<DOC>

[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



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