September 10, 2015
On September 10, the Pension Benefit Guaranty Corporation (PBGC) issued final regulations revising reportable event requirements under Section 4043 of the Employee Retirement Income Security Act (ERISA). The new regulations focus reporting exceptions on plans of sponsors that have “low default risk” and plans that do not owe a variable-rate premium.
ERISA requires plan sponsors to report to PBGC certain events that may have an impact on the financial health of a defined benefit pension plan. Generally, reporting is 30 days after the event, but in certain instances, plans of non-publicly traded companies must report at least 30 days in advance of the event. The final regulations are a culmination of a multi-year process to revise existing final regulations that PBGC believed required reporting too frequently in some cases, and in other cases provided reporting exceptions that were too generous.
The new regulations apply to events occurring on or after January 1, 2016. Answers to frequently asked questions about the regulations are on the PBGC website.
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