OMB Outlines PBGC Regulatory Agenda

The Office of Management and Budget (OMB) has issued a comprehensive list of regulatory projects the Pension Benefit Guaranty Corporation (PBGC) is undertaking.

Proposed Regulations

• Missing participants: A proposed rule to implement Section 410 of the Pension Protection Act of 2006, which allows certain terminating plans not covered by the existing missing participants program to participate in that program. Once final regulations are issued, the program will cover multiemployer plans, small professional service employer plans (25 or fewer active participants), and individual account plans.

• Mergers and transfers between multiemployer plans: A proposed regulation that will prescribe rules for facilitated mergers of multiemployer plans under the Multiemployer Pension Reform Act of 2014, and conform the existing regulation to changes in the law.

• Valuation assumptions and methods: A rule that would amend PBGC benefit valuation and asset allocation regulations by improving its valuation assumptions and methods. Chief among the modifications the PBGC is considering are modifications to mortality rates and the format of its interest factors.

• Benefit payments: This proposed rule would make clarifications and codify policies in PBGC's benefit payments and valuation regulations.

• Multiemployer plan partitions: This final rule will prescribe rules for multiemployer plan partitions under the Multiemployer Pension Reform Act of 2014.

• Benefit determinations and plan valuations for statutory hybrid plans: A final rule that will amend the PBGC’s regulations to prescribe rules on valuing and paying benefits in terminating cash balance and other statutory hybrid plans. The amendments will also prescribe rules on how PBGC determines benefits payable in terminating cash balance and other statutory hybrid plans that it trustees. The amendments will take into account provisions of the Pension Protection Act of 2006 and implementing Treasury regulations.

• Annual financial and actuarial information reporting: A rule that would amend the PBGC’s regulation on Annual Financial and Actuarial Information Reporting to codify provisions of the Moving Ahead in the 21st Century Act and the Highway Transportation Funding Act of 2014 and related PBGC guidance, revise waivers from reporting and make technical changes.