By Pension and Benefits Editorial Staff
The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) extend approval, with modifications, of its collection of information for annual reporting. The PBGC is proposing modifications to the 2020 Schedule R and its related instructions. According to the PBGC, the modifications will affect multiemployer defined benefit plans covered by ERISA Title IV. The PBGC is also proposing minor modifications to the Form 5500 series to improve the accuracy of reported information.
Multiemployer defined benefit plans are required to include in their annual reports the number of plan participants for whom no contributions were made by an employer as an employer of the participants for the plan year and for each of the two preceding plan years. The information is reported on Line 14 on Schedule R. The PBGC has found that a majority of plans that are required to report this information do not provide accurate information. Currently, multiemployer plans are required to count inactive participants using the last contributing employer counting method. The PBGC is proposing to change the Schedule R to provide multiemployer plans with a choice of the last contributing employer counting method and two proposed counting methods: the alternative method and the approximation method.
The PBGC is also proposing that when a plan reports a number on Line 14b or 14c that differs from the number reported for the plan year immediately preceding the plan year, the plan would be required to submit an attachment with an explanation of the reason for the change.
The PBGC is requesting that the OMB approve this collection of information, with modifications, for three years. Comments should be submitted by December 13, 2019, and be sent to the Office of Information and Regulatory Affairs, Office of Management and Budget, Attention: Desk Officer for Pension Benefit Guaranty Corporation, via electronic mail at [email protected] or by fax to 202-395-6974.
Source: 84 FR 61658.
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