The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) extend approval of collections of information under PBGC’s regulation on Reportable Events and Certain Other Notification Requirements, with modifications.
The PBGC is proposing in this renewal request that all reportable events filings include controlled group information, company financial statements, and the plan’s actuarial valuation report. Currently there are five reportable events where some or all of that information isn’t required. All three types of information would be added to two of these events (‘‘Active Participant Reduction’’ and ‘‘Distribution to a Substantial Owner’’). One type of information would be added to two events (‘‘Transfer of Benefit Liabilities’’ and ‘‘Change in Contributing Sponsor or Controlled Group’’), and two types to one event (‘‘Extraordinary Dividend or Stock Redemption’’). The agency says the additional information is needed to help it determine a defined benefit (DB) plan sponsor’s ability to continue to maintain its DB plan.
Section 4043 of the Employee Retirement Income Security Act (ERISA) requires DB plan administrators and plan sponsors to report certain plan and employer events to the PBGC. The reporting requirements give agency notice of events that may indicate plan or employer financial problems. In 2015, the agency issued final rules which provide most plan sponsors with increased flexibility to determine whether a waiver from reporting will apply.
OMB approval of this collection of information expires November 30, and the PBGC is requesting that OMB extend its approval for another three years, with the requested modifications.The agency is also asking for public comment on its request. Comments are due November 13. More information is provided in the Federal Register.