Practitioners
What's New for Practitioners
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Notice About Premium Filings: As a service to plan administrators who prepare and submit premium filings, PBGC recently mailed a notice about the upcoming 2013 premium instructions. The notice also includes helpful premium filing reminders. (09/27/12)
Technical Update on 4010 filings under MAP-21: On September 11, 2012, PBGC issued Technical Update 12-2, which provides guidance on the effect of the Moving Ahead for Progress in the 21st Century Act (MAP-21) on annual financial and actuarial information reporting under ERISA section 4010. (09/11/2012)
Technical Update on PBGC premiums under MAP-21: On August 28, 2012, PBGC issued Technical Update 12-1 to provide guidance on how the determination of premiums is affected by the amendments to ERISA section 4006 made by the Moving Ahead for Progress in the 21st Century Act (MAP-21). PBGC expects to issue guidance about MAP-21’s effect on 4010 filings in the near future. (08/28/2012)
My PAA Passwords: Federal information security regulations require us to strengthen the password requirements for My PAA (My Plan Administration Account), which is used by practitioners to electronically file premiums to the PBGC. Stronger passwords will help better protect your personal and business information. The next time you login after the change takes effect (expected no later than August 1, 2012), you will be required to change your password to satisfy the new criteria, e.g., the password must be between 10 and 24 characters and contain at least 1 uppercase character, 1 lowercase character, 1 number and 1 special character. Please note that active account holders will receive an email about the change; and you do not need to rush to change your password. You may continue to access My PAA according to your normal schedule; and My PAA will prompt you to change your password at the appropriate time. If you have any questions, send an email to premiums@pbgc.gov or call the practitioner toll-free number 1-800-736-2444 and select the “premium” option. (06/18/2012)
Administrative Review of Information Penalties: On April 16, 2012, PBGC published a final procedural rule that amends PBGC's administrative review regulation to make assessments of information penalties subject to reconsideration. This rule is associated with retrospective review and analysis in PBGC's Plan for Regulatory Review issued in accordance with Executive Order 13563. The change will promote uniformity and transparency in PBGC's procedures for making and reviewing determinations. (04/16/12)
ERISA Section 4044 Corrections: On March 9, 2012, PBGC published two Federal Register documents that slightly revise its interest assumptions under ERISA section 4044, applicable to valuation dates during the second half of 2011. These minor changes will have little impact on calculations. Relevant postings on the Practitioners page of PBGC.gov have been updated. For ERISA Section 4010 purposes, if you have already calculated benefit liabilities using the originally published interest factors, you do not need to redo those calculations. For questions about 4010 filing requirements, contact the Corporate Finance & Restructuring Department (formerly DISC) at 202-326-4070 or ERISA.4010@pbgc.gov. (03/09/12)
New on PBGC.gov: The website’s Practitioners section now features historical and current information on ERISA Section 4044 Retirement Assumptions. We’ve also reformatted Interest Rates & Mortality Factors into two new pages: Interest Rates and Factors; and Mortality, Retirement and PV Max Guarantee. (03/05/12)
Premium Penalty Relief: A new PBGC policy statement published on February 9, 2012, allows pension plans that have never paid required PBGC premiums to do so without penalty for a limited period of time. After this time period ends, PBGC will step up enforcement efforts against such plans and resume penalty charges. This is an outgrowth of PBGC's ongoing review of its regulations consistent with Executive Order 13563. (02/09/12)
2012 Premium Filings: Both estimated flat-rate filings and comprehensive filings for plan years beginning in 2012 may be electronically submitted via My Plan Administration Account (My PAA). 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 website. The 2012 premium payment instructions (including illustrative forms) are posted to the Premium Instructions and Addresses page of our website. The per-participant flat-rate premium for plan years beginning in 2012 is $35.00 for single-employer plans and $9.00 for multiemployer plans (both unchanged from plan year 2011). (01/09/12)
Premium Filing Amendments: On December 22, 2011, PBGC published a policy statement that applies to certain amended premium filings. (12/22/11)
Reportable Events; Guidance for 2012 Plan Years: On December 7, 2011, PBGC issued Technical Update 11-1, which extends for 2012 plan years the reportable events guidance provided in Technical Update 10-4. (12/07/11)
Expected Retirement Age Update: On December 1, 2011, 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 2012. (12/1/11)
2012 Maximum Guarantee: On November 23, 2011, PBGC updated the Maximum Monthly Guarantee Tables for 2012. The maximum guaranteeable monthly benefit for 2012 is $4,653.41 (as compared with $4,500 for 2011). (11/23/11)
Benefit Restrictions – Correction to 2012 Present Value of PBGC Maximum Guarantee Table: On November 8, 2011, PBGC posted the 2012 table of present values of the PBGC maximum guarantee for use by single-employer plans subject to the partial lump sum benefit restriction under IRC section 436(d)(3)(A)(ii) of the Internal Revenue Code and ERISA section 206(g)(3)(C)(i)(II) . That table contained a typo for the age 53 amount. The correct amount is $350,817, not $350,917. The 2012 table has been corrected. We apologize for any inconvenience this has caused. (11/22/2011)
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 November 03, 2011 PBGC posted the 2012 table. (11/03/11)
Form 5500 Schedule H instructions for reporting PBGC premium payments made from plan assets: On November 2, 2011, PBGC responded to an inquiry by the Pension Committee of the American Academy of Actuaries about instructions for reporting PBGC premium payments made from plan assets. For 2009 and 2010 plan years, filers may report that information on either Line 2(i)(4) (other administrative expenses) or Line 2l (transfers of assets). For 2011 plan years, filers will be required to report that information on Line 2(i)(4). PBGC’s response was prepared in coordination with the Department of Labor and the Internal Revenue Service. (11/02/2011)
Cash balance plans proposed rule: On October 31, 2011, PBGC published a proposed rule on terminating cash balance plans and other statutory hybrid plans. The proposed rule, which implements Pension Protection Act of 2006 changes, would apply to plans trusteed by PBGC and plans that terminate in a standard or distress termination. Comments on the proposed rule are due December 30, 2011. (10/31/2011)
No increase in flat-rate premium for plan year 2012: The per-participant flat-rate premium for plan year 2012 is $35 for single-employer plans and $9 for multiemployer plans (both unchanged from plan year 2011). By law, the premium rates are adjusted for inflation each year based on changes in the national average wage index. (10/25/2011)
Notice About Premium Filings: As a service to plan administrators who prepare and submit premium filings, PBGC is mailing a notice about the upcoming 2012 premium instructions along with a My PAA pamphlet. The notice also includes helpful premium filing reminders. (09/19/2011)
Premium Penalty Relief; Alternative Premium Funding Target Election Relief: On September 15, 2011, PBGC published a notice announcing that PBGC is providing relief from certain premium penalties and in certain situations involving alternative premium funding target elections. PBGC is providing this relief in response to comments by premium payers and pension professionals and as a result of its regulatory review under Executive Order 13563 on Improving Regulation and Regulatory Review. (09/15/11)
Plan for Regulatory Review: PBGC has issued its Plan for Regulatory Review. The plan highlights PBGC’s plans to work with its stakeholders and reduce burden in various areas, including reportable events, premiums, and ERISA sections 4010 and 4062(e). PBGC developed the plan in response to Executive Order 13563 on Improving Regulation and Regulatory Review. Executive Order 13563 calls for an “open exchange” of information among government officials, experts, stakeholders, and the public. The public is encouraged to submit comments on PBGC’s review plan on an on-going basis as PBGC engages in its regulatory review or nominate rules to review. Please send comments to regs.comments@pbgc.gov. All comments will be posted on www.pbgc.gov. (08/23/11)
Final Rule on Treating Bankruptcy Filing Date as Plan Termination Date: On June 14, 2011, PBGC published in the Federal Register a final rule that implements a Pension Protection Act of 2006 change to the benefits PBGC pays. Under PPA, when an underfunded pension plan terminates during the bankruptcy of the plan sponsor, the date that the sponsor's bankruptcy petition was filed is treated as the plan's termination date for purposes of determining (1) the amount of benefits PBGC guarantees, and (2) the amount of benefits in priority category 3 in the asset allocation. The statutory change applies if the bankruptcy petition was filed on or after September 16, 2006. The final rule will be effective July 14, 2011. (06/14/11)
Preliminary Plan for Regulatory Review: PBGC’s Preliminary Plan for Regulatory Review is available for public comment. The Preliminary Plan was developed in response to Executive Order 13563 on Improving Regulation and Regulatory Review. Executive Order 13563 calls for an “open exchange” of information among government officials, experts, stakeholders, and the public. PBGC encourages comments as it finalizes its Plan and engages in the regulatory review. Comments, identified by “Regulatory Review”, may be submitted by any of the following methods:
- Federal eRulemaking Portal: http://www.regulations.gov. Follow the web site instructions for submitting comments.
- E-mail: reg.comments@pbgc.gov.
- Fax: 202-326-4224.
- Mail or Hand Delivery: Legislative and Regulatory Department, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005-4026.
All comments will be posted on www.pbgc.gov. (05/27/11)
Request for Comments on Regulatory Review: On April 1, 2011, PBGC published a Request for Comments on developing a preliminary plan for reviewing its regulations, in response to Executive Order 13563 on Improving Regulation and Regulatory Review. PBGC requests that comments on developing the preliminary plan be submitted by April 20, 2011. There will be additional opportunities for public comment after the preliminary plan is developed and approved. (04/01/11)
Proposed rule on shutdown benefits: On March 11, 2011, PBGC issued a proposed rule to amend its regulation on Benefits Payable in Terminated Single-Employer Plans. The amendments implement section 403 of the Pension Protection Act of 2006, which provides that the phase-in period for PBGC's guarantee of benefits that are contingent upon the occurrence of an "unpredictable contingent event," such as a plant shutdown, starts no earlier than the date of the shutdown or other unpredictable contingent event. Comments on the proposed rule are due May 10, 2011. (03/11/11)
Automated confirmation of e-mails: Starting February 22, 2011, practitioners began receiving automated replies confirming receipt of e-mails sent to PBGC at the following addresses: single-employer.funding.relief.election@pbgc.gov, Post-Event.Report@pbgc.gov, AdvanceReport@pbgc.gov, Form200@pbgc.gov, 4063.report@pbgc.gov, Distress@pbgc.gov, erisa.4010@pbgc.gov, single-employerAFN@pbgc.gov, and multiemployerprogram@PBGC.gov. (02/22/11)
Single-Employer Plans - Funding Relief Notification to PBGC: On December 17, 2010, IRS issued Notice 2011-3 providing single-employer plan guidance on funding relief under the Pension Relief Act of 2010. Included in this Notice is guidance on how to satisfy the IRC 430(c)(2)(D)(vi) provision requiring sponsors of single-employer plans to inform PBGC if they are electing funding relief. See Q&As N-6 and N-7. The deadline is the later of 30 days after the date the election is made, or January 31, 2011. (12/20/10)
Reportable Events; Guidance for 2011 Plan Years: On December 3, 2010, PBGC issued Technical Update 10-4, which extends for 2011 plan years the reportable events guidance provided in Technical Update 09-4. PBGC expects to issue a final rule amending its reportable events regulation in 2011. (12/03/10)
Multiemployer Plans - Funding Relief Notification to PBGC: On November 26, 2010, IRS issued Notice 2010-83 providing multiemployer plan guidance on funding relief under the Pension Relief Act of 2010. Included in this Notice is guidance on how to satisfy the IRC 431(b)(8)(E) provision requiring sponsors of multiemployer plans to inform PBGC if they are applying funding relief. See Q&As N-5 and N-6. These Q&As describe the content of the notice to PBGC and provide the addresses for hard and electronic copies. The deadline is the later of 30 days after the date the plan sponsor makes a formal decision to apply the rules, or January 18, 2011. (12/01/10)
Benefit Restrictions – Updated Present Value of PBGC Maximum Guarantee: Although PBGC's maximum guarantee is not increasing for plans terminating in 2011, the present value of the maximum guarantee for purposes of section 436(d)(3)(A)(ii) of the Internal Revenue Code (IRC) and section 206(g)(3)(C)(i)(II) of ERISA is changing for 2011. The assumptions used to determine the present value vary each year. Technical Update 07-04 describes the methodology used to determine the present value and explains that a table will be posted for each calendar year. On October 26, 2010 PBGC posted the 2011 table. (10/26/10).
4062(e) proposed rule comment period extension: On October 20, 2010, PBGC published a Federal Register document extending until November 12, 2010, the period for submitting comments on its proposed rule on ERISA section 4062(e). (10/20/10)
4062(e) proposed rule: On August 10, 2010, PBGC published a proposed rule on ERISA section 4062(e), which provides for reporting of and liability for certain substantial cessations of operations by employers that maintain single-employer plans. The proposed rule would provide guidance on whether and when a "section 4062(e) event" occurs, describe the liability that arises and how the liability is satisfied, prescribe recordkeeping requirements, and provide for waivers in appropriate circumstances. PBGC also submitted draft information requirements under the proposed rule to the Office of Management and Budget. Comments on the proposed rule and information requirements are due by October 12, 2010. (08/10/10)
Technical Update on multiemployer plan withdrawal liability: On July 15, 2010, PBGC issued Technical Update 10-3, which provides guidance on simplified methods for the application of the requirement under the Pension Protection Act of 2006 that a multiemployer plan in critical status disregard certain benefit reductions in determining the plan's unfunded vested benefits for purposes of determining an employer's withdrawal liability. (07/15/10)
Technical Update on alternative premium funding target elections: On June 16, 2010, PBGC issued Technical Update 10-2, which makes relief available to plans that intended to elect to use the alternative premium funding target to calculate the variable rate premium but did not check the appropriate box on the comprehensive premium filing, if certain conditions are met. The Technical Update sets forth the scope of the relief and the process for obtaining it. (06/15/10)
Relief in connection with alternative premium funding target elections: PBGC will provide relief to certain plans that used the alternative premium funding target to determine the variable-rate premium, but did not check the appropriate box on the comprehensive premium filing. As explained in a June 7 letter to the leadership of the Senate HELP and Finance Committees (PBGC's two Senate committees of jurisdiction), a plan that intended to elect to use the alternative premium funding target will be deemed to have made a valid election if certain conditions are met (see also May 20 letter from the Senate committees). PBGC will issue a Technical Update shortly setting forth the scope of the relief and the process for obtaining it. (06/08/10)
Form 5500, Schedule R instructions: On June 8, 2010, PBGC issued Technical Update 10-1, which provides guidance on the 2009 instructions to Form 5500 (Annual Return/Report of Employee Benefit Plan), specifically to the instructions for Line 14 of Schedule R (Retirement Plan Information). Line 14 requires multiemployer plans to report the number of inactive participants whose employers have withdrawn from the plan, in connection with Pension Protection Act of 2006 amendments to section 103(f)(2)(C) of ERISA (Annual Reports). Technical Update 10-1 clarifies the "last employer rule" under the Schedule R Instructions and provides reporting relief for the 2009 plan year for "a reasonable approximation" of the number of participants required to be reported (e.g., based on sampling) and an alternative method of compliance based on the number of withdrawn employers. (06/08/10)
