[December 11, 2006 (Volume 71, Number 237)] [Unified Agenda] From the Federal Register Online via GPO Access [frwais.access.gpo.gov] [DOCID:ua11de06_002-198] [Page 72915-72916] Statement of Regulatory and Deregulatory Priorities The Pension Benefit Guaranty Corporation (PBGC) protects the pensions of over 44 million working men and women in about 30,000 private defined benefit plans. The PBGC receives no funds from general tax rev [[Page 72916]] Simplify Filing by Increasing Use of Electronic Filing The PBGC introduced optional electronic filing of premiums in 2004 with an online filing system that employs PBGC software. In June 2006, the PBGC issued a final rule, effective July 1, 2006, that requires electronic filing of premium information for plans with 500 or more participants for plan years beginning on or after January 1, 2006 and for all plans for plan years beginning on or after January 1, 2007. The PBGC will grant case-by-case exemptions for filers that demonstrate good cause. Online filers will have a choice of using private-sector software that meets the PBGC's published standards or using the PBGC's software. Electronic premium filing will simplify filers' paperwork, improve accuracy of the PBGC's premium records and database, and enable more prompt payment of premium refunds. The PBGC is incorporating the new changes to the flat-rate and variable-rate premiums into software so that it will be easy to comply with the premium changes under the new law. The PBGC also is developing regulations to address implementation of the new termination premium. Plan actuarial and employer financial information required to be reported to the PBGC by employers with large amounts of pension underfunding is required to be filed electronically under a final regulation issued in March 2005. Electronic filing reduces the filing burden, improves accuracy, and better enables the PBGC to monitor and manage risks posed by these plans. The PBGC is developing a regulation to incorporate changes to the reporting requirements under the Pension Protection Act. Relief for Small Businesses A large percentage of the plans insured by the PBGC are small or maintained by small employers. The PBGC takes the special needs and concerns of small entities into account in developing its regulatory policies. For example, mandatory electronic filing of premiums will apply six months later to plans with fewer than 500 participants than to larger plans. Also, the May 2004 proposed revisions to the penalty structure for failure to comply with the Participant Notice requirements scale down the penalty rate based on the number of plan participants. In addition, a regulation implementing the cap on the variable-rate premium for plans of small employers will be among the first regulations that the PBGC issues under the Pension Protection Act. The PBGC will continue to review its regulations to look for further simplification opportunities. BILLING CODE 7709-01-S [[Page 72917]]