U.S. Pension Benefit Guaranty Corporation Announces Electronic Payment Requirements

The U.S. Pension Benefit Guaranty Corporation (PBGC) has announced that it will no longer process paper checks as premium payments after June 30th, 2026. This change is in accordance with Executive Order 14247, which aims to modernize payments to and from America's bank accounts. The PBGC now accepts electronic payment methods such as My PAA, Pay.gov, or Electronic Funds Transfer (EFT) via ACH or Fedwire. Additionally, the PBGC has implemented various enhancements to its online premium filing system, including a new Preparer Role that allows all team members to edit/create filings and complete payment steps.

The U.S. Pension Benefit Guaranty Corporation (PBGC) has announced significant changes to its online premium filing process, effective June 30th, 2026. In accordance with Executive Order 14247 , the PBGC will no longer process paper checks as premium payments after this date. This change is part of a broader effort to modernize payments to and from America's bank accounts. The PBGC now accepts electronic payment methods such as My PAA, Pay.gov, or Electronic Funds Transfer (EFT) via ACH or Fedwire.

The PBGC's decision to discontinue paper checks is in line with Executive Order 14247, which aims to modernize payments to and from America's bank accounts. The order was issued by the President of the United States on December 7th, 2021. In addition to this change, the PBGC has implemented various enhancements to its online premium filing system, including a new Preparer Role that allows all team members to edit/create filings and complete payment steps.

The shift towards electronic payments is likely to have significant implications for plan sponsors and administrators who are required to make timely premium payments. Failure to comply with this requirement may result in late interest and penalties. The PBGC's decision to discontinue paper checks also highlights the importance of maintaining accurate and up-to-date records, particularly in relation to payment methods and deadlines.

Practitioners should take note of the PBGC's announcement and ensure that they are prepared to make timely electronic payments after June 30th, 2026. The PBGC's online premium filing system has undergone several enhancements, including the introduction of a new Preparer Role, which may require plan sponsors and administrators to adapt their processes accordingly.