“By providing an alternative dispute resolution option for employers who sponsor ongoing and terminated plans, we expect to save time and money for both the government and our stakeholders,” says PBGC Director Tom Reeder.
A technical update provides an alternative method for determining whether reporting an attrition event to the PBGC is required.
The agency is proposing that termination forms may be filed electronically and that plan sponsors be offered a pre-filing consultation.
The relief applies to PBGC premiums, single-employer plan terminations, reportable event notices, annual employer reporting, requests for reconsideration or appeals and multiemployer plan deadlines.
The agency is proposing two modifications for multiemployer plans and one modification for single-employer plans.
“Companies feel that the time is right to reduce or eliminate their pension funding shortfalls.” says Matt McDaniel, partner, Mercer.
The PBGC and DOL also are providing relief similar to that provided to Hurricane Harvey victims.
The agency says the financial assistance, together with benefit reductions that are required as a condition for receiving PBGC assistance, will help the United Furniture Workers Pension Fund A to avoid insolvency and to pay benefits to participants.
If IRS adds additional disaster areas in connection with its own filing extensions, any person responsible for meeting a PBGC deadline that is located in those additional areas will also be granted relief.
The Annual Funding Notice requirements implemented by the Pension Protection Act have been somewhat helpful but could be significantly improved, according to the American Academy of Actuaries.
Retirement plan industry stakeholders are asked what objectives and projects the pension insurance agency should prioritize in the years ahead.
New mortality tables mandated by the IRS will go into effect in 2018, and PBGC premiums will only go up from here.
PBGC explains the additional funding and security for the company's defined benefit pension plans is being provided in connection with the sale of Sears' Craftsman brand to Stanley Black & Decker.