PBGC RULE RILES PENSION SPONSORS

Business groups are unhappy with the Pension Benefit Guaranty Corporation’s (PBGC) final rule on reportable events. “Reportable events” signal financial problems for the pension plan or the company that sponsors it, which could risk the pensions. The new waiver structure in the final rule, “Reportable Events and Certain Other Notification Requirements,” focuses on higher-risk plans and sponsors and should reduce filing requirements for more than 90% of lower-risk plans and sponsors. Business groups are unhappy, however, because some reportable events waivers are based on whether plans and their sponsors will be able to maintain their pension plan, whereas the old regulation only considered plan funding levels.