Pension & Benefits News PBGC regulatory agenda addresses benefit payments, multiemployer plans
Thursday, January 28, 2021

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 2020, which outlines regulations that have been selected for amendment during the next year.

Proposed rule stage. 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 rulemaking would clarify and codify policies on the determination of guaranteed benefits for participants in multiemployer plans.
  • A proposed rulemaking would modernize the rules for requesting and disclosing PBGC records under the Freedom of Information Act (FOIA).
  • A proposed rulemaking would improve the PBGC’s recoupment of benefit overpayment rules.
  • A proposed rule would primarily codify a PBGC statement of policy for assessing and waiving monetary penalties for failure to timely provide certain required notices or other material information.
  • A proposed rule would make miscellaneous updates, clarifications, and improvements to PBGC’s regulations, primarily focusing on Part 4006 (to address SECURE Act changes affecting premium rates), Part 4022 (benefits payable in terminated single-employer plans), Part 4041 (termination of single-employer plans), and Part 4044 (allocation of assets in single-employer plans).

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

  • A final rule makes clarifications and codifies policies in PBGC’s benefit payments and valuation regulations.
  • 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.
  • 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 2020.

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