The Pension Benefit Guaranty Corporation (PBGC) has updated its Staff Responses to Practitioner Questions webpage to include additional information about guaranteed benefits, reportable events and standard terminations. The page provides a useful look at the PBGC’s take on particular situations that may arise and practical answers on how to address them.
The guaranteed benefits content addresses phase-in for newly covered plans, newly covered substantial owner plans, phase-in of scheduled benefit increases, application of “earliest PBGC retirement date” rules, application of Title IV guarantee limitations to participants’ plan benefits, mergers with a multiemployer plan, and partial lump sum payments.
The reportable events content discusses asset sales transactions, spin-off transactions involving multiple-employer plans, asset sales transactions, changes in controlled group or contributing sponsor events, changes in controlled group or contributing sponsor events, low default risk waivers and public company waivers.
The standard terminations content addresses failure to file a Standard Termination Notice (Form 500) by the deadline to do so, constructive ownership rules, alternative treatment of majority owner's benefits and allocation of shortfall among multiple majority owners electing alternative treatment of their benefits.
The PBGC updates this webpage periodically as additional questions arise. The updated Q&As can also be accessed on the Other Guidance webpage under the “Employers and Practitioner” menu on PBGC.gov.
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