The Pension Benefit Guaranty Corporation (PBGC) on June 26 proposed a rule that would make a variety of clarifications, corrections and improvements to four of its regulations.
The proposed rule is based on the PBGC’s ongoing efforts to review the effectiveness and clarity of its rules and input from stakeholders on PBGC programs. It would amend the following:
- Reportable Events and Certain Other Notification Requirements, by eliminating possible duplicative reporting of active participant reductions, clarifying when a liquidation event occurs and providing additional examples for active participant reduction, liquidation, and change in controlled group events.
- Annual Financial and Actuarial Information Reporting, by eliminating a requirement to submit individual financial information for each controlled group member, adding a new reporting waiver and clarifying others, and providing guidance on assumptions for valuing benefit liabilities for cash balance plans.
- Termination of Single-Employer Plans, by providing more time to submit a complete PBGC Form 501 in the standard termination process.
- Premium Rates, by expressly stating that a plan does not qualify for the variable rate premium exemption for the year in which it completes a standard termination if it engages in a spinoff in the same year, clarifying the participant count date special rule for transactions (e.g., mergers and spinoffs), and by modifying the circumstances under which the premium is prorated for a short plan year resulting from a standard termination.
The PBGC will accept comments on the proposed rule for 60 days after its publication in the Federal Register, which is scheduled for June 27, 2019. Comments may be submitted via:
- the Federal eRulemaking Portal: http://www.regulations.gov;
- an email to: firstname.lastname@example.org. Refer to RIN 1212–AB34 in the subject line; or
- mail or hand delivery to: Regulatory Affairs Division, Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005–4026.
All submissions must include the agency’s name (Pension Benefit Guaranty Corporation, or PBGC) and the Regulation Identifier Number (RIN) for this rulemaking, RIN 1212–AB34.