing. Once a person has been designated to be the Filing Coordinator for a plan, he or she registers to use My PAA as described in c. below. If you will serve as the Filing Coordinator for several plans, you will be able to add other plans to your account (see e. below) after you complete the registration process for the first plan. You need only one account, to which you can add an unlimited number of plans.

      Note that if you will not be the Filing Coordinator, then you should not register to use My PAA as described in c. 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 d. below).

   3. Establishing a My PAA account as Filing Coordinator

      When you register to use My PAA, you will provide information about yourself and one plan 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 about which you provided information when you registered.

      Your 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 a My PAA account as the Filing Coordinator for a plan:

      1. Access PBGC's Web site (www.pbgc.gov) and find the page that gives new users more information and the ability to sign up for My PAA.
      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 about which you provided information when you registered.
      6. Once you have registered to use My PAA, you can:
         • Proceed to d. where you will set up the team of professionals who will use My PAA's data entry and editing screens to contribute to the plan's filing or will upload private-sector software-prepared premium filings for direct submission to PBGC; or
         • Proceed to e. to add other pension plans to your account for which you are the Filing Coordinator.

   4. Organizing an E-Filing Team

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

      A group of people that can 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 premium filings prepared for the plan with My PAA's data entry and editing screens. Using My PAA, the Filing Coordinator enters information for each person who is to be added to 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;
      • Electronically submitting e-filings with e-payments to PBGC; and
      • Viewing he plan's account history on line.

      In addition, each filing team member (regardless of "e-filing permissions") will be able -- like a Filing Coordinator -- to upload premium filings prepared with private-sector software for any plan.

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

      1. Access the My PAA page on PBGC's Web site (www.pbgc.gov) 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.

      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.

   5. Adding Additional Plans to Your 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 the My PAA page on PBGC's Web site (www.pbgc.gov) 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 Use My PPA's Data Entry
   and Editing Screens to 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 using My PAA's data entry and editing screens. 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 (single-employer 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 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 indicate how payment will be made from this list of alternatives:

      1. Pay online using My PAA.
      2. Pay with a paper check.
      3. Pay with an electronic funds transfer outside of 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, the account number, and the bank routing number 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 approximately 3.04 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 selected, premium payment funds are securely transferred through the Internet when the e-filing is submitted to PBGC.

      If you choose to pay the premium outside of My PAA, either by electronic funds transfer or by paper check, My PAA will give you payment instructions (including a voucher to send in with your paper check). As always, it is very important to include the plan's EIN/PN and plan year commencement (PYC) date with these payments outside of My PAA so your payment can be correctly tied to your premium filing.

   4. Submitting the completed e-filing with payment

      All of the following conditions must be met before My PAA will allow the Filing Coordinator or the person authorized to submit an e-filing as the plan administrator to electronically submit an e-filing and e-payment (if one is being made) 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 being made through My PAA, 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.

   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. How a Person With a My PAA Account Uploads a
   Premium Filing Prepared With Private-Sector Software
   1. Requirements to upload premium filings prepared with private-sector software

      If you use a private-sector software program to create a premium filing, you can use My PAA to upload the filing directly to PBGC electronically via the Internet. For you to do this:

      • You must have a My PAA account (i.e., a user ID and password -- see G.2.);
      • The private-sector software program you are using must be able to save your premium information in a PBGC-compatible electronic format; and
      • You must be qualified to certify the filing according to PBGC requirements (see d. below).

      Once you have an account, you can upload a filing for any plan (whether or not it is in your My PAA account) as long as you meet the other requirements listed above.

   2. Preparing a premium filing with private-sector software to upload through My PAA

      In order to be able to upload a premium filing through My PAA, the filing must be contained in an electronic file that is in "XML" format and meets PBGC specifications. The specifications are posted on the PBGC's Web site (www.pbgc.gov). Private-sector software providers and developers submit to PBGC sample filings in XML format for PBGC review and assignment of approval numbers; you should check with your software provider or developer to find out whether your software is capable of creating an XML file in the proper format for upload to the PBGC through My PAA.

      When you use private-sector software to create a premium filing, follow PBGC's premium filing instructions as well as the user instructions for the privatesector software you are using. Once the filing has been prepared, it must be saved electronically. Follow the user instructions for the private-sector software that tell you how to put the filing information into an electronic file that meets PBGC's specifications.

   3. Uploading a premium filing through My PAA

      To upload your completed premium filing, log on to My PAA and go to the "Uploaded Software-Prepared Filings" section of your My PAA home page. Clicking the "Upload Fully Prepared Filing" button will take you to a screen where you will enter the name of or select the XML file containing the filing you are uploading. My PAA will also prompt you for other information.

   4. Certifying an uploaded premium filing

      When you have selected or entered the XML file name and other information for the upload, My PAA will take you to a certification screen. You must be authorized to submit to the PBGC every filing that you upload. The plan administrator of each plan for which a filing is uploaded must certify the uploaded information. In some cases, an enrolled actuary must also certify the variable-rate premium information in an uploaded filing. The certification screen and accompanying instructions will explain the certification requirements. The plan administrator and enrolled actuary must make their certifications in accordance with those requirements. The requirements are also posted on the PBGC's Web site along with other information about online premium filing.

   5. Selecting a payment method

      When you upload a premium filing via My PAA, you are given the same options for payment of the premium as when you use My PAA's data entry and editing screens to create a filing. See 3.c. above.

   6. Receiving an online receipt
      Once you upload your filing, My PAA gives you an e-filing receipt that contains a confirmation ID and the date and time PBGC received your filing. In addition, this receipt shows the name of the XML file you uploaded and information about the file that you entered when it was uploaded. Note that this receipt does not show the filing information that was contained in the uploaded electronic file.

5. About My PAA Accounts

   Each individual who registers as a Filing Coordinator or becomes a filing team member for one or more plans has a My PAA account that is tied to his or her e-mail address. My PAA accounts are established only once, but information can be added to them as needed.

   There are two ways that a My PAA account can be established:

   • If an individual will function as a plan's Filing Coordinator, that individual's account is established as a result of registering to use My PAA. Filing Coordinators are the individuals responsible for coordinating 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.
6. 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 4. 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 6310
(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