Regulatory Updates
Regulatory Updates provide quick access to employee benefit regulations, rulings and other guidance released by governmental agencies in the U.S. and Canada.
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PBGC Proposes Changes to Regulations on Premiums and Termination of Single-Employer Plans
Jan 21, 2025, 06:00
by
Amanda Wilke
The Pension Benefit Guaranty Corporation (PBGC) issued a proposed rule on miscellaneous technical corrections, clarifications, and improvements to its regulations, including its regulations on premium rates, premium due dates, and termination of single-employer plans. The changes are a result of PBGC’s ongoing retrospective review of the effectiveness and clarity of its rules and of statutory changes.
The proposed rule would amend regulations on:
- Premium Rates, by codifying the changes of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) applicable to cooperative and small employer charity (CSEC) plans and certain community newspaper plans;
- Payment of Premiums, by revising the due date for the final premium for terminating plans to be the earlier of the normal premium due date or 45 days after the date the postdistribution certification is filed; and
- Termination of Single-Employer Plans, by setting due dates for the standard termination notice and notice of intent to terminate where the plan administrator has not provided a proposed termination date, and by adding additional criteria majority owners must meet to waive their benefits if they are owners through constructive ownership.
Other clarifications, corrections, and updates relate to:
- Filing, Issuance, Computation of Time, and Record Retention;
- Reportable Events and Certain Other Notification Requirements;
- Allocating Unfunded Vested Benefits to Withdrawing Employers;
- Partitions of Eligible Multiemployer Plans; and
- Special Financial Assistance by PBGC.
Comments are due March 24, 2025.