PBGC Finalizes Rule With Technical Corrections, Regulatory Updates

The Pension Benefit Guaranty Corporation issued a final rule making a broad range of technical corrections, clarifications and improvements to its pension insurance regulations, affecting premium rates, premium due dates and plan termination procedures.

The rule, part of the PBGC’s ongoing review to improve clarity and effectiveness of its regulations and to align with statutory changes, will take effect 30 days after its publication in the Federal Register. Most changes apply immediately upon the effective date, while certain amendments—such as the revised final premium filing due dates for terminating plans—apply to plan years beginning on or after January 1, 2026.

Key provisions include:

• Premium rate changes: Amendments to reflect the Setting Every Community Up for Retirement Enhancement Act of 2019’s rules for cooperative and small-employer charity plans and community newspaper plans;
• Revised premium due dates: For terminating plans, the final premium filing will now be due on the earlier of the normal due date or 45 days after filing the post-distribution certification;
• Plan termination rules: Clarified due dates for standard termination notices, new conditions for majority owners waiving benefits and removal of certain multiemployer plan withdrawal liability reporting requirements;
• Electronic filing requirements: Standard termination, missing participant and coverage determination forms must now be filed electronically; and
• Technical corrections: Updates to asset allocation valuation methods, controlled group change reporting and expense loading charge calculations to allow the PBGC to post indexed, per-participant expense amounts annually.

The new rule also removes what the PBGC deemed to be “obsolete” provisions, updates Office of Management and Budget control numbers, and streamlines requirements across more than a dozen parts of Title 29 of the Code of Federal Regulations.

The PBGC stated that most changes are cost-neutral, with some reducing reporting burdens, and certified under the Regulatory Flexibility Act that the changes will not have a significant economic impact on a substantial number of small entities.

The full rule is scheduled for publication in the Federal Register on August 15.