1 

PBGC Retrospective Review Plan Report 

January 13, 2014 

Agency RIN 

/OMB 

control 

number

Title of 

initiative/ 

rule/ICR

Brief description Actual or 

target 

completion 

date 

Anticipated savings in costs 

and/or information collection 

burdens, together with any 

anticipated changes in 

benefits (please quantify, to 

the extent feasible, and also 

specify baseline, time 

horizon, and affected groups)

Progress updates and anticipated 

accomplishments 

PBGC 1212-

AB26

Premium 

Rates; 

Payment of 

Premiums; 

Reducing 

Regulatory 

Burden

On January 3, 2014, 

PBGC published a 

final rule is moving 

the flat-rate

premium due date 

for large plans (i.e., 

plans with 500 or 

more participants) 

than to the same 

date as the variablerate premium due 

date for such plans. 

The final rule 

addressed part of a 

regulatory reform 

proposal to simplify 

and streamline 

premium due dates, 

coordinate the due 

date for terminating 

plans with the 

termination process, 

provide for relief 

from penalties, and 

make other changes. 

The large-plan 

flat-rate 

premium due 

date change is 

effective for 

plan years 

starting on or 

after 

January 1, 

2014. 

Target date for 

publishing a 

final rule 

addressing the 

other aspects 

of the proposal 

is March 2014. 

Those changes 

are also 

expected to be 

applicable for 

plan years 

starting on or 

after 

January 1, 

2014. 

The average net gain under the 

final rule for large plans is 

estimated to be $12,350 per 

year per plan. The majority of 

this net gain ($11,300) is due to 

increased earnings for large 

plans on plan assets as a result 

of the filing due date changes. 

In the aggregate, the net gain is 

estimated to be $69,616,950

($63,698,100 due to increased 

earnings).

Expected benefits from other 

aspects of the proposal would 

include reduced actuarial fees 

and reduced burden of meeting 

a filing deadline that may occur 

before completion of actuarial 

valuation for funding purposes. 

Proposed rule published July 23, 2013, 

http://www.pbgc.gov/documents/2013-

17561.pdf. 

Final rule addressing part of the proposal

published January 3, 2014, 

http://www.pbgc.gov/documents/2013-

31109.pdf. 
 

2 

Agency RIN 

/OMB 

control 

number

Title of 

initiative/ 

rule/ICR

Brief description Actual or 

target 

completion 

date 

Anticipated savings in costs 

and/or information collection 

burdens, together with any 

anticipated changes in 

benefits (please quantify, to 

the extent feasible, and also 

specify baseline, time 

horizon, and affected groups)

Progress updates and anticipated 

accomplishments 

PBGC 1212-

AB06

Reportable 

Events; 

Pension 

Protection Act 

of 2006

PBGC is 

streamlining 

reporting 

requirements under 

ERISA section 4043 

to limit reports to 

circumstances when 

there is real risk to 

pension plans and 

PBGC cannot get 

the information in 

other ways. 

Proposed rule 

published 

April 3, 2013. 

13 comments 

received. 

Public hearing 

held June 18, 

2013. This 

was PBGC’s 

first-ever 

regulatory 

hearing. 

Target date for 

final rule June 

2014.

The proposal would exempt 

more than 90% of plans and 

sponsors from many

requirements. It would reduce 

burden for low-risk sponsors 

and plans, while targeting plans 

that present higher risk. PBGC 

expects that the proposal would 

dramatically reduce the 

proportion of unnecessary 

filings under the current 

regulation. 

PBGC is developing the final rule, taking 

into account the comments and discussion at 

the public hearing.
 

3 

Agency RIN 

/OMB 

control 

number

Title of 

initiative/ 

rule/ICR

Brief description Actual or 

target 

completion 

date 

Anticipated savings in costs 

and/or information collection 

burdens, together with any 

anticipated changes in 

benefits (please quantify, to 

the extent feasible, and also 

specify baseline, time 

horizon, and affected groups)

Progress updates and anticipated 

accomplishments 

PBGC 1212-

AB20

Liability for 

Termination of 

SingleEmployer 

Plans; 

Treatment of 

Substantial 

Cessation of 

Operations; 

ERISA section 

4062(e) 

The statute provides 

for reporting of and 

liability for certain 

substantial 

cessations of 

operations by 

employers that 

maintain singleemployer plans. In 

light of comments

on its 2010 proposed 

rule on the 

applicability and 

enforcement of 

ERISA section 

4062(e), PBGC 

intends to repropose. 

PBGC is 

considering 

reducing the 

reporting burden and 

tying 4062(e) to risk 

through the same 

approaches being 

considered for 

reportable events.

Target date for 

NPRM 

(re-proposal) 

June 2014. 

PBGC is analyzing the 

potential savings from a reproposal. 

On November 2, 2012, PBGC announced 

4062(e) enforcement guidelines, under 

which PGGC will not enforce in the case of 

financially strong companies or small plans, 

http://www.pbgc.gov/news/press/releases/pr

12-32.html. As a result, more than 90 

percent of companies that sponsor pension 

plans will not face enforcement efforts. 
 

4 

Agency RIN 

/OMB 

control 

number

Title of 

initiative/ 

rule/ICR

Brief description Actual or 

target 

completion 

date 

Anticipated savings in costs 

and/or information collection 

burdens, together with any 

anticipated changes in 

benefits (please quantify, to 

the extent feasible, and also 

specify baseline, time 

horizon, and affected groups)

Progress updates and anticipated 

accomplishments 

PBGC 1212-

AB25

Termination of 

Multiemployer 

Plans 

(29 CFR part 

4041A) 

Duties of plan 

sponsor 

following 

mass 

withdrawal (29 

CFR part 

4281) 

Mergers and 

transfers 

between 

multiemployer 

plans 

(29 CFR part 

4231)

Based on its review, 

PBGC determined 

that it can reduce or 

eliminate:

• Annual 

valuation 

requirements 

for small 

terminating 

multiemployer 

plans. 

• Certain notice 

requirements 

for terminated 

multiemployer 

plans that 

determine that 

they will be 

insolvent for a 

plan year.

• Unnecessary 

filing 

requirements 

on merged 

multiemployer 

plans.

Target date for 

NPRM 

February 2014. 

Based on PBGC’s experience, 

the combined estimated annual 

savings of the three rule 

changes would be about 

$460,000.

Streamlining and reforming 

notice requirements may 

reduce administrative costs to 

both PBGC and plans and help 

facilitate transactions that have 

the effect of strengthening 

multiemployer plans, thereby 

preserving benefits for 

participants and removing 

barriers to business 

transactions. 

NPRM is in final stages of development.
 

5 

Response to June 22, 2012 OMB Memorandum: 

PBGC’s inventory of currently approved information collections (i.e., paperwork and reporting burdens) imposes about 113,750 annual burden hours for all of 

PBGC’s programs,

1 of which 87,500 hours result from locating and paying participants (primarily benefit applications) and 8,200 hours result from payment of 

premiums. The number of respondents for these two information collections is largely outside of PBGC’s control, and the hour burden per response is low. 

PBGC is continually looking for ways to reduce paperwork and reporting burdens, simplify filings, and provide relief for small businesses and plans. As 

discussed below, PBGC is identifying three initiatives to significantly reduce paperwork and reporting burden: 

• Reportable Events. PBGC’s 2013 Reportable Events proposal would dramatically reduce unnecessary reporting by sponsors and plans. It would 

exempt more than 90% of plans and sponsors from some requirements. PBGC is developing the final rule. 

• Premiums. PBGC’s 2013 premium proposal (part of which was finalized January 3, 2014) would significantly reduce the annual burden of premium 

filings for plans of all sizes. 

• ERISA section 4010. PBGC is considering regulatory changes to Annual Financial and Actuarial Information Reporting requirements under ERISA 

section 4010 that could result in decreased reporting burden for plan sponsors. Such changes include waiving reporting for plans that must file 4010 

information solely on the basis of either a statutory lien resulting from missed required contributions of over one million dollars or outstanding funding 

waivers exceeding the same amount. PBGC believes other changes to 4010 reporting, such as targeting reporting more closely to the risk of plan 

termination, would more significantly reduce burden and has recommended those changes to Congress. 

Updated responses to public comments

• Reportable Events. Commenters on the 2013 proposal suggested areas for improvement in the sponsor financial soundness safe harbor and other areas, 

such as the plan financial soundness safe harbor, controlled group monitoring, and public company reporting. In developing the final rule, PBGC is 

taking the comments into consideration. For example, PBGC is considering ways to make the sponsor safe harbor more flexible and easier to use, to 

provide a more appropriate plan financial soundness safe harbor, and to minimize the burden of monitoring controlled groups. 

Premiums. PBGC received six comment letters on the July 23 proposal. All of the commenters approved of the proposal, and one specifically urged 

that it be made effective for 2014. The commenters also had suggestions for additional changes PBGC might make in its premium regulations or 

procedures. Because none of those suggestions dealt with proposed change to the large-plan flat-rate premium due date and because that change was by 

far the most time-sensitive aspect of the proposal, PBGC finalized it ahead of the other changes in the proposal. PBGC expects to deal with the other 

aspects of the July 23 proposal in a separate final rule to be issued in time to provide all plans with adequate advance guidance for timely compliance 

with the new procedures in 2014. If the situation changes, PBGC will advise the public as appropriate. 

 

1 See http://www.reginfo.gov/public/do/PRAMain .