PBGC Proposed Rule Would Exempt 90 Percent of Plans and Plan Sponsors from Reportable Event Requirements

The Pension Benefit Guaranty Corporation (?Ç£PBGC?Ç¥) recently issued proposed Rule 2013-07664, which would exempt most pension plans and plan sponsors from reporting many corporate and plan events under ERISA. Currently, ERISA plans and plan sponsors must report certain events to PBGC, such as active participant reductions, missed contributions, and an inability to pay benefits when due, among others. The proposed rule significantly changes the reportable event waiver structure currently in place and adds new funding-based and financial soundness safe harbors. Consequently, the proposed rule would reduce the reporting requirements of plans and plan sponsors that are financially sound and would permit PBGC to focus its resources on those plans that are at risk. The proposed rule includes a summary chart that compares the current and proposed reporting waiver structures. Additionally, the proposed rule makes electronic filing of reportable event notices mandatory. The proposed rule would apply to reportable events occurring on or after January 1, 2014. A copy of the proposed rule can be found here.