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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 Pension Benefit Guaranty Corporation (PBGC) has issued PBGC Technical Update 09-4 for plan years beginning in 2010 providing guidance on compliance with the reportable events requirements of ERISA §4043 and related regulations.
The Technical Update extends the guidance provided in PBGC Technical Updates 09-1 and Technical Update 09-3 for 2010 plan years. The PBGC said it expects to supersede the guidance in this Technical Update with final regulations amending the reportable events rules "sometime during 2010."
Guidance is provided regarding (1) funding-related determinations for purposes of waivers, extensions, and the advance reporting threshold test and (2) missed quarterly contributions.
Funding-related determinations
Regarding funding-related determinations for purposes of waivers, extensions, and the advance reporting threshold test, the PBGC provides that generally, for purposes of the reportable events regulation, a plan's unfunded vested benefits (UVBs) and the value of its assets and vested benefits are determined for a plan year beginning in 2010 in the same manner as for variable-rate premiums (VRPs) for the preceding plan year. Thus, for instance, in the case of a calendar year plan with a January 1 valuation date, the VRP values determined as of January 1, 2009, for purposes of the 2009 variable rate premium are also used for applying the $50 million advance reporting threshold test for events becoming effective in 2010.
Missed quarterly contributions
Regarding missed quarterly contributions, the PBGC provides that, generally, for purposes of the reportable events regulation, if a required quarterly contribution for the 2010 plan year is not timely made to a plan, and the failure to make the contribution is not motivated by financial inability, the reporting requirement under PBGC Reg. §4043.25 is waived if the plan has fewer than 25 participants for the prior plan year.
If the plan has at least 25 but fewer than 100 participants for the prior plan year, the reporting requirement under PBGC Reg. §4043.25 will be considered satisfied if a notice is filed with PBGC by the time the first missed-quarterly reportable event report for the 2010 plan year would otherwise be due. The notice would be required to state the following information:
(1) the name of the plan and the EIN and Plan Number most recently reported for the plan in a PBGC premium filing;
(2) the date the 2010 plan year began;
(3) that a quarterly contribution to the plan for the 2010 plan year has not been (or will not be) timely made;
(4) that financial inability to make the contribution is not the reason for not making the contribution;
(5) the last day for satisfying the minimum funding requirement for the plan for the 2010 plan year;
(6) that the filer understands that if the minimum funding requirement for the plan is not satisfied by the final payment date, a reportable event notice must be filed under the reportable events regulation; and
(7) the name, telephone number, and e-mail address of a person (who may be the filer) whom the PBGC may contact for additional information.
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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