§1307 Payment of premiums

Summary

The designated payor must pay the premiums the corporation charges for a plan when they are due. The corporation decides the timing and may require estimated or advance payments. Premiums charged on September 2, 1974 are due within 30 days after that date. Premiums for the first plan year that starts after September 2, 1974 are due within 30 days after that plan year begins. Premiums keep accruing until the plan’s assets are distributed under a termination procedure or until a trustee is appointed under section 1342, whichever happens first. The corporation can waive or lower premiums for a multiemployer plan that gets help under section 1431, but any waived amount counts as that financial help. If a basic benefit premium is late, the corporation can charge up to 100% of the unpaid premium. A waiver given before the due date for substantial hardship can prevent that charge if payment is made within 60 days after due date. If unpaid past the final date, interest runs from that date at the rate in section 6601(a) of title 26. The corporation may pay interest on refunded overpayments at the same rate. The corporation can sue in federal court where the plan is located, run, or where a defendant lives to recover unpaid premiums, penalties, and interest. The corporation must not stop guaranteeing basic benefits just because a payor missed a premium. Designated payor — who must pay: for single-employer plans, the contributing sponsor or plan administrator; for multiemployer plans, the plan administrator. Controlled group — groups treated as a single employer under section 414(b), (c), (m), or (o) of title 26; if the contributing sponsor is in such a group, each member is jointly and severally liable for the sponsor’s premiums.