Some Defined Benefit and Cash Balance Plans are subject to PBGC coverage. This covers the risk of the Employer going bankrupt and not being able to provide already-promised benefits. Check out this premium increase:

1974 original ERISA: $ 1 per person

2025 premium: $ 106 per person

Plus…

There is also a “variable premium” reflecting a surcharge for underfunded plans. When this system was created in 1985, the variable premium was 0.9% of unfunded liabilities. This has now increased to 5.9% this year.

Most of our DB/CB plans take care to avoid the variable premium by fully funding if they can. Also, note that the 2025 premium is due 9-15-25, instead of 10-15 as in the past. The due date reverts back to 10-15-26 next year. (Explanation – they did this to shove that premium revenue before 9/30/25, the last day of the US Fiscal Year.)