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Practitioners

1998 Premium Package - Part H General Instructions for Schedule A

The instructions in this part give you the general instructions and requirements for filling out the Schedule A that must be attached to each Form 1 for each single-employer plan.

A key point to filling out the Schedule A is the requirement for you to determine the "Filing Status" of your plan. If your plan is NOT exempt from paying the Variable Rate Premium, you must select a "Filing Method" for your plan. Your plan may be eligible for more than one filing method. However, you may select only one filing method. Under some filing methods, it may take more time to complete the Schedule A than under others. Some methods require the services of an enrolled actuary. We urge you to review this part carefully before completing Schedule A in order to take advantage of the filing method that best suits your needs.

The specific instructions for each line of the Schedule A are in Part I, Line-By-Line Instructions for Schedule A.

1. General Requirements

All single-employer plans must complete Schedule A of the PBGC Form 1. You will use Schedule A to determine the amount of the variable rate premium. For some plans, the amount will be $0. The variable rate premium (even if it is $0) must be entered on the Schedule A, line 5, and also on the Form 1, Line 15(b). You, and in some cases an enrolled actuary, must certify that the variable rate premium is correct, even if the amount is $0.

The variable rate premium is $9 per $1,000, or fraction thereof, of unfunded vested benefits as of the premium snapshot date. The vested benefits must be valued using an interest rate required by ERISA. (See Part H.6.)

We remind filers that, in the preamble to the October 5, 1988, proposed premium regulation, the PBGC stated:

Finally, the PBGC has received inquiries as to whether to include contingent benefits, such as "30-and-out" and disability benefits, in determining a plan's vested benefits. Unless a participant has met the requirements for and become entitled to receive a contingent-type benefit, the benefit is not a vested benefit for premium purposes. . . . Thus, 30-and-out benefits and disability benefits for which a participant is not immediately eligible as of the last day of the plan year preceding the premium payment year are not included in vested benefits as of that date.

53 F.R. 39200, 39201-202.

2. Failure to File Schedule A

If you fail to file a completed and signed Schedule A, we may return your entire filing along with any payment you make and the payment may be treated as not having been made. The PBGC may rely on data it obtains from other sources to estimate the variable rate amount due and you will be billed for that amount plus penalties and interest, as applicable. You may be assessed penalties under ERISA section 4071 if you fail to file.

3. Computation Date For The Variable Rate Premium

The date for the computation or determination of the variable rate premium is the premium snapshot date--the same date used for the participant count. See Part G, item 13, for examples.

4. Filing Status

If your plan is exempt from paying the variable rate premium because the plan meets the requirements of one of the items under 1(a)(1) through 1(a)(5) of Schedule A, you do not have to calculate or report unfunded vested benefits or pay a variable rate premium (see section a. below). If your plan is not exempt, you must calculate the variable rate premium on Schedule A and pay any variable rate premium owed (see section b. below).

Plans exempt from paying the variable rate premium are listed below with the line numbers on Schedule A.

PLANS EXEMPT FROM
VARIABLE RATE PREMIUM

LINE

1(a)(1).......Plans with no vested participants

(See a.(1) below.)

1(a)(2).......Section 412(i) plans

(See a.(2) below.)

1(a)(3).......Fully funded small plans (under 500

participants)

(See a.(3) below.)

1(a)(4).......Plans terminating in standard

termination

(See a.(4) below.)

1(a)(5).......Plans at full funding limit

(See a.(5) below.)

The filing methods for plans NOT exempt from paying the variable rate premium are listed below with the line numbers on Schedule A.

FILING METHODS

LINE

1(b)(1).......General Rule

(See b.(1) below.)

1(b)(2).......Alternative Calculation Method (ACM)

(See b.(2) below.)

1(b)(3).......Modified ACM for plans terminating in

distress or involuntary termination

(See b.(3) below.)

Part H General Instructions For Schedule A


The plan administrator is required to certify to the correct completion of Form 1 and Schedule A, and that any information given to the enrolled actuary is true, correct, and complete. The plan administrator must also complete a certification about compliance with participant notice requirements (see Part H.7.). Additional certifications are noted below.

a. Plans Exempt From Variable Rate Premium. The five categories of plans listed below are not required to calculate or report unfunded vested benefits on Schedule A, or to pay a variable rate premium. These plans are required only to complete lines 1 and 5 on the Schedule A indicating that the plan comes within one of the exempted categories and to provide the plan administrator and (if appropriate) enrolled actuary certifications.

(1) Plans With No Vested Participants. If a plan has no vested participants as of the premium snapshot date, the plan administrator may claim this exemption and report a $0 variable rate premium on the Schedule A.

(A) General Requirements: To claim this exemption a plan must have had no vested participants as of the premium snapshot date.
(B) Certification Requirement (in addition to plan administrator certification): None. Only the plan administrator certification is required.
(C) Size Requirement: Plans with any number of participants may claim this exemption.

(D) Instructions: For line-by-line instructions for completing Schedule A, see Part I, Subpart 1, of these instructions.

(E) Schedule A Filing Status: Check the box on Schedule A, item 1(a)(1).

(2) Section 412(i) Plans. Plans described in section 412(i) of the Internal Revenue Code and regulations thereunder are not subject to the variable rate premium and report a $0 variable rate premium on Schedule A.

(A) General Requirements: To claim the section 412(i) plan exemption, a plan must be a plan described in section 412(i) of the Code and the regulations thereunder at all times during the plan year preceding the premium payment year. If the plan is a new or newly covered plan, it must be a 412(i) plan at all times during the premium payment year through the due date for the variable rate premium.
(B) Certification Requirement (in addition to plan administrator certification): None. Only the plan administrator certification is required.
(C) Size Requirement: Plans with any number of participants may claim this exemption.
(D) Instructions: For line-by-line instructions for completing Schedule A, see Part I, Subpart 2, of these instructions.

(E) Schedule A Filing Status: Check the box on Schedule A, item 1(a)(2).

(3) Fully Funded Small Plans. Under this exemption, an enrolled actuary certifies that the plan has no unfunded vested benefits. No computations of unfunded vested benefits need be reported. The enrolled actuary simply reports a $0 variable rate premium on Schedule A.

(A) General Requirements: To claim this exemption, a plan must have fewer than 500 participants as of the premium snapshot date and no unfunded vested benefits as of that date (valued at the Required Interest Rate described in Part H.6. of these instructions).
(B) Certification Requirements (in addition to plan administrator certification): The enrolled actuary must certify on line 7(b) that the plan had fewer than 500 participants and that the plan had no unfunded vested benefits as of the premium snapshot date (valued at the Required Interest Rate described in Part H.6. of these instructions).
(C) Size Requirement: Only plans with fewer than 500 participants on the premium snapshot date may claim this exemption.
(D) Instructions: For line-by-line instructions for completing Schedule A, see Part I, Subpart 3, of these instructions.
(E) Schedule A Filing Status: Check the box on Schedule A, item 1(a)(3).

(4) Plans Terminating In Standard Terminations. Under this exemption, plans terminating in standard terminations are not subject to the variable rate premium and report a $0 variable rate premium on Schedule A.

(A) General Requirements: Plans that issued a notice of intent to terminate in a standard termination in accordance with section 4041(a)(2) of ERISA, setting forth a proposed termination date (i.e., the 60- to 90-day prospective date) that is on or before the premium snapshot date may use this method.

If the plan does not ultimately make a final distribution of assets in full satisfaction of its obligations under the standard termination, the right to use this filing method will be revoked and the premium(s) that would otherwise have been required will be due retroactive to the applicable due date(s).
(B) Certification Requirement (in addition to plan administrator certification): None. Only the plan administrator certification is required.
(C) Size Requirement: Plans with any number of participants may claim this exemption.

(D) Instructions: For line-by-line instructions for completing Schedule A, see Part I, Subpart 4, of these instructions.
(E) Schedule A Filing Status: Check the box on Schedule A, item 1(a)(4).

(5) Plans At The Full Funding Limit. As provided below, plans at the full funding limit for the plan year preceding the premium payment year are exempt from the variable rate premium and should report a $0 variable rate premium on Schedule A. Note: The rules below are for PBGC premium purposes only. The rules for tax or other purposes may differ.

(A) General Requirements: Plans may claim this exemption if, on or before the earlier of the due date for payment of the variable rate premium (see Part C) or the date the variable rate premium is paid, the plan's contributing sponsor or contributing sponsors made contributions to the plan for the plan year preceding the premium payment year in an amount not less than the full funding limitation for that preceding plan year under section 302(c)(7) of ERISA and section 412(c)(7) of the Internal Revenue Code.

The determination of whether contributions for the preceding plan year were in an amount not less than the full funding limitation under section 302(c)(7) of ERISA and section 412(c)(7) of the Code for the preceding plan year is based on the method of computing the full funding limitation, including actuarial assumptions and funding methods, used by the plan (provided these assumptions and methods met all requirements, including the requirements for reasonableness, under section 412 of the Code) with respect to the preceding plan year. In the event of a PBGC audit, the plan administrator may be required to provide documentation to establish both the computation methods used and the conformance of those methods with the requirements of Code section 412. The PBGC will report to the Internal Revenue Service any plans using assumptions and methods that appear not to meet the requirements of Code section 412.

Generally, section 302(c)(7) of ERISA and Code section 412(c)(7) define the full funding limitation as the excess of a measure of the plan's liabilities over a measure of the plan's assets. In determining whether a plan is entitled to this exemption, plan assets should not be reduced by the amount of any credit balance in the plan's funding standard account.

A plan may be entitled to this exemption if contributions were rounded down slightly from the amount of the full funding limitation. Thus, any contribution that is rounded down to no less than the next lower multiple of one hundred dollars (in the case of full funding limitations up to one hundred thousand dollars) or to no less than the next lower multiple of one thousand dollars (in the case of full funding limitations above one hundred thousand dollars) is deemed for purposes of this exemption to be in an amount equal to the full funding limitation. (NOTE: Relief may also be available where the plan's actuary rounded off de minimis amounts to determine the full funding limit. Whether the exemption applies in such circumstances would be determined under the rule discussed in the preceding paragraph, based on a review of the plan's practice with respect to the computation methods used.)

A plan may be entitled to this exemption if the sum of the contributions for the plan year preceding the premium payment year was less than the full funding limit and the contributions plus the interest credit under the Code is at least equal to the full funding limit as of the end of the plan year preceding the premium payment year.
(B) Certification Requirement (in addition to plan administrator certification): The enrolled actuary must certify on line 7(e) that the plan has met the general requirements described above.
(C) Size Requirement: Plans with any number of participants may claim this exemption.
(D) Instructions: For line-by-line instructions for completing Schedule A, see Part I, Subpart 5, of these instructions.
(E) Schedule A Filing Status: Check the box on Schedule A, item 1(a)(5).

b. Filing Methods For Non-Exempt Plans

If your plan is not exempt from the variable rate premium under section a. above, you must choose one of the three filing methods for calculating the variable rate premium. Any plan may use the "General Rule." The General Rule requires a determination of vested benefits and assets and a determination of unfunded vested benefits by an enrolled actuary as of the premium snapshot date. (For a more complete description of the requirements, see b.(1) below.)

To avoid the expense that might be involved in using the General Rule, you may wish to consider using an optional filing method. Review the requirements for each optional method to see if you can use it and whether you wish to do so.

The first optional filing method - the Alternative Calculation Method - requires only an adjustment of amounts determined as of the first day of the plan year preceding the premium payment year that are required to be reported in the plan's Form 5500, Schedule B.

The second optional filing method is a modified version of the Alternative Calculation Method for plans terminating in distress or involuntary terminations. It uses the Schedule B for the termination plan year or, if unavailable, for the preceding plan year.

(1) General Rule. Under the General Rule, an enrolled actuary determines the amount of unfunded vested benefits as of the premium snapshot date, in accordance with ERISA section 4006(a)(3)(E)(iii) and generally accepted actuarial principles and practices. The actuary may either perform a valuation as of the premium snapshot date, or adjust the results of a valuation done as of a different date to reflect any differences in plan assets, population, and provisions between the different valuation date and the premium snapshot date so that the adjusted results satisfy all of the requirements for the General Rule method. A plan's unfunded vested benefits equal the excess of: (1) the plan's current liability (within the meaning of ERISA section 302(d)(7)) determined by taking into account only vested benefits and valued at the Required Interest Rate described in Part H.6. of these instructions, over (2) the actuarial value of the plan's assets determined in accordance with ERISA section 302(c)(2) without a reduction for any credit balance in the plan's funding standard account. (Section 302(d)(7)(C)(ii) of ERISA and Code section 412(l)(7)(C)(ii) require that a plan's current liability be determined using specified mortality tables; e.g., you must use the 1983 Group Annuity Mortality table from Revenue Ruling 95-28, 1995-14 I.R.B. 4, for healthy lives.)

(i) General Requirements: The determination under the General Rule must reflect the plan's population and provisions as of the premium snapshot date. Population data may be based on an actual census or a representative sample of the plan's population. The enrolled actuary must make the determination using the same actuarial assumptions and methods used by the plan for purposes of determining the minimum funding contributions under section 302 of ERISA and section 412 of the Code for the plan year in which the premium snapshot date falls, except to the extent that other actuarial assumptions are specifically prescribed by these instructions or are necessary to reflect the occurrence of a significant event described in Part H.5. below, between the date of the funding valuation and the premium snapshot date. (If the plan does a funding valuation as of the premium snapshot date, no separate adjustment for significant events is needed.)

Under this rule, the determination of the unfunded vested benefits may be based on a plan funding valuation performed as of the first day of the premium payment year, provided that -

(A) the actuarial assumptions and methods used are those used by the plan for purposes of determining the minimum funding contributions under section 302 of the Act and section 412 of the Code for the premium payment year, except to the extent that other actuarial assumptions are specifically prescribed by these instructions or are required to make the adjustment described in paragraph (B) below; and
(B) if an enrolled actuary determines that there is a material difference between the values determined under the valuation and the values that would have been determined as of the premium snapshot date using the assumptions and methods for the plan year in which the premium snapshot date falls, the valuation results are adjusted to reflect appropriately the values as of the premium snapshot date using those assumptions and methods. (This adjustment need not be made if the unadjusted valuation would result in greater unfunded vested benefits.)

(ii) Certification Requirement (in addition to plan administrator certification): In all cases under the General Rule, an enrolled actuary must certify to the determination of the variable rate premium. In addition-

(A) in the case of a large plan (500 or more participants), if the enrolled actuary
-determines that the actuarial value of plan assets equals or exceeds the value of all accrued benefits (valued at the Required Interest Rate described in Part H.6. of these instructions); and
-elects to report the value of accrued benefits in lieu of the value of vested benefits on line 2(a) of Schedule A,

the enrolled actuary must certify to having done so on line 7(a) of Schedule A.

(B) If
-the interest rate used by the plan to value current liability was not greater than the Required Interest Rate described in Part H.6.; and
-the enrolled actuary reports the value of vested benefits at the plan's interest rate on line 2(b) of Schedule A,

the enrolled actuary must certify to the above on line 7(c) of Schedule A.
(iii) Size Requirement: Plans with any number of participants may use this method.
(iv) Instructions: For line-by-line instructions for completing Schedule A, see Part I, Subpart 6 of these instructions.
(v) Schedule A Filing Method: Check the box for item 1(b)(1).

(2) Alternative Calculation Method. This method is a simplified method intended to approximate the more precise determinations of the General Rule. It uses two formulas to calculate unfunded vested benefits as of the premium snapshot date.

The first formula adjusts the value of vested benefits for participants in pay status and deferred vested participants, as reported on Schedule B of the Form 5500 as of the first day of the plan year preceding the premium payment year, using the Required Interest Rate prescribed by ERISA. Part H.6. of these instructions tells you how to determine the Required Interest Rate that applies to your plan.

The second formula adjusts the resulting unfunded vested benefits figure for the passage of time from the first day of the plan year preceding the premium payment year to the premium snapshot date. The adjustment is necessary because, for premium purposes, unfunded vested benefits are determined as of the premium snapshot date. See the line-by-line instructions in Part I, Subpart 7, lines 2(b) and 4, for the two formulas.

If the Alternative Calculation Method is used by a plan that has 500 or more participants as of the premium snapshot date, an enrolled actuary must adjust the unfunded vested benefits to reflect the occurrence of any significant event between the first day of the plan year preceding the premium payment year and the premium snapshot date. See Part H.5. for a list of significant events.

(i) General Requirements: To use the Alternative Calculation Method, a plan must file a Form 5500 and Schedule B with the IRS, for the plan year preceding the premium payment year, that has -

(A) vested benefit values reported on lines 2b(1), 2b(2), and 2b(3);
(B) the interest rate, reported on line 6a(1), used to determine the vested benefit values;
(C) the assumed retirement age reported on line 6b; and
(D) assets reported on line 1b(2) or 2a.

(ii) Certification Requirements (in addition to plan administrator certification): For plans with 500 or more participants, an enrolled actuary must certify on line 7(d) that the unfunded vested benefits have been adjusted for the occurrence, if any, of a significant event and that the adjustment is consistent with generally accepted actuarial principles and practices.

(iii) Size Requirements: Plans with any number of participants may use this method. However, plans with 500 or more participants that use this method must report unfunded vested benefits that reflect the occurrence, if any, of significant events listed in Part H.5.

(iv) Instructions: For line-by-line instructions for completing Schedule A, see Part I, Subpart 7, of these instructions.

(v) Schedule A Filing Method: Check the applicable box under item 1(b)(2). If your plan has fewer than 500 participants, check the box for item 1(b)(2)(i). If your plan has 500 or more participants, check the box for item 1(b)(2)(ii).

(3) Modified Alternative Calculation Method For Plans Terminating In Distress Or Involuntary Terminations. Under this special rule, plans terminating in distress or involuntary terminations may use a modified version of the Alternative Calculation Method.

(i) General Requirements: The following plans may use this method:
-Plans that issue notices of intent to terminate in a distress termination in accordance with ERISA section 4041(a)(2) setting forth a proposed termination date that is on or before the premium snapshot date; or
-Plans for which the PBGC has initiated proceedings for an involuntary termination and has sought a termination date on or before the premium snapshot date.

Some plans terminating in distress or involuntary terminations may not have filed the Schedule B for the plan year preceding the premium payment year and therefore would not be able to use the Alternative Calculation Method to calculate unfunded vested benefits. This filing method allows such plans to calculate unfunded vested benefits under a variation of the Alternative Calculation Method that uses vested benefit values and asset values from an earlier Schedule B than under the Alternative Calculation Method. The Schedule B used under this special rule must be for the plan year that includes (in the case of a distress termination) the proposed date of termination or (in the case of an involuntary termination) the termination date sought by the PBGC, or, if no Schedule B is filed for that plan year, the Schedule B for the preceding plan year. The Schedule B must have the entries required for the Alternative Calculation Method, as described in Part H.4.b.(2)(i) of these instructions. (NOTE: Line item references in the Alternative Calculation Method instructions are to the 1997 Schedule B. If the Schedule B you are using under this special rule is for an earlier year with different line numbers, use the corresponding line numbers listed in Part I, Subpart 8.)


NOTE
: This method assumes (in the case of a distress termination) that the PBGC has not disapproved the termination or (in the case of an involuntary termination) that the PBGC's petition for involuntary termination has not been denied, dismissed, or withdrawn. If any of these events occurs, the plan will be treated as an ongoing plan and must file amended premium forms using another permitted filing method. If additional premiums are due, interest and penalties will be charged retroactive to the original due date(s).
(ii) Certification Requirement (in addition to plan administrator certification): Same as for Alternative Calculation Method. (See Part H.4.b.(2)(ii) of these instructions.)
(iii) Size Requirement: Same as for Alternative Calculation Method. (See Part H.4.b.(2)(iii) of these instructions.)
(iv) Instructions: For line-by-line instructions for completing Schedule A, see Part I, Subpart 8, of these instructions.
(v) Schedule A Filing Method: Check the box on Schedule A, item 1(b)(3).

5. Significant Events

a. General Rule. Plans filing under the General Rule must use actuarial assumptions and methods that reflect the occurrence, if any, of a significant event listed below between the date of the funding valuation for the plan year preceding the premium payment year and the premium snapshot date.
b. Alternative Calculation Method (ACM). Plans with 500 or more participants filing under the Alternative Calculation Method are required to reflect in the value of unfunded vested benefits as of the premium snapshot date the occurrence, if any, of a significant event listed below between the first day of the plan year preceding the premium payment year and the premium snapshot date.
c. Modified ACM For Plans Terminating In Distress Or Involuntary Terminations. Plans with 500 or more participants filing under the method for plans terminating in distress or involuntary terminations are required to reflect in the value of unfunded vested benefits as of the premium snapshot date the occurrence, if any, of a significant event listed below between the first day of the plan year for which the Schedule B being used was filed and the premium snapshot date.
d. Significant Events.
The Significant Events are:

(1) an increase in the plan's actuarial costs (consisting of the plan's normal cost under section 412(b)(2)(A) of the Code, amortization charges under section 412(b)(2)(B) of the Code, and amortization credits under section 412(b)(3)(B) of the Code) attributable to a plan amendment, unless the cost increase attributable to the amendment is less than 5% of the actuarial costs determined without regard to the amendment;
(2) the extension of coverage under the plan to a new group of employees resulting in an increase of 5% or more in the plan's liability for accrued benefits;
(3) a plan merger, consolidation or spinoff that is not de minimis pursuant to the regulations under section 414(l) of the Code;
(4) the shutdown of any facility, plant, store, etc., that creates immediate eligibility for benefits that would not otherwise be immediately payable for participants separating from service;
(5) the offer by the plan for a temporary period to permit participants to retire at benefit levels greater than that to which they would otherwise be entitled;
(6) a cost-of-living increase for retirees resulting in an increase of 5% or more in the plan's liability for accrued benefits; and
(7) any other event or trend that results in a material increase in the value of unfunded vested benefits.

6. Required Interest Rate For Valuing Vested Benefits

The Required Interest Rate to be used in valuing vested benefits of a plan under the General Rule, the Alternative Calculation Method, or the method for plans terminating in involuntary or distress terminations can be obtained by calling (202) 326-4041. The Required Interest Rate that applies to you is also printed on the top line of the mailing label used to mail your premium payment package. The rate is determined by the month in which your plan year begins. Check the month on the mailing label to make sure it corresponds to the first month of your premium payment year.

The Required Interest Rate is equal to the "applicable percentage" of the annual yield for 30-year Treasury constant maturity securities, which is reported in Federal Reserve Statistical Release G.13 and H.15, for the calendar month preceding the calendar month in which the premium payment year begins. The "applicable percentage" for 1998 premium payment years is 85 percent.

On or about the 15th of each month, the PBGC publishes in the Federal Register a list of the Required Interest Rates for the preceding 12 months.

Additionally, the National Technical Information Service provides the Required Interest Rates and other PBGC interest rates through a subscription service.

For further information, contact:

U.S. Department of Commerce
National Technical Information Service
5285 Port Royal Road
Springfield, VA 22161
Telephone: (703) 487-4630
TTY/ASCII: 1-800-877-8339 - request
connection to (703) 487-4630
Facsimile: (703) 321-8547
Order No.: SUB-9244

Required Interest Rates are also posted on the PBGC's World Wide Web site (http://www.pbgc.gov).

 

Part I Line-By-Line Instructions
For Schedule A


For Further Information, contact:

Pension Benefit Guaranty Corporation
Communications & Public Affairs Department
1200 K Street, NW
Washington, DC 20005-4026
Telephone: (202) 326-4040
TTY/ASCII: 1-800-877-8339 - request
connection to (202) 326-4040

7. Certification Of Plan Administrator

The plan administrator of a single-employer plan must sign and date the certification in item 6 of Schedule A. We may return any filing that does not have your original signature in item 6. The certification has two parts: a general certification about the correctness of your premium filing, and a certification regarding compliance with the participant notice requirements in ERISA section 4011 (29 U.S.C. 1311) and the PBGC's regulation on Disclosure to Participants (29 CFR Part 4011).

For each plan year in which a variable rate premium is payable for a plan, the plan administrator must issue a notice to participants about the plan's funding status and the limits on the PBGC's guarantee, unless the plan is exempt from the notice requirement under ERISA and the Disclosure to Participants regulation. The participant notice is due no later than two months after the Form 5500 due date (or extended due date) for the prior plan year. For purposes of determining whether the participant notice was timely issued, if any due date (or extended due date) falls on a Saturday, Sunday, or legal holiday, the applicable due date is the next business day.

The certification relates to the participant notice requirement for the plan year preceding the premium payment year. You must check box (a), (b), or (c). If you check box (c) (e.g., because a required participant notice was not issued or was issued late), you must attach an explanation and check the box in item 19 of Form 1.

NOTE: If your plan had no variable rate premium for the plan year preceding the premium payment year, the participant notice requirement did not apply for that year and you can check box (a). Other exemptions are described in the Disclosure to Participants regulation. Note in particular that the regulation contains exemptions for certain new and newly-covered plans.