PBGC semiannual regulatory agenda addresses cash balance plans, missing participants, rollovers, premiums

The Pension Benefit Guaranty Corporation (PBGC) has released its semiannual regulatory agenda for Fall 2012, which outlines regulations that have been selected for amendment during the next year.

Proposed rule stage

Among the items in the PBGC’s proposed rule stage are:

• Proposed amendments that would amend the PBGC’s regulation on Reportable Events and Certain Other Notification Requirements (part 4043) to conform to changes under the Pension Protection Act of 2006 (PPA; P.L. 109-280) and the PBGC’s regulations on Premium Rates (part 4006).

• A proposed rule to implement section 410 of the PPA, which allows certain terminating plans not covered by the existing Missing Participants program to participate in that program.

• A proposed rule to address ERISA Title IV treatment of rollovers from defined contribution plans to defined benefit plans, including asset allocation and guarantee limits.

• Proposed regulations that would reduce and simplify the reporting, disclosure, and valuation requirements for certain terminated multiemployer plans or multiemployer plans involved in mergers.

• A proposed amendment to the PBGC’s current regulation on Liability for Termination of Single-Employer Plans to provide guidance as to what constitutes a section 4062(e) event, on the reporting of such an event to the PBGC, and on the determination and satisfaction of liability arising from such an event.

• A proposed rule that would change filing deadlines for plans, make conforming and clarifying changes to the premium rules, and provide relief from premium penalties.

Final rule stage

There are two items in the PBGC’s final rule stage:

• One is a final rule that would amend its regulations to prescribe rules on valuing benefits in terminating cash balance and other hybrid plans.

• A second final rule would amend the PBGC’s regulation on Benefits Payable in Terminated Single-Employer Plans (29 CFR part 4022). That regulation sets forth rules on the PBGC’s guarantee of pension plan benefits, including rules on the phase-in of the guarantee.

Source: The PBGC Agenda for Fall 2012.

For more information, visit http://www.wolterskluwerlb.com/rbcs.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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