Pension & Benefits News PBGC releases new form for coverage determination requests
Thursday, August 8, 2019

PBGC releases new form for coverage determination requests

By Pension and Benefits Editorial Staff

The Pension Benefit Guaranty Corporation (PBGC) has issued a new form and instructions for requesting a determination about whether a plan is covered under ERISA Title IV, called Request for Coverage Determination. The form has been approved by the Office of Management and Budget and is now available for use. This form was created to streamline and simplify the coverage determination process.

A plan is covered Under ERISA Title IV if it is described in ERISA Sec. 4021(a) and does not meet one of the exemptions from coverage listed in ERISA Sec. 4021(b)(1)-(13). The form highlights the four plan types for which coverage determinations are most frequently requested: (1) church plans as listed in ERISA Sec. 4021(b)(3); (2) plans that are established and maintained exclusively for the benefit of plan sponsors’ substantial owners as listed in ERISA Sec. 4021(b)(9); (3) plans covering, since September 2, 1974, no more than 25 active participants that are established and maintained by professional services employers as listed in ERISA Sec. 4021(b)(13); and (4) Puerto Rico-based plans within the meaning of ERISA Sec. 1022(i)(1).

The instructions explain that in limited circumstances, under a one-year pilot program, employers may also use the form to request an Opinion Letter about whether a plan in the process of being created is likely to be covered by the PBGC. The PBGC states that it’s Coverage webpage has been updated accordingly.

SOURCE: PBGC website

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