Benefits Byte

October 18, 2019

PBGC Provides Reporting Relief for Underfunded Pension Plans

In an effort to “reduce the burden of reporting under PBGC’s 4010 regulation,” the Pension Benefit Guaranty Corporation (PBGC) is waiving certain reporting requirements for underfunded defined benefit pension plans.

Section 4010 of ERISA requires certain underfunded plans to report identifying, financial and actuarial information to the PBGC. Specifically, Section 4010.9 of the associated regulations sets forth the reporting requirements with respect to financial information to be included with a 4010 filing for each member of the filer’s controlled group (excluding exempt entities). In general, financial statements for the fiscal year ending within the information year (including balance sheets, income statements, cash flow statements, and notes to the financial statements) must be provided for each non-exempt controlled group member.

As outlined in PBGC Technical Update 19-1, the agency is now waiving the requirement under Section 4010.9(b)(2) to report separate, member-specific financial information for each non-exempt member of the filer’s controlled group, as long as the filer’s ultimate parent is not a foreign entity.

Technical Update 19-1 also provides instructions for completing the form under PBGC’s e-filing portal when taking advantage of the waiver.

This issuance continues the PBGC’s recent efforts to reduce burdens on defined benefit plan sponsors. On June 27, the agency issued a proposed rule that would, among other things, formally eliminate the separate filing requirement and clarify other reporting waivers (See the July 3 Benefits Byte for more details).

For more information on PBGC regulations and compliance, contact Lynn Dudley, senior vice president, global retirement and compensation policy, or Jan Jacobson, senior counsel, at 202-289-6700.