WASHINGTON-The Pension Benefit Guaranty Corporation announced today that it will waive penalties for late payment of 2011 premiums. The agency is also granting other premium-related relief as part of a continuing effort to ease regulatory burdens on its customers.
"PBGC does what it can to help companies keep their pension plans," said PBGC Director Josh Gotbaum. "One way we do this is by being flexible and responsive, and giving companies a break when it makes sense to do so. This relief is part of that ongoing effort."
The relief is in response to the President's Executive Order mandating federal agencies to both improve regulations and the process used to review them, and feedback from pension professionals. Today's announcement follows PBGC's Plan for Regulatory Review, made public on Aug. 22, 2011.
Companies that pay their premium up to seven days past the due date will not have to pay a penalty to PBGC. In addition, the agency is offering relief in connection with alternative premium funding target elections.
A full explanation of the relief, including information on the plan years to which the relief applies, will be published in a Federal Register notice September 15.
- Seven Day Rule
- Alternative Premium Funding Target Elections
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.