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PBGC Guidance Regarding the Reportable Events Regulation

December 14, 2010
For purposes of the funding-related determinations used in the waivers, extensions, and advance reporting threshold tests in the reportable events regulation, the PBGC announced that a plan's unfunded vested benefits and the value of its assets and vested benefits are determined for a plan year beginning in 2011 in the same manner as for variable-rate premiums for the preceding plan year. The PBGC also announced that for purposes of the reportable events regulation, if a required quarterly contribution for the 2011 plan year is not timely made to a plan, and financial inability to make the contribution is not the reason for not making the contribution, the reporting requirement (1) is waived if the plan has fewer than 25 participants for the prior plan year and (2) if the plan has at least 25 but fewer than 100 participants for the prior plan year, will be considered satisfied if a simplified notice is filed with the PBGC. The simplified notice must be filed by the time the first report regarding the missed contribution for the 2011 plan year would otherwise be due. A final rule regarding the reportable events regulation will be issued sometime during 2011. Technical Update 10-4 can be found here.
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