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Technical Update 06-2: Extension of Reporting Relief for Certain Employers Based on Use of Corporate Bond Index for Section 4010 Gateway Test

July 12, 2006

For certain employers, this Technical Update extends the reporting relief provided in Technical Update 06-1.

I. Background.

Technical Update 06-1 waived reporting under section 4010 of ERISA for certain employers that would not have to file based on using an interest rate of 85% of the annual rate of interest on amounts invested conservatively in long term investment grade corporate bonds. The relief applied to information years ending on or after December 31, 2005, and on or before June 30, 2006.

In that Technical Update, the PBGC stated that reporting is waived for certain employers because pending legislation created uncertainty as to which interest rate will be applicable for determining if reporting under section 4010 of ERISA is required.

Because of continuing uncertainty, this Technical Update 06-2 extends the relief provided in Technical Update 06-1 as provided below.

II. Reporting Relief.

Reporting is waived for filings under 29 CFR part 4010 for information years ending on or after July 1, 2006, and on or before December 30, 2006, provided no filing would be required if, for purposes of the 4010 Gateway Test, the PFEA 85% Corporate Rate is used for valuing vested benefits for plan years ending on or after December 31, 2005. (All terms are as defined in Technical Update 06-1.)

This Technical Update has no effect on the determination of premiums or on any other reporting requirements.

III. PBGC Contact Points.

For questions about this Technical Update, contact James L. Beller, Jr. of the Legislative and Regulatory Department at (202) 326-4000, ext. 3865, or or Amy Viener of the Policy, Research and Analysis Department at (202) 326-4000, ext. 3919, or Questions about specific section 4010 filings should be directed to Ruth Williams of the Department of Insurance Supervision and Compliance (202) 326-4000, ext. 6744, or