Recent developments at the Pension Benefit Guaranty Corporation (PBGC) have resulted in new forms, a new final rule and a new page listing notices for plan participants.
New Form and Instructions
The PBGC has announced that a new form and instructions for requesting a determination regarding whether a plan is covered by Title IV of ERISA have been approved by the Office of Management and Budget and are now available.
Request for Coverage Determination is to be used by a plan administrator or plan sponsor of a plan to request that the PBGC determine whether a plan is covered under title IV of ERISA. It was created to streamline and simplify the coverage determination process. The instructions add that, in limited circumstances, under a one-year pilot program, employers may also use the form to request an opinion letter about whether a plan in the process of being created is likely to be covered by the PBGC.
The PBGC has also announced that it has updated its coverage webpage to reflect these changes.
New Final Rule in Effect
The PBGC also has announced that a new final rule on reporting and disclosures of plan information by terminated and/or insolvent multiemployer plans to the PBGC, participants and beneficiaries went into effect on July 1. The PBGC amended its multiemployer reporting, disclosure and valuation regulations to:
- reduce the number of actuarial valuations required for smaller plans terminated by mass withdrawal;
- add a valuation filing requirement;
- add a withdrawal liability reporting requirement for certain terminated plans and insolvent plans;
- remove certain insolvency notice and update requirements; and
- reflect the repeal of the multiemployer plan reorganization.
The PBGC says that these changes include a new combined notice of insolvency and notice of insolvency benefit level as well as requirements to file actuarial valuation information and withdrawal liability information with PBGC.
These new filing requirements are applicable for plan years ending after July 1, 2019.
New Web Page
The PBGC has created a new webpage that lists the publication of announcements the PBGC publishes in local newspapers to inform plan participants that the PBGC is taking responsibility for their plans, as well as links to those announcements. The page currently lists announcements to participants in the plans operated by Black United Fund Defined Benefit Plan, Carrie Steele-Pitts, Home, Inc., Credit Managers Association of California, Imation Cash Balance Pension Plan, Sears Holdings and Sheet Metal Products, Inc.