The Pension Benefit Guaranty Corporation released Dec. 8 its
semiannual regulatory agenda, addressing rulemakings related to
penalties, mortality assumptions, and payment matters.
PBGC has issued a number of policy statements about penalties over
the last few years, the agenda said. For the convenience of the
public, the agency is replacing those policy statements with an
updated and expanded set of information penalty policies codified in
its regulations. The agenda indicates final action on this by June
2007.
PBGC is amending its regulation on missing participants to conform
the mortality assumptions in that regulation to the updated mortality
assumptions under its regulation on allocation of assets in single
employer plans, the agenda said.
The agency also is amending its regulation on the duties of plan
sponsors following mass withdrawal to make a minor change in the
mortality assumptions used for deferred annuities, it said.
A final rule on both of these is
pending.
PPA Changes.
The agenda lists the following proposed rules for action as a
result of the passage of the Pension Protection Act:
• Financial
Information:A proposed rule would amend and clarify PBGC
regulations on annual financial and actuarial information reporting is
expected in May 2007.
• Premium
Rates:A proposed rule would change the requirements for computing
the variable rate premium is expected in May
2007
Other Proposed Rules.
The agenda lists the following other proposed rules for action:
• Reportable
Events.A proposal would add two new reportable events. One is an
event requiring filing of Form 8-K with the Securities and Exchange
Commission and the other pertains to the decline in the credit rating
of a controlled group member below investment grade. A proposed rule
is expected in May 2007. The 8-K is a document required by the SEC to
announce certain significant changes in a public company, such as a
merger or acquisition, a name or address change, bankruptcy, change of
auditors, or any other information which a potential investor ought to
know about.
• Multiemployer
Amendments.A proposed rule would consider amending multiemployer
regulations to strengthen reporting requirements and make other
clarifying changes, and is expected in July 2007.
• Allocation
of Assets.A proposed rule would amend PBGC's benefit valuation and
asset allocation regulations by improving its valuation assumptions
and methods, and is expected in July 2007.
The agenda is scheduled for publication in the Federal
Register on Dec. 11.
By Michael W. Wyand