Over the last few years, all three federal agencies that regulate retirement plans have been focusing on missing participants; advisers have a key role to play when it comes to helping clients ensure compliance.
Rather than issuing stand-alone announcements each time IRS grants disaster relief, PBGC is streamlining the process by issuing a permanent announcement regarding its own disaster relief that comes into play each time IRS grants relief in response to a particular disaster.
In its notice of intent to request OMB approval, the agency is asking for stakeholder comments,
Senator Sherrod Brown calls it imperative "to find a bipartisan solution to the crisis threatening 1.3 million Americans."
Over the next decade, the financial condition of PBGC’s Multiemployer Insurance Program is expected to steadily worsen, leaving very little chance that the program will remain solvent beyond the next decade.
Reeder, who is in the middle of his five-year term, has been advocating for changes to help the PBGC’s programs, but the president has nominated Gordon Hartogensis—who, the senators say, seems to have little to no prior experience relevant to the pension system and the work of the PBGC—to replace Reeder.
Multiemployer pension plan insolvencies will obviously be harmful to the participants and beneficiaries of the plans in question, but the loss of the significant economic momentum provided by retirees spending their pension plan assets could also harm the wider economy.
The agency says this consultation will assist it and the plan sponsor in exploring whether a waiver of one or more filing obligations is appropriate, identifying potential issues preventing a distress termination of a particular plan, and may indicate that commencement of an agency-initiated termination of the pension plan is warranted.
Under the Bipartisan Budget Act of 2018, the bicameral committee is charged with improving the solvency of multiemployer pension plans and the Pension Benefit Guarantee Corporation.
The Pension Benefit Guaranty Corporation (PBGC) is issuing guidance to assist multiemployer pension plans that request PBGC review of alternative plan rules for satisfying employer withdrawal liability.
The amendments to regulations on guaranteed benefits and asset allocation would incorporate statutory changes to the rules for participants with certain ownership interests in a plan sponsor.
However, the agency says it is uncommon for it to assess information penalties.
DB plan sponsor clients may want to consider a strategy to reduce PBGC variable-rate premiums.
A final rule opens the current program to terminated DC plans and small professional service defined benefit plans.
The new table is for single-employer pension plans undergoing distress or involuntary termination with valuation dates falling in 2018.
A federal district court denied a DB plan sponsor's attempt to pass liability for improper plan termination to its plan provider.
The agency has requested that the OMB continue to allow it to do so.
The new forms include important modifications.