Final rule on USERRA Benefits Under Title IV. On November 17, 2009, PBGC published in the Federal Register a final rule that amends PBGC's benefit payments regulation to implement provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). USERRA provides that an individual who leaves a job to serve in the uniformed services is generally entitled to reemployment by the previous employer and, upon reemployment, to receive credit for benefits, including employee pension plan benefits, that would have accrued but for the employee's absence due to the military service.

Under PBGC's current benefit payments regulation, a benefit is guaranteed only if the participant satisfies the conditions for entitlement to the benefit on or before the plan's termination date. The final rule provides that so long as a service member is reemployed within the time limits set by USERRA, even if the reemployment occurs after the plan's termination date, PBGC will treat the service member as having satisfied the reemployment condition as of the termination date. This will ensure that the pension benefits of reemployed service members, like those of other employees, will generally be guaranteed for periods up to the plan's termination date.

The final rule will be effective December 17, 2009. The change will apply to reemployments under USERRA initiated on or after December 12, 1994. Once the final rule is effective, PBGC will begin adjusting final benefit determinations of affected participants and make back payments with interest. (11/17/09)

Flat-Rate Premium Increase for Plan Year 2010: The per-participant flat-rate premium for plan year 2010 is $35.00 for single-employer plans (up from $34.00 for plan year 2009) and $9.00 for multiemployer plans (unchanged from plan year 2009). By law, the premium rates are adjusted for inflation each year based on changes in the national average wage index. (10/16/09)

Small Plan Reporting Relief for Missed 2009 Quarterlies: On April 30, 2009, PBGC issued Technical Update 09-3, which provides relief from part 4043 reporting requirements if a required quarterly contribution for the 2009 plan year is not timely made to a plan, and the failure to make the contribution is not motivated by financial inability. The Technical Update waives reporting in such cases if the plan has fewer than 25 participants and provides a simplified reporting requirement if the plan has at least 25 but fewer than 100 participants. (04/30/09)

4010 Reporting - Alternative Form-of-Payment Assumption for Determining Benefit Liabilities:  On March 25, 2009, PBGC issued Technical Update 09-2, which allows 4010 filers to determine benefit liabilities for 4010 reporting purposes using the form of payment assumption described in 29 CFR § 4044.51 (generally an annuity form of payment).  This is an alternative to the form-of-payment-assumption under § 4010.8(d)(2)(i) of PBGC's final regulation on 4010 reporting, which requires filers to use the form-of-payment assumption for determining the minimum required contribution. (03/25/09)

4010 Filings:  The e-4010 filing application and related materials have been updated to reflect changes in the March 16, 2009 final rule. The application is now available to accept post-Pension Protection Act of 2006 filings. (03/20/09)

4010 Final Rule:  On March 16, 2009, PBGC published a final rule that amends its regulation on Annual Financial and Actuarial Information Reporting (29 CFR part 4010).  The final rule implements Pension Protection Act of 2006 changes to ERISA section 4010 and makes other modifications and clarifications to the reporting requirements.  PBGC expects to update the e-4010 filing application and related materials (e.g., filing instructions) within a few days.  Until the application is updated, filers should not attempt to enter data for post-PPA filing; such data will be lost when the application is updated.  However, first-time filers may log on to the application to set up an account and familiarize themselves with the application, through http://www.pbgc.gov/practitioners/reporting-and-disclosure/content/page14529.html.  The first filings under the new rules are due April 15, 2009. (03/16/09)

Single-employer plan Annual Funding Notices: Under section 101(f) of ERISA and guidance issued by the Department of Labor, starting with plan years beginning on or after January 1, 2008, single-employer plans with liabilities that exceed plan assets by $50 million or more must provide PBGC with a copy of the Annual Funding Notice by the Annual Funding Notice due date.  Single-employer plans with liabilities that exceed plan assets by less than $50 million must provide PBGC with a copy of the Annual Funding Notice within 30 days of receiving a written request from PBGC.  See Department of Labor Field Assistance Bulletin No. 2009-01 (Feb. 10, 2009),  http://www.dol.gov/ebsa/pdf/fab2009-1.pdf.

Single-employer plans required to provide PBGC with a copy of the Annual Funding Notice should e-mail it to single-employerAFN@pbgc.gov, or send it to:

PBGC
ATTN: Single-Employer AFN Coordinator
1200 K Street, NW, Suite 270
Washington, DC 20005-4026

For more information on reporting and disclosure requirements under section 101(f) of ERISA, including a model notice, see www.dol.gov/ebsa.  For questions on PBGC requirements regarding the Annual Funding Notice, call 202-326-4070 or e-mail single-employerAFN@pbgc.gov. (03/13/09)

Practitioner Filing Reminders Now Available: In response to customer requests, PBGC can now send automatic e-mails to help practitioners remember filing deadlines. To sign up for one or more PBGC filing reminder(s), visit the Practitioner Filing Reminders Web page, click on the month(s) that you would like to receive a reminder and enter your e-mail address. PBGC will send a filing reminder to your e-mail address by the third workday of each month you select. (03/6/09)

2009 Premium Filings:  The inflation adjusted flat premium rate is $34.00 per participant for single-employer plans.  The flat premium rate for multiemployer plans is $9.00 per participant.  Information about how to e-file via My PAA (e.g., FAQs and Demos) is on the Online premium filing (My PAA) page of our Web site. The premium payment instructions (including illustrative forms) for both Estimated Flat-rate Filings and Comprehensive Filings for plan year 2009 are posted to the Premium Instructions and Forms page of our Web site. (12/08 & 01/09) 

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