PBGC Seeks OMB Nod on Modifications to 2021 Information Collection

The Pension Benefit Guaranty Corporation (PBGC) is seeking the approval of the Office of Management and Budget (OMB) of modifications to the information collection related to 2021 premium filings. 

The PBGC intends to modify the 2021 premium filing to require certain plans that transferred assets to another plan (or received assets from another plan) at the beginning of the plan year to report additional information about the transfer. More specifically, such plans will be required to report whether the transfer was de minimis and, in the case of a de minimis merger, whether the transferee plan had fewer assets than the transferor plan.

The PBGC also intends to update the premium rates and make conforming, clarifying and editorial changes. One such change, to conform with the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, is adding the option of cooperative and small-employer charity (CSEC) plan as a response to the question concerning plan type.

Premium filings report: 

• the flat-rate premium and related data (all plans);
• the variable-rate premium and related data (single-employer plans); and
• additional data such as identifying information and miscellaneous plan-related or filing-related data (all plans). 

The PBGC says that it needs this information to:

• identify the plans for which premiums are paid;
• verify whether the amounts paid are correct;
• help it determine the magnitude of its exposure in the event of plan termination;
• help track the creation of new plans and transfer of participants and plan assets and liabilities among plans; and
• keep PBGC's insured-plan inventory up to date. 

This information and the retained records are also needed for audit purposes.

Publication

The PBGC modifications are scheduled to be published in the Federal Register of Dec. 22, 2020.

Comments Welcome

The PBGC will accept comments on these proposed modifications as long as they are submitted on or before 30 days after it appears in the Federal Register. Written comments and recommendations for the proposed information collection should be sent to https://www.reginfo.gov/public/do/PRAMain.