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PBGC RULE RILES PENSION SPONSORS

By Stephen Barlas
November 30, 2015
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Business groups are unhappy with the Pension Benefit Guaranty Corporation’s (PBGC) final rule on reportable events. “Reportable events” signal financial problems for the pension plan or the company that sponsors it, which could risk the pensions. The new waiver structure in the final rule, “Reportable Events and Certain Other Notification Requirements,” focuses on higher-risk plans and sponsors and should reduce filing requirements for more than 90% of lower-risk plans and sponsors. Business groups are unhappy, however, because some reportable events waivers are based on whether plans and their sponsors will be able to maintain their pension plan, whereas the old regulation only considered plan funding levels.

 

Business groups are unhappy with the Pension Benefit Guaranty Corporation’s (PBGC) final rule on reportable events. “Reportable events” signal financial problems for the pension plan or the company that sponsors it, which could risk tThe ERISA (Employee Retirement Income Security Act) Industry Committee (ERIC) is unhappy with the new rule. Annette Guarisco Fildes, president and CEO of ERIC, says, “This new regulation creates a burden for sponsors that is unnecessary and only adds to the complicated regulatory morass that has driven employers away from offering defined benefit pension plans.”

 

Stephen Barlas has covered Washington, D.C., for trade and professional magazines since 1981 and since 1984 for Strategic Finance and its predecessor Management Accounting. You can reach him at sbarlas@verizon.net.
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