One of the advantageous provisions of the Pension Protection Act (PPA) is that it removed some technical obstacles limiting the ability of certain plan sponsors to make large deductible contributions to their defined benefit (DB) and defined contribution (DC) retirement plans. The issue in question is the overall “25% of compensation” limit which is intended […]Read More… from Paying for PBGC coverage
One confusing aspect of pension plan terminations is when the plan sponsor’s reporting obligation for the plan ends. Often there is the perception that a short plan year occurs during the year of plan termination, even if benefits are not distributed at that time. This post will clarify a few items with regard to short […]Read More… from Plan Termination Year vs. Short Plan Year
We’ve been following the recent saga where the PBGC is not allowing some employers to correct their 2009 PBGC filings for apparently innocent mistakes. Now some congressional heavyweights are adding their voice to the mix. Under the new post-PPA PBGC filing rules, an employer may make an election to use either the “Standard Method” or […]Read More… from PBGC “Alternative Method” Premium Election Problems
Historically, the IRS has required that plan documents for terminating retirement plans be amended to reflect all legal requirements enacted up through the plan termination date. However, there was some uncertainty as to whether the “new” 5- and 6- year plan restatement rules actually required plan sponsors to: Entirely restate the plan document upon plan […]Read More… from Plan document restatements for terminating plans
During the recent economic recession, many pension plan sponsors have either been forced to shut facilities/plants or have experienced rounds of layoffs which reduced the number of active participants in the pension plan. As many pension plan sponsors know, a significant drop in the number of active participants can trigger a PBGC “reportable event.” This […]Read More… from Surprise, You’ve Got a PBGC Reportable Event
