Onsite with the PBGC

[RCK]

Our plan is going through the PBGC Premium Compliance program. After a long delay, they announced that they want to make arrangements for an onsite visit.

Has anyone been through this process, and if so what was the focus?

[Andy the Actuary]

Sorry (or rather happy) I have not been through this process.

However, approximately how many participants in the plan? Did the plan pay the variable rate premium? Did the filing elect an exception (e.g., full-funding limitation) to paying the variable rate premium.

In short, were there any red flags or is this simply another instance of being selected randomly to wear the brown crown?

[RCK]

The participant count on the most recent PBGC filing was 30,000+. We paid a big variable premium.

All I can see as a red flag is that we asked for a refund because the plan "year" was only 10 months long, so we got to prorate.

[Andy the Actuary]

The participant count on the most recent PBGC filing was 30,000+. We paid a big variable premium.

All I can see as a red flag is that we asked for a refund because the plan "year" was only 10 months long, so we got to prorate.

I get it. A few of my clients had post-termination audits conducted by the PBGC though they never visited.

[Guest Grant]

Our plan is going through the PBGC Premium Compliance program. After a long delay, they announced that they want to make arrangements for an onsite visit.

Has anyone been through this process, and if so what was the focus?

RCK, we went through this with a large client years ago.

They came in and asked for an outline for all the corporate structure, divisions, subsidiaries, etc., then asked to see the "file drawer" of data for each one.

The client gave them access to an asian employee in HR who barely spoke English, then the rest of them fled.

They were looking to make sure we were reporting all employees of the corporation.

I don't recall any significant findings.

Presumably the process is more modernized now, but maybe not.