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CCH® PENSION — 07/28/11

PBGC semiannual regulatory agenda addresses cash balance plans, missing participants, and airline plans

The Pension Benefit Guaranty Corporation (PBGC) has released its semiannual regulatory agenda for Spring 2011, which outlines regulations that have been selected for amendment during the next year, as well as long-term actions.

Proposed rule stage

Among the items in the PBGC's proposed rule stage are:

• Proposed amendments to its regulations prescribing rules on valuing benefits in terminating cash balance and other hybrid plans.
• A proposed rule to implement section 410 of the Pension Protection Act of 2006 (PPA; P.L. 109-280), which allows certain terminating plans not covered by the existing Missing Participants program to participate in that program.
• A proposed rule to implement section 402(g)(2) of the PPA, which applies to plans of commercial airlines that elect the 17-year funding relief under the PPA and terminate within ten years of the election.

Final rule stage

Among the items in the PBGC's final rule stage are:

• Rules providing guidance on the phase-in period for "unpredictable contingent event benefits," such as a plant shutdown.
• Amendments to the PBGC's regulation on Liability for Termination of Single-Employer Plans to provide guidance as to what constitutes an ERISA §4062(e) event, on the reporting of such an event to the PBGC, and on the determination and satisfaction of liability arising from such an event.

Long-term actions

The items slated for Long-Term Actions include the following:

• Assessment of and relief from information penalties.
• A proposed rule to amend the PBGC's regulation on Payment of Premiums (29 CFR part 4007).
• A proposed amendment to the PBGC's benefit valuation and asset allocation regulations.

Source: The PBGC Agenda for Spring 2011 is available at www.RegInfo.gov.

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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