Benefits Forward » PBGC Guidance

2009 PBGC Data Book

administrator — Mon, 23 Aug 2010 19:40:38 +0000

Pension Benefit Guaranty Corporation (PBGC) has released the Pension Insurance Data Book 2009, which offers information on statistical trends related to defined benefit retirement plans in the private sector. The new edition features a detailed article on the smaller of the agency’s two pension insurance programs, which provides financial assistance to insolvent multiemployer pension plans.

Link http://www.pbgc.gov/docs/2009databook.pdf

Technical Update 10-3

administrator — Thu, 12 Aug 2010 19:13:25 +0000

The PBGC issues Technical Update 10-3 which provides guidance on simplified methods for the application of the requirement under the PPA that a multiemployer plan in critical status disregard certain benefit reductions in determining the plan’s unfunded vested benefits for purposes of determining withdrawal liability.

Document Excerpt

Section 432(e)(9) of the Internal Revenue Code (”Code”), added by the Pension Protection Act of 2006, directs PBGC to provide guidance on simplified methods for the application of the statutory requirement that multiemployer plans in critical status disregard certain benefit reductions in determining the plan’s unfunded vested benefits for purposes of determining an employer’s withdrawal liability under section 4201 of ERISA. This Technical Update provides such guidance.

Link http://www.pbgc.gov/practitioners/law-regulations-informal-guidance/content/tu17263.html

Disaster Relief for Parts of Texas

administrator — Thu, 12 Aug 2010 13:59:34 +0000

The PBGC has announced disaster relief for parts of Texas affected by hurricane Alex.

Document Excerpt

Pension Benefit Guaranty Corporation (”PBGC”) is waiving certain penalties and extending certain deadlines in response to Hurricane Alex that occurred beginning June 30, 2010, in Texas.

Link http://www.pbgc.gov/practitioners/law-regulations-informal-guidance/disaster-relief-announcements/dr17284.html

Disaster Relief for Parts of Kentucky

administrator — Thu, 12 Aug 2010 13:55:31 +0000

The PBGC announces disaster relief for parts of Kentucky affected by mudslides, severe storms and flooding.

Document Excerpt

Pension Benefit Guaranty Corporation (”PBGC”) is waiving certain penalties and extending certain deadlines in response to the severe storms, flooding and mudslides that occurred beginning July 17, 2010, in Kentucky.

Link http://www.pbgc.gov/practitioners/law-regulations-informal-guidance/disaster-relief-announcements/dr17283.html

Proposed Regulations Revising Debt Collection Rules

administrator — Mon, 26 Jul 2010 14:39:11 +0000

The PBGC has issued proposed regulations designed to revise its procedures to conform with those under the Federal Debt Collection Improvement Act and with other Federal debt collection laws.

Document Excerpt

This proposed rule would revise the Pension Benefit Guaranty Corporation’s regulation on debt collection to conform to the Debt Collection Improvement Act of 1996, the Federal Claims Collection Standards and other legal requirements applicable to the collection of non-tax debts owed to PBGC. This proposed rule would add salary offset and administrative wage garnishment to the collection methods allowed under the current regulation and make other changes to strengthen PBGC’s debt collection program. Link http://edocket.access.gpo.gov/2010/pdf/2010-18008.pdf

PBGC Releases August Lump Sum Interest Rate

administrator — Fri, 16 Jul 2010 01:13:14 +0000

The PBGC announces the interest rate to be used in valuing lump sum payments in August.

Document Excerpt

The immediate interest rate for valuing lump sum payments for the month of August 2010 is 2.25%. The deferred interest rate I₁ is 4.00%, I₂ is 4.00%, and I₃ is 4.00%. (The immediate interest rate for July 2010 was 2.50% for lump sum payments; the deferred interest rate I₁ was 4.00%, I₂ was 4.00%, and I₃ was 4.00%).

Link http://www.pbgc.gov/rates/interest.html

PBGC Provides Disaster Relief for West Virginia

administrator — Fri, 09 Jul 2010 21:50:11 +0000

The PBGC provides disaster relief for parts of West Virginia affected by severe storms, flooding, mudslides and landslides.

Document Excerpt

Pension Benefit Guaranty Corporation (”PBGC”) is waiving certain penalties and extending certain deadlines in response to the severe storms, flooding, mudslides and landslides that occurred beginning June 12, 2010, in West Virginia.

Link http://www.pbgc.gov/practitioners/law-regulations-informal-guidance/disaster-relief-announcements/dr17254.html

Interest Rate for Valuing July Lump Sums

administrator — Sat, 19 Jun 2010 17:09:50 +0000

The PBGC has announced the interest rate for valuing lump sum payments in July.

Document Excerpt

The immediate interest rate for valuing lump sum payments for the month of July 2010 is 2.50%. The deferred interest rate I₁ is 4.00%, I₂ is 4.00%, and I₃ is 4.00%. (The immediate interest rate for June 2010 was 2.75% for lump sum payments; the deferred interest rate I₁ was 4.00%, I₂ was 4.00%, and I₃ was 4.00%).

Link http://www.pbgc.gov/rates/interest.html

Technical Update 10-2

administrator — Thu, 17 Jun 2010 13:15:21 +0000

As promised, the PBGC has released Technical Update 10-2 providing relief for those electing to use the alternative premium funding target to calculate the variable rate premium but failing to check the correct box.

Document Excerpt

This Technical Update provides relief to plans that intended to elect to use the alternative premium funding target to calculate the variable rate premium (VRP) but did not check Box 5 on the comprehensive premium filing,[1] if certain conditions are met and the plan notifies PBGC, as described below.

Link http://www.pbgc.gov/practitioners/law-regulations-informal-guidance/content/tu17239.html

Technical Update 10-1

administrator — Fri, 11 Jun 2010 16:05:03 +0000

The PBGC releases Technical Update 10-1 regarding Schedule R filings to Form 5500 for multiemployer plans.

Document Excerpt

This Technical Update clarifies the Line 14 Instructions for the Schedule R (Form 5500) and provides partial reporting relief for completing Line 14 for the 2009 plan year.

Link http://www.pbgc.gov/practitioners/law-regulations-informal-guidance/content/tu17229.html