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Senators 'Express Concern' to PBGC About Rejecting Certain Premium Filings (PDF)

Excerpt: Defined benefit plan sponsors that intended to pay their 2009 plan premiums to the Pension Benefit Guaranty Corporation using an alternative method, but failed to check the correct box, are being unfairly penalized, four senators said in a letter sent to the agency ... 'As a result, plans are facing millions of dollars in additional premiums, as well as interest and penalties,' the letter said. [Click on the title under 'Items of Interest' on the target page.]

De-Risking and Rescue Plan Petitions Expected to Rise (PDF)

"The continuing demise of single-employer plans may get an even greater push in 2016 as plan sponsors consider the benefits of de-risking in the face of rising plan premiums combined with the realization that participant lump-sum payouts won't be quite the bargain once required mortality-table life expectancy changes take hold in 2017. The year is also likely to include a relative flood of financially struggling multiemployer plans filing petitions with the Treasury Department -- up from the two known filings in 2015 -- saying they needed to cut participants' accrued pension benefits to save their plans from future insolvency."

PBGC Seeing Increase in Litigation Against Agency by Participants, Official Says (PDF)

Find title under 'Items of Interest' on the target page. Excerpt: PBGC's Morris said many participants were unhappy about the difference in the amount of benefits they were expecting at retirement under their previously viable defined benefit plan and the amount they received after their plan was taken over by PBGC.

Section 4062(E) Liability in Transition: Planning for an Uncertain Future (PDF)

10 pages. "Both the PBGC moratorium and the HELP Committee's action, which follow a number of noteworthy 4062(e) developments over the past eight years, appear to reflect an increasing momentum for reform. These two key developments highlight the importance of the need for awareness of -- and effective planning regarding -- potential 4062(e) issues in a regulatory and legislative environment that could change significantly in the near-term -- whether as a result of policy or regulatory changes within PBGC or as a result of the enactment of reform legislation, or some combination of both."

Senate Passes Legislation on ERISA 4062(e); Bill May See Action in Lame Duck Session (PDF)

"A bill unanimously passed by the Senate that would clarify what constitutes a 'substantial cessation of operations' under ERISA Section 4062(e) may see action in the House during Congress's lame duck session. Under S. 2511, passed by senators Sept. 16, a substantial cessation of operations would be clarified to ... change the liability trigger from 20 percent of plan participants to 15 percent of all employees of the employer. They also specify that a cessation of operations must be 'permanent.' These clarifications are supported by the business community, which say the regulations proposed to implement this law have been too broad, too expensive and make business planning difficult."

Despite Systemic Problems at PBGC, Advocate Optimistic About Agency Change (PDF)

"Although defined benefit plan sponsors confront persistent and systemic problems in dealing with the PBGC, there are signs of positive change coming from the agency, according to the annual report from the PBGC's liaison ... Among the areas of concern cited in the report were the agency's unnecessarily adversarial tone, its aggressive second-guessing of private business operations and its expansive use of its early warning program and reportable events requirements."

PBGC Expands Scope of Early Warning Program (PDF)

"Historically, Early Warning Program cases have been opened because of a specific transaction of concern to PBGC.... Under the new basis for possible action, an employer facing financial challenges may be surprised to find itself the target of an Early Warning Program investigation -- and possibly an Early Warning Program demand -- even in the absence of a specific transaction."

Section 4062(e) Liability Reformed: A Summary and Analysis of the New Law (PDF)

"A new 4062(e) era has now begun. For many employers, the new law will lead to far greater certainty, and far more favorable consequences, than existed under the old law. And for all employers, an understanding of the new law is essential in order to evaluate any 4062(e) implications of potential business transactions."

PBGC Intends to Develop New Version of Proposed Rule on Reportable Events (PDF)

PBGC staff members said informally that the agency is assessing how it can revise the reportable events regulation to make it less burdensome and considering whether small plans should be subject to separate reportable events requirements. [Click on the link under 'Items of Interest' on the target page.]