For 2012, the variable-rate premium is $9 for each $1,000 of unvested benefits.
There is a cap on this premium for small plans with fewer than 25 employees. The cap per participant is $5 times the number of participants squared.
A plan will not be required to pay the variable-rate premium if it satisfies at least one of the following exemptions:
- - The plan has no vested participants
- - The plan is fully insured under IRC 412(e)(3)
- - The plan is terminating in a standard termination where all benefits are funded or some benefits are being waived for a more than 50 percent substantial owner in accordance with PBGC regulations.
This premium is calculated using the 'standard method' or 'alternative method'.