PBGC premiums in the context of a mid-year spinoff

[gle318612]

I've reviewed the 2010 PBGC Premium Payment Instructions document. I can't find examples of how one would exactly determine the participant count date for the spun off plan in a mid-year spinoff. In the Premium Payment Instructions, there is language that "premium proration is not available for overlapping premium payments resulting from spinoff". I've also looked at some PP presentations by Keightley & Ashner LLP...one dated October 21, 2007 from a presentation at the ASPPA Annual Conference, one dated october 28, 2008 at the Annual Meeting of the Conference of Consulting Actuaries and one dated June 16, 2010 at the Great Lakes Benefit Conference. All of these presentations indicate that there are duplicate premiums in all mid-year spinoffs.

While realizing that guidance could change for a 2012 spinoff, if we assume 1) the guidance for 2012 remains the same as 2010, 2) the pre-spinoff plan is a large plan and both that plan and the "spinco/spunoff" company plan are large plans post spinoff and the spinoff occurs after the fixed-rate premium filing is made for 2012 and before the Comprehensive filing is made for 2012, no VRP or other premium (other than the fixed-rate premium) is due from any of the plans, then how would the participant counts be determined for the 2012 post-spinoff filings.

I work better with illustrations...so using hypothetical participant counts..see if the below is correct and advise as to the premium filing (and participant count) of the spun-off plan for 2012. Any guidance/thoughts (including citing specific PBGC guidance) would be helpful.

The 2012 pre-spinoff plan estimated participant count is 46,000. This is the participant count as of the last day of the plan year preceding the Premium Payment Year..thus in this case the estimated count at 12-31-11. This is the count used for the 2012 fixed rate filing for that plan.

For the 2012 post-spinoff ongoing plan (same ongoing plan with the same employer as per the immediately preceding paragraph) Comprehensive filing.... assuming that the estimated participant count and the final participant count are the same, then 46,000 is used as the final participant count for that plan. No additional premium is due from that plan from that paid in the fixed rate filing.

2012 post-spin off spinco/spunoff plan's "only?" 2012 filing...what would the participant count be (and when measured) assuming say only 7,500 participants

came from the pre-spin off plan to the plan created by the spinoff (spinco's plan).

Is the reference to duplicate premiums in the law firm presentations (which is consistent with "what I have heard) tied to the participant count/fixed rate filings?

Thanks so much. Spinoffs are "new" for me.