PBGC Amends Reportable Events Rule
The Pension Benefit Guaranty Corporation (PBGC) has issued a final rule
that amends its regulation on reportable events and other notification requirements. The amended rule appeared in the Federal Register of Sept. 11
and will apply to events that occur after Jan. 1, 2016.
The amended rule focuses on the minority of plans and sponsors that pose the greatest risk of defaulting on their financial obligations. The amendments provide most plan sponsors and plans with increased flexibility to determine whether a waiver from reporting will apply. Now reporting will be limited to situations that pose the greatest risk to the pension insurance system.
Under the amended rule, some reportable events waivers will be based on whether plans and their sponsors pose a risk of not being able to maintain their pension plan. Before the amendments, the rule focused solely on plan funding levels.
The new waiver structure focuses on situations where risk is higher, reducing filing requirements for the majority of plans and sponsors where risk to the pension insurance system is lower. The PBGC anticipates about 94% of plans and sponsors now will be exempt from many reporting requirements.
More detailed analysis of the final rule will appear in an upcoming ASPPA asap.