Multiemployer Plan Alternative Terms and Conditions to Satisfy Withdrawal Liability: PBGC is issuing guidance on alternative terms and conditions that multiemployer plans can use to satisfy withdrawal liability claims. The guidance describes the types of information PBGC finds helpful in evaluating plan proposals, and the factors PBGC considers in its evaluation. PBGC is issuing guidance now because it is observing an uptick in plans considering alternative rules and PBGC wants to be transparent and provide stakeholders with useful information to assist them in this process. Read the press release: PBGC Issues Guidance to Assist Multiemployer Pension Plans Seeking Alternative Rules for Employer Withdrawal Liability.
(04/03/2018)Owner-participant Proposed Rule: On March 7, 2018, PBGC published a proposed rule to conform our regulations to changes in the phase-in rules for owner-participants under the Pension Protection Act of 2006 (PPA 2006). Sections 4022 and 4044 of ERISA cover PBGC’s guarantee of plan benefits and allocation of plan assets, respectively, under terminated single-employer plans. Special provisions within these sections apply to owner-participants, who have certain ownership interests in their plan sponsors. PPA 2006 made changes to these provisions. PBGC has been operating in accordance with the amended provisions since they became effective.
With this rulemaking, PBGC intends to increase transparency into its operations and provide guidance for plan administrators on the impact of the statutory changes. The proposed rule clarifies that plan administrators may continue to use the simplified calculation in the existing rule to estimate benefits funded by plan assets. It also provides new examples to aid plan administrators in implementation.
(03/07/2018)Annual Update of Maximum Civil Monetary Penalty: Federal law requires that PBGC amend its civil penalty regulations annually to incorporate an inflation adjustment on the maximum penalty that may be assessed when plans fail to provide certain required information (e.g., reportable event filings, 4010 filings, certain multiemployer plan notices). Accordingly, on January 12, 2018, PBGC will publish a final rule amending two regulations (29 CFR parts 4071 and 4302).
Although the maximum penalty is increasing, it's worth noting that it is uncommon for PBGC to assess information penalties. The agency's goal is to encourage compliance, not to penalize plans that inadvertently forget to file information. In most cases, when PBGC does assess an information penalty, it is for an amount significantly less than the maximum permitted.
(01/11/2018)2018 Premium Filings: My PAA is now ready to accept electronic premium filings for plan years beginning in 2018. In addition, if you have the plan in your My PAA account (which we highly recommend), you can submit an online Request for Reconsideration (of penalty) or a Request for a Premium Refund (by the PA/PA Rep). For additional information, see the following pages: Premium Payment Instructions & Addresses, What's New in My PAA & Reminders, Online Demos, and the Online Premium Filing with My PAA page (for FAQs, My PAA User's Manual, etc.).
(01/10/2018)2018 Premium Filing Instructions: The Comprehensive Premium Filing Instructions for 2018 Plan Years (including the illustrative form) have been approved by OMB and are now available on PBGC's website. Of particular note is a new section alerting practitioners to the most common premium filing mistakes. We expanded the section about short plan years to provide additional information for plans expecting to distribute assets during the 2018 plan year pursuant to a standard termination. In addition, we’ve expanded the examples in the section about how to determine premiums in a year when a plan is involved with a Spinoff, Merger or Consolidation. My PAA will be ready to accept 2018 filings in the very near future.
(01/08/2018)