PBGC Announces Regulatory Review to Help Plan Sponsors
FOR IMMEDIATE RELEASE
August 23, 2011
WASHINGTON—The Pension Benefit Guaranty Corporation today announced efforts to streamline regulations that affect pension plans.
PBGC Director Josh Gotbaum said regulations shouldn't burden companies that voluntarily provide pensions, and that the agency is doing everything it can to keep and expand its customer base.
"Pensions are complicated, but regulations don't have to be," Gotbaum said. "By cutting through needless red tape, PBGC is encouraging businesses to set up and keep pension plans."
As part of the Obama administration's government-wide effort to save U.S. companies billions of dollars announced today, PBGC will review its regulations to:
- Cut down administrative burdens.
- Streamline the filing of premiums and information.
- Make it easier for small businesses to comply with regulations
In reviewing regulations, PBGC will ask:
- Does it do the job it sets out to do?
- Is it a burden on business?
- Are there unintended consequences?
- Are there better alternatives?
PBGC wants to involve the public more often in the process of developing regulations. To do that PBGC will hold public hearings on major regulations, rather than relying solely on written comments. PBGC also plans to provide additional means for public involvement, including on-line town hall meetings, social media, and continuing opportunity for public comment on PBGC's website.
Please view PBGC's Plan for Regulatory Review for more details.
The PBGC is a federal corporation that guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in over 27,500 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues and never has. Operations are financed entirely by insurance premiums paid by companies that sponsor pension plans and from the assets and recoveries on behalf of plans that have been assumed by PBGC.
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PBGC No. 11-54