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ERISA Section 4062(e)


Section 4062(e) is a provision of ERISA intended to help protect pensions in situations where a company ceases operations and workers lose their jobs. On December 16, 2014, President Obama signed into law H.R. 83, which made major changes to Section 4062(e).

A 4062(e) event occurs when:

  • There is a permanent cessation of operations at a facility; and
  • That cessation results in a workforce reduction of more than a 15% reduction in the total number of eligible employees; where
  • Eligible employees are employees eligible to participate in any employee pension plan (i.e. any defined benefit plan or defined contribution plan) maintained by members of the controlled group.

If a 4062(e) event has occurred, reporting to PBGC is required. See Forms and Instructions. 

Pension plans falling into either of the following categories are exempt from 4062(e):

  • Pension plans that had fewer than 100 participants with accrued benefits as of the plan valuation date; or 
  • Pension plans that were at least 90% funded in the plan year before the cessation occurred. The funded level for this exemption is measured by comparing the plan’s assets to the plan’s unfunded vested benefits, as determined for purposes of paying PBGC premiums.

If a plan falls under one of these exemptions, then no reporting is required. If a 4062(e) event has occurred, companies are required to satisfy the resulting liability. See Frequently Asked Questions About ERISA 4062(e) for more information about how to satisfy the liability.

Forms and Instructions

If an event under Section 4062(e) has occurred, notice is required to be provided to PBGC and is in addition to any Reportable Event notice that may be required under Section 4043 (see the Active Participant Reduction event on the Reportable Events and Large Unpaid Contributions page). The forms listed below are for use following a Section 4062(e) event. Instructions for all 4062(e) forms are available in the 4062(e) Form Series Instructions.

Form Used to notify PBGC of… 
  • a 4062(e) event 
  • an employer’s election to make additional annual contributions for seven years to a plan to fulfill its liability arising from the 4062(e) event
  • payment of an additional annual contribution to a plan
  • termination of the obligation for additional annual contributions to a plan
  • a funding waiver from the IRS
  • failure to pay an additional annual contribution 

The initial notice, Form 4062(e)-01, must be filed within 60 days of the cessation. Additional filing information is available in the 4062(e) Form Series Instructions.

Filing Assistance

For assistance, contact PBGC by sending an email to

Practitioners may also call our toll-free practitioner number at 1-800-736-2444 (ext. 4070) or 202-229-4070 (DC area). TTY/ASCII users may call 711.

Penalties and Enforcement

PBGC’s current penalty policy applies to failure to timely file information required by Section 4062(e). See also Section 4071 and 29 CFR Part 4071.

Frequently Asked Questions About ERISA 4062(e)

PBGC has prepared Frequently Asked Questions to assist practitioners in understanding recent changes to Section 4062(e). For more information see Frequently Asked Questions About ERISA 4062(e)

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