Pension & Benefits News PBGC regulatory agenda addresses benefit payments, multiemployer plans
Thursday, January 9, 2020

PBGC regulatory agenda addresses benefit payments, multiemployer plans

By Pension and Benefits Editorial Staff

The Pension Benefit Guaranty Corporation (PBGC) has released its regulatory agenda for Fall 2019, which outlines regulations that have been selected for amendment during the next year.

The items in the PBGC’s proposed rule stage include:

  • A proposed update of the methodology for setting interest and mortality assumptions under the asset allocation regulation for single-employer plans and mass withdrawal liability determinations in multiemployer plans.
  • A proposed rule that would make clarifications and codify policies in the PBGC’s benefit payments and valuation regulations.
  • A proposed regulation that would update rules for administrative review of agency decisions.
  • A proposed rulemaking would clarify and codify policies on the determination of guaranteed benefits for participants in multiemployer plans.
  • A proposed regulation that would clarify the rules for arbitration procedures used to resolve disputes involving multiemployer plans.
  • A proposed rulemaking would update the assumptions (i.e., interest and mortality) used to determine and pay de minimis lump-sum amounts under terminated single-employer plans.
  • A proposed rulemaking would modernize the rules for requesting and disclosing PBGC records under the Freedom of Information Act (FOIA).
  • A proposed rule would update and make improvements to the filing and issuance rules in part 4000 for submissions to the PBGC and issuances of notices or information to other persons.
  • A proposed rulemaking would improve the PBGC’s recoupment of benefit overpayment rules by making them more flexible.

Final rule stage. There are four items in the PBGC’s final rule stage:

  • Final “housekeeping” rules to make miscellaneous technical corrections, clarifications, and improvements to PBGC’s regulations, notably 29 CFR part 4043 (particularly addressing duplicative reporting of active participant reductions), 29 CFR 4010 (annual financial and actuarial information reporting), and 29 CFR part 4006 (premium rates).
  • Final regulations that would make changes affecting the calculation of withdrawal liability and provide simplified methods for how an employer’s liability is calculated upon withdrawal from a multiemployer plan.
  • Final rulemaking that amends the PBGC’s Privacy Act regulations to exempt a system of records that supports a program of insider threat detection and data loss prevention.
  • A final rule that amends the PBGC’s civil penalty regulations to adjust for inflation the maximum penalty provided for in ERISA Secs. 4071 and 4302.

Source:  The Unified Agenda for Fall 2019.

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