§1307 Payment of Premiums

Summary

The designated payor must pay the premiums the corporation sets for a plan when they are due. The corporation decides the timing and method for paying (for example, estimated or in advance). Premiums that applied 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 adding up until the plan’s assets are paid out under a termination process or until a trustee is appointed under section 1342, whichever comes first. If a multiemployer plan gets financial help under section 1431, the corporation may waive or lower that year’s premium, but any waived amount counts as that same financial help. If a basic benefit premium is paid late, the corporation can add a late charge of up to 100 percent unless the payor got a waiver before the due date and then paid within 60 days. The corporation cannot grant a waiver if the payor won’t be able to pay within 60 days. Interest on unpaid premiums runs from the last due date to the date paid at the rate in section 6601(a) of title 26. The corporation may pay interest on refunded overpayments at that same rate. The corporation can sue in U.S. district court where the plan is located, run, or where a defendant lives to collect unpaid premiums, penalties, and interest. The guarantee of basic benefits continues even if the designated payor misses payments. "Designated payor" means the contributing sponsor or plan administrator for single-employer plans, and the plan administrator for multiemployer plans. If a contributing sponsor is in a controlled group, every group member is jointly and severally liable for the sponsor’s premiums; "controlled group" means the group treated as a single employer under subsections (b), (c), (m), or (o) of section 414 of title 26.