PBGC Issues Guidance on ARPA’s Impact on ERISA Section 4010 Reporting

The Pension Benefit Guaranty Corporation (PBGC) on Oct. 15 issued guidance on the effect of the American Rescue Plan Act of 2021 (ARPA) on annual financial and actuarial reporting under section 4010 of ERISA and part 4010 of PBGC’s regulations. The guidance is contained in Technical Update 21-1.

The PBGC is waiving 4010 reporting requirements in situations in which the reporting obligation is triggered solely because of a retroactive election permitted by the ARPA and IRS Notice 2021-48. It also provides guidance regarding actuarial information reported in a 4010 filing that changes because of the ARPA.

ERISA gives the PBGC the authority to waive requirements to submit information regarding one or more filers or plans. Under that authority, the requirement to submit a 4010 filing for an information year ending before Dec. 31, 2021 is waived if such filing would not have been required absent the enactment of ARP and an employer election to increase the prefunding balance.

No Need to Amend to 4010 Filings to Reflect ARP-Related Changes

If a 4010 filing contains actuarial information that subsequently changes, ordinarily the filing would need to be amended. In Technical Update 21-1, the PBGC says that it appreciates that it would be unduly burdensome to require such amendments to the extent the changes are solely the result of ARP. Therefore, if any actuarial information reported as part of a 4010 filing changes because of ARP, the filing does not need to be amended to revise such information. This is the case regardless of whether that actuarial information was reported in Section III of Schedule P or in the required actuarial valuation report (AVR) attachment.

4010 Filings Submitted Before Actuarial Valuation Report Is Available

If, in accordance with Section 4010.8(b) of the PBGC’s regulation, a filer plans to submit the AVR after the regular 4010 filing due date and on or before the alternative AVR due date provided in Section 4010.10(b), when it is time to submit the AVR:

If an AVR reflecting ARP elections is available, submit that AVR.
If the sponsor has not yet made decisions about various elections that could affect the information included in the AVR, or if such elections have been made but a post-

• ARP AVR is not yet available, submit an AVR based on pre-ARP law.
• Reservation of Right to Request Revised Actuarial Information

The PBGC says that it reserves the right to request that a filer submit revised actuarial information reflecting any ARPA-related changes, if the PBGC decides it needs that information for its monitoring and enforcement activities. If the PBGC requests such information, it says it will provide sufficient time to comply with the request.

Other Effects

Technical Update 21-1 supplements the guidance provided in the instructions to the e-4010 module of PBGC’s e-filing portal. It has no effect on any other requirement under 29 CFR part 4010.

A Caveat

The guidance contained in Technical Update 2021-1 represents the PBGC’s current thinking on this topic. It does not create or confer any rights for, or on, any person and is not binding. The PBGC adds that if an alternative approach satisfies the requirements of the applicable statutes and regulations, one can use it.