May 2, 2019
In the May 2, 2019 Federal Register, the Pension Benefit Guaranty Corporation (PBGC) published a final regulation intended to simplify certain reporting and disclosure obligations of terminated and/or insolvent multiemployer plans.
The final regulation:
In response to public comments, PBGC made modifications to clarify its forms and instructions associated with the final regulation, but the final regulation reflects, in large part, PBGC’s proposed regulation issued on July 16, 2018.
The final regulation is generally applicable as of July 1, 2019. Changes to the annual actuarial valuation requirement apply to valuations prepared for plan years ending after July 1, 2019. The withdrawal liability reporting requirement applies to plan years ending after July 1, 2019.
Implications for Sponsors of Terminated and/or Insolvent Plans
Although the final regulation applies only to terminated and/or insolvent plans, PBGC’s efforts to make certain reporting and disclosure requirements more efficient should reduce plan administrative costs, a development that will be helpful to sponsors of plans facing financial distress.
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