Request for Penalty Waiver

How do the request for penalty waiver and request for reconsideration processes work?

The process typically begins after the receipt of a Statement of Account (SOA). If you believe that the Statement of Account resulted from an error, call our premium payer customer service representatives at 202-326-4242 to resolve the error. For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to the number in the preceding sentence. If this does not resolve the matter to your satisfaction, you may request a waiver of the penalty charge by sending your written request to:

Pension Benefit Guarantee Corporation
P.O. Box 64916
Baltimore, MD 21264-4916.

PBGC has no authority to waive premium and interest charges.

You should document the reasons for requesting a waiver of penalty. PBGC will consider the facts and circumstances and send the plan administrator a written response, generally within 90 days after the request. If the penalty waiver request is denied, you may request reconsideration of PBGC's initial determination to deny the request for waiver of the penalty. PBGC will consider the request for reconsideration independently and will respond to you in writing. This response will be the agency's final determination on the matter.

If I have overpaid my premium, can I take a credit versus a refund?

When you have overpaid your premium (for example, the participant count reported on your final premium filing is lower than that reported on your estimated filing), you have the option of taking a credit on a subsequent year's premium filing form or requesting a refund. Refunds are made by wire transfer to the premium payer's account. You can request a refund by providing the wire transfer information for the refund on the Form 1 or by submitting a separate written request including the wire transfer information. (If you are requesting a refund on an amended filing for a pre-1998 plan year, you may check the refund box on the Form 1 and write in the wire transfer information or include it in an attachment to the amended filing.) Whether you choose a credit or a refund, the overpayment first must be applied toward any premium, penalty, and interest that are owed for the current or any prior plan year. This may result in less of an overpayment available for a refund or credit. If you are unsure as to whether any premium, penalty and interest amounts are owed (for example, because of interest charges due to an increase in participant count), contact our premium payer customer service representatives (202-326-4242) to determine whether the overpayment is fully available for a refund or a credit. For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to the number in the preceding sentence.

How are refunds issued? What action should be taken if the plan did not receive a requested refund?

If PBGC determines that a requested refund is due, the plan administrator will receive a letter from PBGC confirming that the refund will be forthcoming. Included with this letter will be an account history describing how the overpayment was used to satisfy any outstanding premium, interest, or penalty amounts. The refund will subsequently be issued by the U.S. Treasury via electronic wire to the bank you designate (based on the bank routing number and bank account number included with your request for a refund).

If you have not received the refund within 60 days after you receive the PBGC refund letter, contact PBGC's premium payer customer service representatives (202-326-4242). For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to the number in the preceding sentence.

Why did I receive less than the amount of the refund that I requested or no refund at all even though I overpaid my premium?

Overpayments are refunded only if there are funds remaining after all outstanding premium, penalty, and interest charges are first satisfied. Refund-related questions should be directed to our premium payer customer service representatives at 202-326-4242. For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to the number in the preceding sentence.

Are there refunds available for overlapping premium payments resulting from a plan merger, consolidation, or spinoff?

In some of these situations, there can be overlapping premiums, but in others there can be gaps in premiums. Refunds are not available for overlapping premium payments resulting from a plan merger, consolidation or spinoff (nor does PBGC charge for any gaps that may result). Refunds may be available, however, for the following short plan year situations: plans filing for the first time, plans that have changed their plan years, and plans that have been terminated. See Parts B & C of the Premium Payment Package for more details.

What are the premium payment rules regarding terminating plans and why are payment notices sometimes sent to terminated plans?

The obligation to pay premiums does not cease immediately on a plan's termination date. The obligation to file premium forms and payments continues until the end of the plan year in which (1) plan assets are distributed in satisfaction of all plan benefits or (2) a trustee is appointed under ERISA Section 4042. This means that a full year's premium must be paid through the plan year in which one of these occurrences takes place. As a result, terminated plans may receive Past Due Filing Notices if a required premium filing is missing or Statements of Account if a required premium is late or insufficient.

Why do I continue to receive premium filing booklets for my terminated plan and how do I stop this mailing?

Terminated plans may still owe premiums, as described in the answer to Question 17, and, therefore, may still receive premium filing booklets for this purpose. If, however, you believe no further premiums are due for your plan, contact PBGC's premium payer customer service representatives (202-326-4242). For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to the number in the preceding sentence. If there are no further premiums due for the plan, the booklet mailing will stop with the following year's mailing.

How can I ensure that my premium filings and payments are submitted on time?

To ensure the accurate and timely posting of your payment, you must make a separate payment for each filing. If you pay by check, write the plan's EIN/PN, and the date the premium payment year began, on the check. If you pay by wire transfer, include the plan's EIN/PN, and the date the premium payment year began, in the wire transfer instructions (as noted in Premium FAQ 4> above). It is also important that the premium filing be mailed to the correct lockbox address. All premium filings for current or prior plan years must be mailed to the lockbox address currently in effect. The current premium filing address is:

Pension Benefit Guarantee Corporation
P.O. Box 64880
Baltimore, MD 21264-4880

PBGC considers that you filed your premium filing on the date the envelope is postmarked by the United States Postal Service. We will disregard any private postage meter date. If the envelope does not have a legible Postal Service postmark, we will consider that you filed the form three days before we received it.

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