Small Plan Reporting Relief for Missed 2009 Quarterlies: On April 30, 2009, PBGC issued Technical Update 09-3, which provides relief from part 4043 reporting requirements if a required quarterly contribution for the 2009 plan year is not timely made to a plan, and the failure to make the contribution is not motivated by financial inability. The Technical Update waives reporting in such cases if the plan has fewer than 25 participants and provides a simplified reporting requirement if the plan has at least 25 but fewer than 100 participants. (04/30/09)

4010 Reporting - Alternative Form-of-Payment Assumption for Determining Benefit Liabilities:  On March 25, 2009, PBGC issued Technical Update 09-2, which allows 4010 filers to determine benefit liabilities for 4010 reporting purposes using the form of payment assumption described in 29 CFR § 4044.51 (generally an annuity form of payment).  This is an alternative to the form-of-payment-assumption under § 4010.8(d)(2)(i) of PBGC's final regulation on 4010 reporting, which requires filers to use the form-of-payment assumption for determining the minimum required contribution. (03/25/09)

4010 Filings:  The e-4010 filing application and related materials have been updated to reflect changes in the March 16, 2009 final rule. The application is now available to accept post-Pension Protection Act of 2006 filings. (03/20/09)

4010 Final Rule:  On March 16, 2009, PBGC published a final rule that amends its regulation on Annual Financial and Actuarial Information Reporting (29 CFR part 4010).  The final rule implements Pension Protection Act of 2006 changes to ERISA section 4010 and makes other modifications and clarifications to the reporting requirements.  PBGC expects to update the e-4010 filing application and related materials (e.g., filing instructions) within a few days.  Until the application is updated, filers should not attempt to enter data for post-PPA filing; such data will be lost when the application is updated.  However, first-time filers may log on to the application to set up an account and familiarize themselves with the application, through http://www.pbgc.gov/practitioners/reporting-and-disclosure/content/page14529.html.  The first filings under the new rules are due April 15, 2009. (03/16/09)

Single-employer plan Annual Funding Notices: Under section 101(f) of ERISA and guidance issued by the Department of Labor, starting with plan years beginning on or after January 1, 2008, single-employer plans with liabilities that exceed plan assets by $50 million or more must provide PBGC with a copy of the Annual Funding Notice by the Annual Funding Notice due date.  Single-employer plans with liabilities that exceed plan assets by less than $50 million must provide PBGC with a copy of the Annual Funding Notice within 30 days of receiving a written request from PBGC.  See Department of Labor Field Assistance Bulletin No. 2009-01 (Feb. 10, 2009),  http://www.dol.gov/ebsa/pdf/fab2009-1.pdf.

Single-employer plans required to provide PBGC with a copy of the Annual Funding Notice should e-mail it to single-employerAFN@pbgc.gov, or send it to:

PBGC
ATTN: Single-Employer AFN Coordinator
1200 K Street, NW, Suite 270
Washington, DC 20005-4026

For more information on reporting and disclosure requirements under section 101(f) of ERISA, including a model notice, see www.dol.gov/ebsa.  For questions on PBGC requirements regarding the Annual Funding Notice, call 202-326-4070 or e-mail single-employerAFN@pbgc.gov. (03/13/09)

Practitioner Filing Reminders Now Available: In response to customer requests, PBGC can now send automatic e-mails to help practitioners remember filing deadlines. To sign up for one or more PBGC filing reminder(s), visit the Practitioner Filing Reminders Web page, click on the month(s) that you would like to receive a reminder and enter your e-mail address. PBGC will send a filing reminder to your e-mail address by the third workday of each month you select. (03/6/09)

No Missed-Quarterly Waiver for 2009:  PBGC is not granting an automatic waiver for 2009 of the requirement to notify PBGC of missed quarterly contributions under section 4043 of ERISA and PBGC's reportable events regulation (29 CFR Part 4043).  Automatic waivers have been granted by Technical Update for 2008 and prior years where the employer had 100 or fewer participants covered by its plans, or had between 100 and 500 participants covered by its plans and had missed contributions to a plan that was well-funded.  PBGC's experience is that many plans that did not report missed quarterlies because of the automatic waiver later terminated with unfunded liabilities, and that if missed-quarterly reports had been made, PBGC might have been able to work with plan sponsors to avoid the underfunded terminations.  PBGC will still grant case-by-case waivers where appropriate. (02/20/09) 

Notice To Defined Benefit Plans Concerning Funds Invested With Bernard L. Madoff Investment Securities LLC: Concerning pension plans that may have suffered investment losses due to the failure of Bernard L. Madoff Investment Securities LLC, PBGC reminds sponsors of single-employer plans that will be unable to pay benefits when due: ERISA section 4043 requires them to notify the agency within 30 days. Trustees of multiemployer plans who believe benefits will not be paid must also carry out their Title IV responsibilities, including PBGC notification.  Additional information is available in the press release. (02/09/09) 

2009 Premium Filings:  My Plan Administration Account (My PAA), PBGC's premium e-filing application, is now ready to accept premium filings for plan years beginning in 2009. Information about how to e-file via My PAA (e.g., FAQs and Demos) is on the Online premium filing (My PAA) page of our Web site. The premium payment instructions (including illustrative forms) for both Estimated Flat-rate Filings and Comprehensive Filings for plan year 2009 are posted to the Premium Instructions and Forms page of our Web site. (01/26/09)

Reportable Events: Funding-Related Determinations for Threshold Test, Waivers, and Extensions; Effect of the Pension Protection Act of 2006; Guidance for 2009 Plan Years:  On January 9, 2009, PBGC issued Technical Update 09-1 , which provides guidance on the applicability of changes made by the Pension Protection Act of 2006 as they relate to PBGC's Reportable Events regulation (29 CFR part 4043).  Technical Update 09-1 provides basically that for Reportable Events purposes, a plan's unfunded vested benefits and the value of its assets and vested benefits are determined for a plan year beginning in 2009 in the same manner as for premiums for the preceding plan year.  See Technical Update 07-2 for Reportable Events guidance for 2008 plan years. (01/09/09)

Minimum Lump Sum Assumptions for Terminating Single-Employer Plans; Pension Protection Act of 2006:  On December 31, 2008, PBGC issued Technical Update 08-4 , which provides guidance on minimum lump sum assumptions for plans that terminate in standard terminations (and in certain distress terminations) after the effective date of PPA 2006 changes to interest and mortality assumptions for minimum lump sums in ongoing plans.  Among other things, Technical Update 08-4 addresses situations where a plan terminates in a plan year before the PPA 2006 interest rate basis is fully phased in and pays lump sums in a subsequent plan year.  See Technical Update 07-3  for guidance on minimum lump sum assumptions for plans that terminate before the effective date of the PPA 2006 changes. (12/31/08)

Multiemployer Withdrawal Liability Final Rule:  On December 30, 2008, PBGC published in the Federal Register a final rule that implements changes under the Pension Protection Act of 2006 (PPA 2006) to the withdrawal liability methods for multiemployer plans and makes other changes to the multiemployer program under PBGC's regulatory authority.  For example, the rule implements the PPA 2006 "fresh start" option for determining withdrawal liability.  (12/30/08)

Benefit Restrictions - Present Value of PBGC Maximum Guarantee:  The Pension Protection Act of 2006 provides that, generally beginning in 2008, single-employer plans that are between 60 and 80 percent funded may not pay lump sums or other accelerated distribution forms with values in excess of: (1) 50 percent of the amount that would be paid absent the restriction or, if smaller (2) the present value of PBGC's maximum guarantee computed under PBGC guidance. Technical Update 07-04 describes the methodology used to determine the present value of PBGC’s maximum guarantee and explains that a table will be posted for each calendar year.  On December 22, 2009 PBGC posted the 2009 table. (12/22/08)

ERISA Section 4010 Filing Waiver:  On December 19, 2008, PBGC issued Technical Update 08-3, which waives the filing under ERISA section 4010 for information years beginning on or after January 1, 2008 if:  (1)  the sole reason reporting would otherwise be required is because one or more plans sponsored by members of the filer's controlled group have a funding target attainment percentage of less than 80 percent;  and (2)  the aggregate underfunding for plans sponsored by members of the filer's controlled group is less than $15 million.  This waiver is identical to a waiver in PBGC's proposed rule that would amend PBGC's regulation on Annual Financial and Actuarial Information Reporting (29 CFR part 4010).  PBGC expects to issue a final rule in early 2009.  PBGC issued Technical Update 08-3 pending issuance of the final rule so that potential filers can make informed decisions about elections to waive carryover balances, which, for many plans, are due by year-end.  (12/19/08)

Expected Retirement Age Update: On December 1, 2008, PBGC published a final rule amending its valuation regulation by substituting a new table for selecting a retirement rate category.  The new table applies to any plan being terminated either in a distress termination or involuntarily by the PBGC with valuation date falling in 2009. (12/01/08)

2009 Maximum Guarantee: On December 1, 2008, PBGC published a final rule amending its benefits payment regulation by updating the maximum guaranteeable monthly benefit table for 2009.  The maximum guaranteeable monthly benefit for 2009 is $4,500.00 (as compared with $4,312.50 for 2008). (12/01/08)

Flat-Rate Premium Increase for Plan Year 2009: On December 1, 2008, PBGC published a notice stating that the per-participant flat-rate premium for single-employer plans for plan year 2009 is $34.00 (up from $33.00 for Plan Year 2008) and $9.00 (unchanged from Plan Year 2008) for multiemployer plans. By law, the premium rates are adjusted for inflation each year based on changes in the national average wage index. (12/01/08)

Disclosure of Termination Information Final Rule: On November 18, 2008, PBGC published a final rule to implement section 506 of the Pension Protection Act of 2006, which amends sections 4041 and 4042 of ERISA. These amendments require that plan administrators, plan sponsors, and PBGC disclose certain information in connection with distress terminations or PBGC-initiated terminations to affected parties upon request. (11/18/08)

 What’s New for Practitioners Archive