PBGC Seeks to Make Termination Form Submissions, Consulations Easier

By ASPPA Net Staff • October 02, 2017 • 0 Comments

The Pension Benefit Guaranty Corporation (PBGC) seeks to expand the ways single-employer plan administrators submit plan termination forms, as well as the ways plan sponsors can contact the PBGC for pre-filing consultations before filing for a distress termination.

The PBGC announced on Sept. 27 that it intends to request that the Office of Management and Budget (OMB) extend approval of a collection of information in its regulations on Termination of Single-Employer Plans and Missing Participants, as well as implementing forms and instructions. It also seeks public comment on the matter.

The PBGC hopes to make it easier for plan administrators to make submissions by allowing the administrator of a plan terminating in a standard termination, or in a distress termination in the private sector, to submit termination forms electronically rather than by mail or personal delivery only.

The PBGC also is proposing to make it possible for plan sponsors to contact it for a voluntary pre-filing consultation to discuss the filing process and ensure the filing of a distress
termination is appropriate given the sponsor’s specific circumstances. Such consultations, the PBGC says, will help in:

  • determining whether a waiver of one or more filing obligations is appropriate;

  • identifying potential issues preventing a distress termination of a particular plan; and

  • gleaning whether the commencement of an agency-initiated termination of the pension plan is warranted.

The PBGC seeks public comments to help it to:

  • evaluate whether the collection of information is necessary for it to properly perform its

  • determine whether the information would have practical use;

  • evaluate the accuracy of its estimate regarding how burdensome the collection of information would be;

  • evaluate the validity of the methodology and assumptions used;

  • enhance the quality, utility and clarity of the information to be collected; and

  • minimize the burden of the collection of information on those who are to respond.

The PBGC will accept comments through Nov. 26, 2017. They may be submitted through the federal eRulemaking Portal at http://www.regulations.gov, by e-mail to: paperwork.comments@pbgc.gov; and by mail or hand delivery to: Office of General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005-4026.