OMB Outlines PBGC Regulatory Agenda

The Office of Information and Regulatory Affairs of the Office of Management and Budget has outlined the Pension Benefit Guaranty Corporation’s (PBGC) fall 2020 regulatory agenda, and the status of the rules that are part of it. 

Proposed Rules

The following rules are in the proposed stage: 

Valuation Assumptions and Methods: Interest and Mortality Assumptions for Asset Allocation in Single-Employer Plans and Mass Withdrawal Liability Determination in Multiemployer Plans. Would update the interest, mortality and expense load assumptions used to determine the present value of benefits under the asset allocation regulation for single-employer plans and for determining mass withdrawal liability payments for multiemployer plans. 

Multiemployer Plan Guaranteed Benefits. Would clarify and codify policies on the determination of guaranteed benefits for participants in multiemployer plans. 

Examination and Copying of Pension Benefit Guaranty Corporation Records. Would modernize the rules for requesting and disclosing material under the Freedom of Information Act.

Improvements to Rules on Recoupment of Benefit Overpayments. Would improve the PBGC's recoupment rules.

Penalties for Failure to Provide Certain Notices or Other Material Information. Would codify a statement of policy for assessing and waiving monetary penalties for failure to timely provide certain required notices or other material information.

Final Rules 

The following rules are in the final stage: 

Benefit Payments and Allocation of Assets. Makes clarifications and codifies policies in PBGC's benefit payments and valuation regulations.

Methods for Computing Withdrawal Liability. Would implement Multiemployer Pension Reform Act of 2014 changes affecting the calculation of withdrawal liability and provide simplified methods for how an employer's liability is calculated upon withdrawal from a multiemployer plan. 

Adjustment of Civil Penalties. This final rule is required annually to amend the PBGC’s civil penalty regulations to adjust for inflation the maximum penalty provided for in Sections 4071 and 4302 of ERISA.