PBGC proposed rules

[Belgarath]

Saw the following today - this could, if it is made reasonably user-friendly, be very good news in that a terminating DC plan with lost participants should presumably be able to transfer the funds to the PBGC. I've been waiting for this! I wondered if anyone had heard as to whether the DOL will be coordinating with the PBGC to deem such transfer as an appropriate fiduciary decision with a liability shield?

The Pension Benefit Guaranty Corporation (PBGC) has released its semiannual regulatory agenda for Fall 2012, which outlines regulations that have been selected for amendment during the next year.

Proposed rule stage

Among the items in the PBGC’s proposed rule stage are:

• Proposed amendments that would amend the PBGC’s regulation on Reportable Events and Certain Other Notification Requirements (part 4043) to conform to changes under the Pension Protection Act of 2006 (PPA; P.L. 109-280) and the PBGC’s regulations on Premium Rates (part 4006).

• A proposed rule to implement section 410 of the PPA, which allows certain terminating plans not covered by the existing Missing Participants program to participate in that program.

[david rigby]

Here's hoping they charge DC plans an annual fee to pay for it!

Stupid regulation!

Stupid legislation!

[Belgarath]

I'm assuming (foolish me) that there will be a fee of some sort assessed against the account to pay for it - only makes sense. But depending upon how much money the PBGC must "spend" administering this, and/or locating lost participants, it might actually be a net gain - if a lot of these people never claim their funds, then I'd hope they would escheat to the PBGC at some point. Oh well, I guess I'll just have to wait and see what is proposed.