Loan & Distribution Specialist AimPoint Pension
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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Regional Vice President of Sales The Retirement Plan Company
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Compass
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Bates & Company, Inc.
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AimPoint Pension
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House Committee Subpoenas PBGC Director, Seeking Details About $127 Million SFA Overpayments
Committee on Education and the Workforce, U.S. House of Representatives Mar. 27, 2024 "In the cover letter accompanying the subpoena, [Committee Char Virginia Foxx (R-NC)] writes: 'PBGC's March 11 letter ... referred to what would appear to be an 11th-hour request for information from PBGC to plans. The [DOL's] subsequent statement on March 14 that multiemployer pension plans are obligated to repay these overpayments ... and does not explain the months of wasted resources and delay that PBGC perpetrated; nor does DOL's statement shed light on PBGC's reasoning for its position.' " Tags: Multiemployer Plans • PBGC |
PBGC Has 'Turned Around' Potential Crisis, Director Says
American Retirement Association [ARA] Mar. 21, 2024 "[PBGC] Director Gordon Hartogensis defended PBGC actions and said that it is 'providing crucial pension relief' in a March 20 appearance before the House Subcommittee on Health, Employment, Labor, and Pensions.... Much of the discussion concerned how the PBGC has been disbursing funds through the Special Financial Assistance (SFA) program." Tags: Funding of DB Plans • Multiemployer Plans • PBGC |
House HELP Subcommittee Hearing: 'Examining the Policies and Priorities of the PBGC'
Subcomittee on Health, Employment, Labor and Pensions [HELP], Committee on Education and the Workforce, U.S. House of Representatives Mar. 20, 2024 Video of March 20 hearing. Opening statement by Rep. Bob Good (R-VA) and Testimony of The Honorable Gordon Hartogensis, Director, PBGC. Tags: PBGC • Retirement Plan Policy |
House HELP Subcommittee to Hold Oversight Hearing: Examining the Policies and Priorities of the PBGC
Committee on Education and the Workforce, U.S. House of Representatives Mar. 13, 2024 " 'The [PBGC] represents some of the worst of the Biden administration's incompetence and misuse of taxpayer dollars,' said Chairman Good. 'Its failure to implement standard controls and verification procedures has resulted in millions of dollars in inaccurate payments -- at least $127 million of which was sent to fund pensions for dead participants. This hearing will shine a much-needed light on PBGC's mismanagement and ineffectiveness.' " Tags: PBGC |
PBGC Sues to Terminate New York City Non-Profit DB Plan
PLANSPONSOR; free registration may be required Mar. 6, 2024 "The Sheltering Arms organization shut down in 2023, and the PBGC seeks to become its defined benefit plan's statutory trustee." [PBGC v. Sheltering Arms Children and Family Services, Inc., No. 24-1608 (E.D.N.Y. complaint filed Mar. 4, 2024)] Tags: Funding of DB Plans • PBGC |
Aligning the PBGC's Single-Employer Premium Structure with Its Objectives (PDF)
American Academy of Actuaries Mar. 6, 2024 12 pages. "While private-sector single-employer pension plan security has been sustained over the past half century, PBGC premiums have contributed to the significant decline in the number of covered plan participants, which can be regarded as a major systemic failure. PBGC's strong funding level provides an opportunity to rethink the premium structure to better align it with all aspects of its mission." Tags: PBGC • Retirement Plan Policy |
Central States Pension Fund Letter Requesting DOL, Treasury Guidance on Voluntary Repayment of SFA Payments for Deceased Participants (PDF)
Central States, Southeast and Southwest Areas Pension Fund Mar. 1, 2024 "Although PBGC's regulations provide the agency authority to reclaim SFA payments in certain circumstances, PBGC has stated that it lacks the authority to recoup the $127 million at issue. Consequently, the Fund has considered whether it can voluntarily return a portion of the SFA but has concerns that doing so could potentially have severe consequences, including personal liability for the Fund's fiduciaries and the loss of the Fund's tax-exempt status. Therefore, we request formal guidance answering two key questions. [1] Would the Fund violate the exclusive benefit rule under ERISA Section 403 and Code Section 401(a)(2) by returning a portion of the SFA?.... [2] Would the fiduciaries of the Fund violate their duties of prudence and loyalty under ERISA Section 404 by returning a portion of the SFA?" Tags: Funding of DB Plans • Multiemployer Plans • PBGC |
House Committee Again Requests PBGC Provide Information About Inaccurate SFA Payments (PDF)
Committee on Education and the Workforce, U.S. House of Representatives Feb. 27, 2024 "The Committee on Education and the Workforce is continuing its investigation into the [PBGC's] failure to safeguard taxpayers' money by overpaying $127 million to a multiemployer pension plan corresponding to deceased participants.... PBGC's February 9, 2024, response both failed to address these concerns and to provide responsive materials. With this letter, we insist that PBGC provide information responsive to the Committee's investigation." Tags: Multiemployer Plans • PBGC |
Reducing PBGC Premiums in 2024 (and 2023): The Standard/Alternative Method Election
October Three Consulting Feb. 26, 2024 "For 2024, the spread between the amount of premiums paid under the standard method vs. the alternative method is only about one-third as large, but this can still translate to millions of dollars for some plans. And, some sponsors who did not (or were unable to) elect the standard method for 2023 may still be able to reduce their 2023 PBGC variable-rate premium in certain circumstances." Tags: Funding of DB Plans • PBGC |
PBGC 2021 Pension Insurance Data Tables Installment (PDF)
Pension Benefit Guaranty Corporation [PBGC] Feb. 13, 2024 "The tables summarize information on PBGC's Single-Employer and Multiemployer Insurance Programs and the defined benefit pension system, which includes time-series data on PBGC's finances and operations. The data on PBGC-insured defined benefit plans includes information on the number of plan participants, plan funded status, hybrid plans, frozen plans, and risk transfer activity. Additional information was added this year regarding Special Financial Assistance payments." [Also available: Excel format] Tags: Funding of DB Plans • Multiemployer Plans • PBGC • Retirement Plan Design |
Text of PBGC Submission to OMB and Request for Comments on Information Collection Enabling PBGC to Pay Benefits to Participants and Beneficiaries.
Pension Benefit Guaranty Corporation [PBGC] [Official Guidance] Feb. 7, 2024 "PBGC is proposing the addition of three new forms ... Form 713RBD and Form 714RBD relate to elections to withdraw employee contributions for participants and beneficiaries who are at or beyond their Required Beginning Dates. Form 721RBD relates to elections of single payments for non-spouse beneficiaries who are at or beyond their Required Beginning Dates. PBGC is proposing to remove Form 718, 'Installment Payment Agreement,' because PBGC no longer administers installment agreements for benefit overpayments. PBGC is proposing to remove Form 719 for electing or changing tax withholding from annuity benefit payments since participants are using [IRS] Form W-4P, 'Withholding Certificate for Periodic Pension or Annuity Payments.' " Tags: PBGC • Retirement Plan Administration |
PBGC Launches New and Improved E-Filing Portal
Pension Benefit Guaranty Corporation [PBGC] [Official Guidance] Feb. 1, 2024 PBGC has launched its new and improved e-Filing Portal. Key changes include a new, more secure, login process and a streamlined look and feel across all applications (e.g., 4010 and reportable event filings, certain multiemployer plan filings, SFA applications). For additional information, including information about who to contact with questions, please see: e-Filing Portal Login.gov FAQs andPBGC"s e-Filing Portal User Guide. Tags: PBGC • Reporting to Government Agencies • Retirement Plan Administration |
PBGC's Federal Information Security Modernization Act of 2014 (FISMA) Audit Report (PDF)
Office of Inspector General [OIG], Pension Benefit Guaranty Corporation [PBGC] Feb. 1, 2024 33 pages. "PBGC has an effective security program; however, some individual metric questions were rated below managed and measurable. It is important for PBGC to continue to focus on remediating its cybersecurity deficiencies to maintain its effective rating." Tags: PBGC |
Bill Introduced to Recoup Pension Bailout Sent for Deceased Participants, Require Verification for Future Payments
Committee on Education and the Workforce, U.S. House of Representatives Jan. 31, 2024 "The [proposed] legislation would require the PBGC to verify past and future pension bailout applications by cross-checking plan participation lists against the [Social Security Administration's (SSA) Full Death Master File (Full DMF)], ensuring taxpayer dollars are not paying pension bailouts to multiemployer pension plans for deceased individuals. It would further require the PBGC to recoup from multiemployer plans any ghost pensions the plans received as windfalls from taxpayer dollars." Tags: Multiemployer Plans • PBGC |
PBGC Reporting and Disclosure Requirements
Pension Benefit Guaranty Corporation [PBGC] [Official Guidance] Jan. 24, 2024 On January 23, 2024, EBSA, the IRS, and PBGC jointly published a request for information (RFI) soliciting public input on the effectiveness of existing reporting and disclosure requirements for retirement plans, as required by Section 319 of SECURE 2.0. As noted in the RFI, a summary of PBGC’s reporting and disclosure requirements is posted at the linked page. Tags: PBGC • Retirement Plan Administration |
Text of IRS Final Regs: Update to Minimum Present Value Requirements for Defined Benefit Plan Distributions
Internal Revenue Service [IRS] [Official Guidance] Jan. 18, 2024 "These regulations provide guidance on changes made by the Pension Protection Act of 2006 to the prescribed interest rate and mortality table and other guidance, including rules regarding the treatment of preretirement mortality discounts and Social Security level income options." Tags: Funding of DB Plans • PBGC |
House Committee Letter to PBGC Questioning Refusal to Recover $127 Million in Taxpayer Money Sent to Ghost Pensions (PDF)
Committee on Education and the Workforce, U.S. House of Representatives [Opinion] Jan. 17, 2024 "The Committee on Education and the Workforce (Committee) is investigating reckless mismanagement at the [PBGC] that led to sending a $127 million overpayment to one multiemployer plan. This overpayment raises the concern that more overpayments exist.... By all appearances, PBGC intended to shift taxpayer dollars to the Central States Pension Fund in an unauthorized windfall and refuses to get this money back" Tags: Multiemployer Plans • PBGC |
Text of PBGC Adjustment of Civil Penalties for Inflation
Pension Benefit Guaranty Corporation [PBGC] [Official Guidance] Jan. 12, 2024 "The increases in the civil monetary penalties under sections 4071 and 4302 of [ERISA] provided for in this rule apply to such penalties assessed after January 12, 2024." Tags: PBGC • Retirement Plan Administration |
PBGC Announces Upcoming Changes to E-Filing Portal
Pension Benefit Guaranty Corporation [PBGC] [Official Guidance] Jan. 9, 2024 "On February 1, 2024, PBGC will launch a new and improved e-Filing Portal. Key changes include a new, more secure, login process and a streamlined look and feel across all applications (e.g., 4010 and reportable event filings, certain multiemployer plan filings, SFA applications)." Tags: PBGC • Reporting to Government Agencies • Retirement Plan Administration |
Text of PBGC Comprehensive Premium Filing Instructions for 2024 Plan Years (PDF)
Pension Benefit Guaranty Corporation [PBGC] [Official Guidance] Jan. 8, 2024 68 pages. "What's New: The filing requirements for 2024 are almost identical to the filing requirements for 2023.... [K]ey changes to note for 2024 ... [1] Single-employer plans other than CSEC plans: The Flat-rate Premium is $101 per-participant, up from $96; The cap on the Variable-rate Premium is $686 per person, up from $652.... [2] Multiemployer Plans: The Flat-rate Premium is $37 per-participant, up from $35.... [3] The Premium Customer Service email address has changed from pbgc_premiums@custhelp.com to premiums@pbgc.gov. Emails sent to the old address will be forwarded to the new mailbox." Tags: PBGC • Retirement Plan Administration |
Participant and Plan Sponsor Advocate Says Major Changes Needed at PBGC
American Retirement Association [ARA] Jan. 8, 2024 "[P]lan sponsors have complained about longstanding issues such as: [1] case review delays; [2] the absence of oversight and management; [3] communication lapses; [4] departmental coordination issues; and [5] an overall lack of transparency about PBGC processes and procedures. The report notes that ... plan sponsors applying for a distress termination under the business continuation test encounter 'a lengthy and inefficient review process' that can take months or years." Tags: PBGC |
PBGC Seeks Nominations for Advisory Committee Seat
Pension Benefit Guaranty Corporation [PBGC] Jan. 3, 2024 "[PBGC] invites interested parties to submit nominations by February 16, 2024, for a spot on the agency's Advisory Committee representing the interests of the general public.... This position will be appointed by the president of the United States for a three-year term. Nominees must have experience with defined benefit plans, the administration or advising of pension plans, or in related fields." Tags: PBGC |
2023 Annual Report of the PBGC Participant and Plan Sponsor Advocate (PDF)
Participant and Plan Sponsor Advocate, Pension Benefit Guaranty Corporation [PBGC] Dec. 29, 2023 35 pages. "One unfortunate underlying theme in both participant and plan sponsor encounters with the agency is an overall sense of mistrust by agency personnel who interface with the regulated community on a routine basis.... The agency has an extraordinary $44.6 billion surplus that is far in excess of anything that the agency needs.... [T]he agency has not shown leadership to help policymakers and legislators come to terms with options to relieve this extraordinary financial burden that is driving plan sponsors from the defined benefit structure, threatening the retirement security of upcoming generations who lack the economic security of a lifetime income in retirement. " Tags: PBGC • Retirement Plan Policy |
Text of PBGC Requests for Nominations: Advisory Committee
Pension Benefit Guaranty Corporation [PBGC] [Official Guidance] Dec. 29, 2023 "The Advisory Committee consists of seven members appointed by the President from among individuals recommended by the PBGC Board of Directors ... The Advisory Committee members are ... [1] two representatives of employee organizations; [2] two representatives of employers who maintain pension plans; and [3] three representatives of the general public." Tags: PBGC |
PBGC OIG Financial Statement Audit Management Letter Report, Fiscal Year 2023 (PDF)
Office of Inspector General, Pension Benefit Guaranty Corporation [PBGC] Dec. 27, 2023 "During the audit EY became aware of deficiencies in internal control, other than a material weakness or significant deficiency, and other matters that are opportunities to strengthen PBGC's operations. This management letter summarizes these deficiencies and recommendations. The issues noted in this report are not significant ... The purpose of this letter is solely to describe the scope of [EY's] testing of internal control over financial reporting and compliance, and the result of that testing." Tags: PBGC |