Pension & Benefits News PBGC requests comments on information collection for payment of premium regs
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Friday, September 20, 2019

PBGC requests comments on information collection for payment of premium regs

By Pension and Benefits Editorial Staff

The PBGC has issued a notice of intent to request that the Office of Management and Budget (OMB) approve a modification of a collection of information under its regulations on the payment of premiums for three years.

The PBGC intends to modify the 2020 premium filing and instructions to require that plans offering a lump-sum window separately report the number of participants in pay status who were offered and elected a lump sum in addition to the related current requirement for participants not in pay status. In addition, the PBGC intends to change the reporting period for risk transfer activity (lump-sum windows and annuity purchases). Rather than the period falling between 60 days before the prior filing and 60 days before the current filing, the reporting period will be the prior premium payment year.

The PBGC intends to modify the filing instructions for a plan that reports that a premium filing will be the last for the plan and checks the “cessation of covered status” box as the reason. Currently, this plan must provide an explanation as to why they believe coverage has ceased and then the PBGC typically contacts the plan to verify that coverage has ceased. The PBGC is proposing to add to the instructions that a plan that claims cessation of coverage status should complete a coverage determination request. The PBGC also expects to make routine changes to the filing instructions.

The PBGC states that it is proposing to make changes relating only to the risk-transfer and final filing question to the premium filing requirements first effective for the 2020 plan year. A document showing what those questions and related instructions would look like is available on the PBGC’s website.

Comments must be submitted by September 30, 2019. Comments may be submitted by any of the following methods:

  • Federal eRulemaking Portal: http://www.regulations.gov. Follow the online instructions for submitting comments.
  • Email: [email protected].
  • Mail or Hand Delivery: Regulatory Affairs Division, Office of General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005-4026.

SOURCE: 84 FR 37694.

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