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5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.
The PBGC has issued a preliminary plan for the review of its existing regulations. The Preliminary Plan for Regulatory Review was developed in response to an Executive Order issued by the President on January 18, 2011 on improving regulations and regulatory review (see CCH Pension Plan Guide Newsletter, Report No. 1873, January 31, 2011). Among other things, the Executive Order directed agencies to develop and submit a preliminary plan within 120 days that will explain how they will periodically review existing significant regulations to identify any regulations that can be made more effective or less burdensome in achieving regulatory objectives.
On April 1, 2011, the PBGC requested comments from the public on how best to conduct its analysis of existing regulations and how best to identify those regulations that might be modified, streamlined, expanded or repealed.
Initial list of rules for review
Taking into account public comments on its April 1 comment request and internal feedback, the PBGC intends to review the following regulations:
Reportable Events. The PBGC said that it was already planning to re-propose reportable events rules with an emphasis toward reducing the unnecessary burdens on employers and plans. For example, the PBGC is considering whether and to what extent it can take advantage of other existing reporting requirements and methods to avoid burdening companies and plans. Specifically, the PBGC is looking into how to implement an industry suggestion that different reporting requirements should apply in circumstances where the risk to the PBGC is low or compliance is especially burdensome.
ERISA §4062(e) rules. In light of industry comments, the PBGC will also reconsider its 2010 proposed rule that would provide guidance on the applicability and enforcement of ERISA §4062(e). The statutory provision provides for reporting of and liability for certain substantial cessations of operations by employers that maintain single-employer plans.
Voluntary Correction Program. In response to comments, the PBGC said that it will consider a suggestion to expand its current voluntary correction program for errors related to filings and other requirements. The PBGC will consider this suggestion in conjunction with changes to its current premium and information penalty policies. Expansion of the program could potentially encourage compliance and reduce compliance costs.
Premiums. The PBGC indicated that it will review parts 4006 (Premium Rates) and 4007 (Payment of Premiums) to determine whether changes could be made that would enable small plans to streamline their premium and funding valuation procedures and in doing so reduce actuarial fees.
Changes to improve plan and PBGC administration. The PBGC plans to review selected aspects of 29 CFR parts 4022 (Benefits payable in terminated single-employer plans) and 4044 (Allocation of assets in single-employer plans), and of Subchapter 1 (Withdrawal Liability for Multiemployer Plans) to eliminate obsolete provisions, simplify language, and fill in gaps where guidance would be helpful to the public and the relevant operating departments.
Elimination of obsolete disclosure regulation. The PBGC indicated that it will remove part 4011 (Disclosure to Participants) from its regulations, since that regulation does not apply to plan years beginning on or after January 1, 2007. Eliminating this regulation will reduce the amount of time and cost spent on identifying items that plan sponsors need to comply with.
Annual financial and actuarial information reporting rules. In conformity with several comments on regulatory review, the PBGC will review part 4010 (Annual Financial and Actuarial Information Reporting) and the filing application to see whether it can reduce filing burdens while preserving its ability to receive critical information.
In addition, the PBGC will review a regulation as soon as practicable following a fundamental change in circumstances that affects the regulation or in response to comments from stakeholders or relevant operating Departments. Significant regulations will be reviewed at least every ten years.
Comments sought
The PBGC encourages comments as it finalizes its regulatory review plan. Comments, identified by "Regulatory Review," may be submitted by any of the following methods:
All comments will be posted on www.pbgc.gov.
Source: PBGC website, May 27, 2011.
For more information, visit http://www.wolterskluwerlb.com/rbcs.
For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.
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