View Official PBGC Instructions
The PBGC needs this information, which is required to be filed under ERISA § 4043 and 29 CFR Part 4043, Subparts A and B, so that it can take action to protect participants and the termination insurance program in appropriate cases. PBGC estimates that it will take an average of 4.1 hours and $1,128 to comply with these requirements. If you have any comments concerning the accuracy of this estimate or suggestions for improving this form, please send your comments to the Pension Benefit Guaranty Corporation, Legislative and Regulatory Department, 1200 K Street, N.W., Washington, D.C. 20005-4026. This collection of information has been approved by the Office of Management and Budget (OMB) under control number 1212-0013. Under the Paperwork Reduction Act, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.
Section 4043 of the Employee Retirement Income Security Act (ERISA) requires that plan administrators and contributing sponsors notify PBGC of the occurrence of certain events ("reportable events"). These are:
PBGC's regulation on Reportable Events (29 CFR Part 4043, Subparts A and B) describes in detail each reportable event, the contents of the required post-event notice and any applicable reporting waivers or extensions of deadlines. Part III of these instructions summarizes these rules for each event.
The rules in the Reportable Events regulation apply only to reportable events involving single-employer plans covered by title IV of ERISA. In these instructions, "plan" always means such a single-employer plan.
* Note: The Form 10 package may be used for post event reporting for plans of any size. PBGC Form 10-SP (for plans with fewer than 500 participants) is no longer available.
Advance Reporting Rule for Non-Public Companies Return to Top
ERISA also requires that certain contributing sponsors notify PBGC at least 30 days in advance of the effective date of certain reportable events. If an advance notice is filed, no additional notice is required.
The advance notice requirement applies only to non-public companies that (1) are members of a controlled group whose plans have aggregate unfunded vested benefits of more than $50 million and an aggregate funded vested benefit percentage of less than 90 percent; and (2) are reporting about events relating to themselves or other non-public companies in the controlled group.
Form 10 and the rules described in these instructions do not apply to advance reporting. See the Form 10-Advance package and 29 CFR Part 4043, Subparts A and C, for further information about advance reporting.
Who Must Notify PBGC Return to Top
The plan administrator and each contributing sponsor of a plan for which a reportable event has occurred must file a post-event reportable event notice with PBGC. If there is a change in plan administrator or contributing sponsor, the reporting obligation applies to the plan administrator or contributing sponsor(s) on the date the post-event notice is due.
* Note: An authorized representative may file a reportable event notice on behalf of a plan administrator, a contributing sponsor or both.
A single event (such as a controlled group break-up) may be a reportable event for more than one plan in the controlled group. In that case, the reporting requirement applies to the plan administrator and each contributing sponsor of each plan. Any filing will be deemed to be a filing by all persons required to notify PBGC.
Reporting Waivers Return to Top
PBGC has waived post-event reporting for certain reportable events in certain circumstances (see Part III of these instructions). Several of these waivers are based on measures of the plan's unfunded vested benefits. Part IV describes general rules for computing plan assets and vested benefits in order to determine whether any of the funding based waivers apply.
Post-event reporting is waived for any occurrence that is reportable under more than one reportable event only if the requirements for a waiver for each reportable event are met.
A reportable event notice may be filed with PBGC by mail, commercial delivery service, hand delivery or electronic transmission (e.g., e-mail or fax).
A reportable event notice must be filed within 30 days after a plan administrator or contributing sponsor knows or has reason to know that a reportable event has occurred.
PBGC has extended this deadline for some events in certain specified circumstances (see Part III of these instructions).
The filing deadline for any event that is reportable under more than one reportable event will be the earliest deadline for reporting any one of the events.
In computing any period of time, the day of the event from which the period of time begins to run is not included. The last day of the period is included, unless it is a weekend or Federal holiday, in which case the period runs until the end of the next regular business day.
The filing date for a reportable event notice or other required information is -
Information received on a weekend or Federal holiday or after 5:00 p.m. on a weekday is considered filed on the next regular business day.
Special rule for electronic transmission: An electronic transmission of a reportable event notice will be deemed timely filed if (1) the transmission is received by PBGC on or before the filing deadline (including extensions), (2) the transmission contains at least the information listed on the front of the Form 10 and (3) the remaining information is received by PBGC at the address listed under "Where to File" by the second regular business day following the filing deadline (including extensions).
By mail, commercial delivery service or hand delivery:
By electronic mail (e-mail):
By facsimile transmission (fax):
A plan administrator or contributing sponsor must include with the PBGC Form 10 certain specified information tailored to the particular event. This information is listed on the back of the Form 10.
If any required information has previously been submitted to PBGC, the filer may instead refer to the previous submission.
If the same event is reportable under more than one reportable event, the notice must include all the required information for each event.
If notices are required for two or more events, the notices may be combined in one filing.
PBGC may require that a plan administrator or contributing sponsor submit additional information within 30 days after the date of PBGC's written request. PBGC may shorten this 30-day period where it determines that the interests of PBGC or participants may be prejudiced by a delay in receipt of the information.
* Note: Any non-public information submitted to PBGC as part of a reportable event notice shall not be made public, except as may be relevant to any administrative or judicial action or proceeding or for disclosure to either body of Congress.
Information on Controlled Group Structure
To comply with any requirement that the reportable event notice include a description of the plan's controlled group structure (see the reverse side of the Form 10), the filer may submit a copy of an organization chart or other diagram. The description or chart may exclude de minimis 5 percent segments and foreign entities other than foreign parents.
Special Rule for Terminating Plans Return to Top
A reportable event notice is required for a plan in the process of terminating. This notice is waived if the deadline for filing the notice is on or after the date on which (1) all of the plan's assets (other than any excess assets) are distributed pursuant to a termination or (2) a trustee is appointed for the plan under ERISA § 4042(c).
Effect of Failure to File Return to Top
If a notice (or any other required information) is not provided within the specified time limit, PBGC may assess against each plan administrator and contributing sponsor required to provide the notice a separate penalty under ERISA § 4071 of up to $1,100 a day for each day for which the notice or other information is overdue (see 29 CFR Part 4071 and PBGC's Statement of Policy on Assessment of Penalties for Failure to Provide Required Information (60 FR 36837, July 18, 1995)). PBGC may pursue any other equitable or legal remedies available to it under the law.
For Questions, Problems, Copies of Forms Return to Top
If you have questions or problems regarding reportable events or you need copies of this package, the Form 10 Advance package or the Form 200 package, contact:
Pension Benefit Guaranty Corporation
For TTY/TTD users, call the Federal Relay Service toll free
Code means the Internal Revenue Code of 1986, as amended.
Contributing sponsor means a person who is a contributing sponsor as defined in ERISA § 4001(a)(13).
Controlled group means, in connection with any person, a group consisting of that person and all other persons under common control with that person (generally 80% ownership; see 29 CFR Part 4001.3). Any reference to a plan's controlled group means all contributing sponsors of the plan and all members of each contributing sponsor's controlled group.
De minimis 10-percent segment means, in connection with a plan's controlled group, one or more entities that in the aggregate have for a fiscal year:
De minimis 5-percent segment has the same meaning as a de minimis 10-percent segment, except that "5%" is substituted for "10%" each time it appears.
EIN/PN means the nine-digit employer identification number assigned by the Internal Revenue Service to a person and the three-digit plan number assigned to a plan.
Event year means the plan year in which the reportable event occurs.
Foreign entity means a member of a controlled group that:
Foreign-linked entity means a person that:
Foreign parent means a foreign entity that is a direct or indirect parent of a person that is a contributing sponsor.
Notice date means the deadline (including extensions) for filing notice of the reportable event with PBGC.
Person means an individual, partnership, joint venture, corporation, mutual company, joint-stock company, trust, estate, unincorporated organization, association, or employee organization.
Public company means a person subject to the reporting requirements of § 13 or § 15(d) of the Securities Exchange Act of 1934 or a subsidiary (as defined for purposes of the Securities Exchange Act of 1934) of a person subject to such reporting requirements.
Single-employer plan means any defined benefit plan (as defined in ERISA § 3(35)) that is not a multiemployer plan (as defined in ERISA § 4001(a)(3)) and that is covered by title IV of ERISA.
Variable rate premium means the portion of the single-employer premium based on a plan's unfunded vested benefits (see ERISA § 4006(a)(3)(E) and 29 CFR § 4006.3(b)).
Pension Benefit Guaranty Corporation
Department of Insurance Supervision and Compliance
1200 K Street, N.W.
Washington, D.C. 20005-4026
post-event.report@pbgc.gov
(202) 842-2643 (call (202) 326-4070 to confirm that the fax
has been received). (For TTY/TTD users, call the Federal
Relay Service toll-free at 1-800-877-8339 and ask to be
connected to the number above.)
Department of Insurance Supervision and Compliance
1200 K Street, N.W.
Washington, D.C. 20005-4026
Telephone: (202) 326-4000
at 1-800-877-8339 and ask to be connected to the number above.
PART II - DEFINITIONS Return to Top
PART III - SPECIFIC INSTRUCTIONS Return to Top
(see 29 CFR § 4043.23)
Definition of Event A reportable event occurs when the number of active participants under a plan is reduced to less than:
For purposes of this reportable event:
The filer may substitute the number of active participants at the end of the previous plan year for the number of active participants at the beginning of the current plan year.
An active participant is a participant who (1) is receiving compensation for work performed; (2) is on paid or unpaid leave granted for a reason other than a layoff; (3) is laid off from work for a period of time that has lasted less than 30 days; or (4) is absent from work due to a recurring reduction in employment that occurs at least annually.
Reporting Waivers - Reporting of this event is waived if:
Small plan: The plan has fewer than 100 participants at the beginning of either the current or the previous plan year; or
Funding-based waivers: For the event year:
- No variable rate premium (see Part IV.B);
- Less than $1 million in unfunded vested benefits (see Part IV.C);
- No unfunded vested benefits (see Part IV.D); or
- No facility closing event/80% funded: The plan is at least 80% funded for vested benefits (see Part IV.E) and the active participant reduction would not be reportable if only those participant reductions resulting from cessation of operations at one or more facilities were taken into account.
Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to the latest of:
PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event year, provided the plan would have satisfied any of the funding-based waivers for this event had the funding determination been made for the plan year preceding the event year rather than the event year;
Form 5500 extension: 30 days after the plan's Form 5500 due date that next follows the date the reportable event occurs, provided the event would not be reportable counting only those participant reductions resulting from cessation of operations at a single facility; and
PBGC Form 1-ES extension: The due date for the Form 1-ES for the plan year following the event year if:
(see 29 CFR § 4043.25)
Definition of Event - A reportable event occurs when a payment required under ERISA § 302 or Code § 412 is not made by the due date for the payment. Required payments include required quarterly contributions under ERISA § 302(e) or Code § 412(m) and payments required as a condition for a funding waiver under ERISA § 303 or Code § 412(d).
* Note: In the case of a payment needed to avoid a deficiency in the plan's funding standard account, the due date is the latest date such payment may be made under ERISA § 302(c)(10)(A) or Code § 412(c)(10)(A).
Reporting Waivers - Reporting of this event is waived if:
Payment by 30th day: The required minimum funding payment is made by the 30th day after the payment is due; or
Small plan waiver: There are 500 or fewer participants in the employer's defined benefit plans on each day of the plan year preceding the plan year for which the contribution is owed; except that the 500 participant limit is reduced to 100 if a Participant Notice is required for the plan under § 4011 of ERISA for both the plan year for which the contribution is owed and the prior plan year. The number of participants must be determined in a manner consistent with § 302(d)(6) of ERISA. For more information, see PBGC Technical Update 97-6 (which is on the PBGC's web site at http://www.pbgc.gov/practitioners/law-regulationsinformal-guidance/content/index.html)
* Note: If a contributing sponsor or controlled group member files a complete Form 200 with PBGC within 10 days of the due date of the payment in accordance with 29 CFR § 4043.81, the Form 200 filing shall satisfy the notice requirement for this event. A reportable event notice under this section is not a substitute for the Form 200.
(see 29 CFR § 4043.26)
Definition of Event - A reportable event occurs when a plan is currently unable, or projected to be unable, to pay benefits.
A plan is currently unable to pay benefits if the plan fails to provide any participant or beneficiary the full benefits to which the person is entitled under the terms of the plan, at the time the benefit is due and in the form in which it is due.
* Note: This does not include a failure or inability to pay benefits caused solely by the need to verify the person's eligibility for benefits; the inability to locate the person; or any other administrative delay, if the delay is for less than the shorter of two months or two full benefit payment periods.
A plan is projected to be unable to pay benefits when, as of the last day of any quarter of a plan year, the plan's liquid assets are less than two times the amount of the disbursements from the plan for such quarter. Liquid assets and disbursements from the plan are defined in ERISA § 302(e)(5)(E) and Code § 412(m)(5)(E).
Reporting Waivers Reporting of this event is waived unless the reportable event occurs during a plan year for which the plan is described in ERISA § 302(d)(6)(A) or Code § 412(l)(6)(A).
* Note: Reporting is waived for a plan year for a plan that has more than 100 participants on each day of the preceding plan year. (Reporting may be waived for a plan with 100 or fewer participants based on the aggregation rule described in ERISA § 302(d)(6)(C) or Code § 412(l)(6)(C).)
(see 29 CFR § 4043.27)
A substantial owner (see ERISA § 4022(b)(5)(A)) is an individual who owns (or owned within the preceding 60 months):
Definition of Event - A reportable event occurs for a plan when:
The value of a distribution to a substantial owner is the sum of:
Reporting Waivers - Reporting of this event is waived if:
Distribution up to § 415 limit: The total of all distributions to the substantial owner within the one-year period ending with the date of the distribution does not exceed the limitation (as of the date the reportable event occurs) under Code § 415(b)(1)(A) (as adjusted in accordance with Code § 415(d)). For this purpose, the § 415 limit is expressed as an annual benefit in the form of a straight life annuity to a participant at ages 62 through 65. (For example, for calendar year 2006, the limit was $175,000.);
Funding-based waivers: For the event year:
- No variable rate premium (see Part IV.B);
- No unfunded vested benefits (see Part IV.D); or
- 80% funded for vested benefits (see Part IV.E); or
Distribution up to 1% of assets: The sum of the values of all distributions to the substantial owner within the one-year period ending with the date of the distribution is 1% or less of the end-of-year current value of the plan's assets (as required to be reported on the plan's Form 5500) for either of the two plan years immediately preceding the event year.
Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to:
PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event year, provided the plan would have satisfied any of the funding-based waivers for this event had the funding determination been made for the plan year preceding the event year rather than the event year.
(see 29 CFR § 4043.32)
Special Filing Rule - For this event, only the plan administrator and contributing sponsor of the transferor plan are required to file a reportable event notice. Notice by any other plan administrator or contributing sponsor is waived.
Definition of Event - A reportable event occurs for a plan when:
The date of a transfer of benefit liabilities shall be determined on the basis of the facts and circumstances of the particular situation. For transfers subject to Code § 414(l), the date determined in accordance with Code § 414(l) and 26 CFR § 1.414(l)-1(b)(11) will be considered the date of transfer.
Reporting Waivers - Reporting is waived if:
Complete plan transfer: All of the transferor plan's benefit liabilities and assets are transferred to one other plan. (Note: This event may be reportable if it involves a change in contributing sponsor or controlled group (see Part III.F));
De minimis transfer: The value of assets being transferred:
§ 414(l) safe harbor: The transfer complies with Code § 414(l) using the actuarial assumptions prescribed for valuing benefits in terminated PBGC-trusteed plans under 29 CFR § 4044.51-57; or
Fully-funded plans: The transfer complies with Code § 414(l) and, after the transfer, the transferor and transferee plans are fully funded (using the actuarial assumptions prescribed for valuing benefits in terminated PBGC-trusteed plans under 29 CFR § 4044.51-57).
(see 29 CFR § 4043.29)
Definition of Event - A reportable event occurs for a plan when there is a transaction that results, or will result, in one or more persons ceasing to be members of the plan's controlled group.
For this purpose, a transaction includes, but is not limited to, a legally binding agreement, whether or not written, to transfer ownership, an actual transfer of ownership, and an actual change in ownership that occurs as a matter of law or through the exercise or lapse of pre-existing rights.
* Note: This event does not include a transaction that will result solely in a reorganization involving a mere change in identity, form, or place of organization, however effected.
Examples - The following examples assume no waivers apply.
Controlled Group Breakup
Facts: Plan A's controlled group consists of Company A (its contributing sponsor), Company B (which maintains Plan B), and Company C. As a result of a transaction, the controlled group will break into two separate controlled groups -- one segment consisting of Company A and the other segment consisting of Companies B and C.
Reporting: Both Company A (Plan A's contributing sponsor) and the plan administrator of Plan A are required to report that Companies B and C will leave Plan A's controlled group. Company B (Plan B's contributing sponsor) and the plan administrator of Plan B are required to report that Company A will leave Plan B's controlled group. Company C is not required to report because it is not a contributing sponsor or a plan administrator.
Change in Contributing Sponsor
Facts: Plan Q is maintained by Company Q. Company Q enters into a binding contract to sell a portion of its assets and to transfer employees participating in Plan Q, along with Plan Q, to Company R, which is not a member of Company Q's controlled group. There will be no change in the structure of Company Q's controlled group. On the effective date of the sale, Company R will become the contributing sponsor of Plan Q.
Reporting: A reportable event occurs on the date of the transaction (i.e., the binding contract) because, as a result of the transaction, Company Q (and any other member of its controlled group) will cease to be a member of Plan Q's controlled group. If, on the 30th day after Company Q and Company R enter into the binding contract, the change in the contributing sponsor has not yet become effective, Company Q has the reporting obligation. If the change in the contributing sponsor has become effective by the 30th day, Company R has the reporting obligation.
Merger/Consolidation Within Controlled Group
Facts: Company X and Company Y are subsidiaries of Company Z, which maintains Plan Z. Company Y merges into Company X (only Company X survives).
Reporting: Company Z and the plan administrator of Plan Z must report that Company Y has ceased to be a member of Plan Z's controlled group.
Reporting Waivers - Reporting of this event is waived if:
De minimis 10-percent segment: The person or persons that will cease to be members of the plan's controlled group represent a de minimis 10-percent segment of the plan's old controlled group for the most recent fiscal year(s) ending on or before the date the reportable event occurs;
Foreign entity: Each person that will cease to be a member of the plan's controlled group is a foreign entity other than a foreign parent; or
Funding-based waivers: For the event year:
- No variable rate premium (see Part IV.B);
- Less than $1 million in unfunded vested benefits (see Part IV.C);
- No unfunded vested benefits (see Part IV.D); or
- Public company/80% funded: The plan's contributing sponsor before the effective date of the transaction is a public company and the plan is at least 80% funded for vested benefits (see Part IV.E).
Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to the latest of:
PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event year, provided the plan would have satisfied any of the funding-based waivers for this event had the funding determination been made for the plan year preceding the event year rather than the event year;
Foreign parent and foreign-linked entities: If the only persons ceasing to be members of the plan's controlled group are foreign parents or foreign-linked entities, 30 days after the plan's first Form 5500 due date after the person required to notify PBGC has actual knowledge of the transaction and of the controlled group relationship; and
Press releases; Forms 10Q: If the plan's contributing sponsor before the effective date of the transaction is a public company, 30 days after the earlier of (1) the first Form 10Q filing deadline that occurs after the transaction, or (2) the date (if any) when a press release with respect to the transaction is issued.
(see 29 CFR § 4043.30)
Definition of Event - A reportable event occurs for a plan when a member of the plan's controlled group:
* Note: An event described above may also be reportable under Bankruptcy or Similar Settlements (see Part III.K).
Reporting Waivers - Reporting of this event is waived if:
De minimis 10-percent segment: The person or persons that liquidate represent a de minimis 10-percent segment of the plan's controlled group for the most recent fiscal year(s) ending on or before the date the reportable event occurs and each plan that was maintained by the liquidating member is maintained by another member of the plan's controlled group after the liquidation;
Foreign entity: Each person that liquidates is a foreign entity other than a foreign parent; or
Funding-based waivers: Each plan that was maintained by the liquidating member is maintained by another member of the plan's controlled group and, for the event year:
- No variable rate premium (see Part IV.B),
- Less than $1 million in unfunded vested benefits (see Part IV.C), or
- No unfunded vested benefits (see Part IV.D); or
- Public company/80% funded: The plan's contributing sponsor is a public company; the plan is at least 80% funded for vested benefits (see Part IV.E); and each plan that was maintained by the liquidating member is maintained by another member of the plan's controlled group after the liquidation.
Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to the latest of:
PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event year, provided the plan would have satisfied any of the funding-based waivers for this event had the funding determination been made for the plan year preceding the event year rather than the event year;
Foreign parent and foreign-linked entities: If the person liquidating is a foreign parent or foreign-linked entity, 30 days after the plan's first Form 5500 due date after the person required to notify PBGC has actual knowledge of the transaction and of the controlled group relationship; and
Press releases; Forms 10Q: If the plan's contributing sponsor is a public company, 30 days after the earlier of (1) the first Form 10Q filing deadline that occurs after the transaction, or (2) the date (if any) when a press release with respect to the transaction is issued.
(see 29 CFR § 4043.31)
ERISA Definition - The reportable event described below replaces the reportable event on extraordinary dividends and stock redemptions described in ERISA § 4043(c)(11). Thus, reporting of any event described under ERISA § 4043(c)(11) is waived, unless the event would be reportable under this or another reportable event.
Definition of Event - A reportable event occurs for a plan when any member of the plan?s controlled group declares a dividend (definition follows) or redeems its own stock, if the resulting distribution is a reportable cash distribution, non-cash distribution or combined distribution as described below.
Definitions
Adjusted net income means the net income before after-tax gain or loss on any sale of assets, as determined in accordance with generally accepted accounting principles and practices.
Cash distribution percentage means, for a fiscal year, the lesser of:
Dividend means a distribution to one or more shareholders. A payment by a person to a member of its controlled group is treated as a distribution to its shareholder(s).
Net value of non-cash distribution means the fair market value of assets transferred by the person making the distribution, reduced by the fair market value of any liabilities assumed or consideration given by the recipient in connection with the distribution. A distribution of stock that one controlled group member holds in another controlled group member is disregarded. Net value determinations should be based on readily available fair market value(s) or independent appraisal(s) performed within one year before the distribution is made. To the extent that fair market values are not readily available and no such appraisals exist, the fair market value of an asset transferred in connection with a distribution or a liability assumed by a recipient of a distribution shall be deemed to be equal to 200% of the book value of the asset or liability on the books of the person making the distribution. Stock redeemed is deemed to have no value.
Non-cash distribution percentage means the percentage that the net value of the non-cash distribution bears to one-tenth of the value of the total net assets of the person making the distribution.
Total net assets means, with respect to the person declaring a non-cash distribution:
Reporting Waivers - Reporting is waived if:
De minimis 5-percent segment: The person making the distribution is a de minimis 5-percent segment of the plan's controlled group for the most recent fiscal year(s) ending on or before the date the reportable event occurs;
Foreign entity: The person making the distribution is a foreign entity other than a foreign parent;
Foreign parent: The person making the distribution is a foreign parent and the distribution is made solely to other members of the plan's controlled group; or
Funding-based waivers: For the event year:
- No variable rate premium (see Part IV.B);
- Less than $1 million in unfunded vested benefits (see Part IV.C);
- No unfunded vested benefits (see Part IV.D); or
- 80% funded for vested benefits (see Part IV.E).
Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to the latest of:
PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event year, provided the plan would have satisfied any of the funding-based waivers for this event had the funding determination been made for the plan year preceding the event year rather than the event year;
Foreign parent and foreign-linked entities: If the person making the distribution is a foreign parent or foreign-linked entity, 30 days after the plan?s first Form 5500 due date after the person required to notify PBGC has actual knowledge of the distribution and of the controlled group relationship; and
Press releases; Forms 10Q: If the plan's contributing sponsor is a public company, 30 days after the earlier of (1) the first Form 10Q filing deadline that occurs after the distribution, or (2) the date (if any) when a press release with respect to the distribution is issued.
(see 29 CFR § 4043.33)
Definition of Event - A reportable event occurs when an application for a minimum funding waiver is submitted for a plan under ERISA § 303 or Code § 412(d).
(see 29 CFR § 4043.34)
Definition of Event - A reportable event occurs whenever there is a default by a member of a plan's controlled group with respect to a loan with an outstanding balance of $10 million or more if:
Special Notice Date Rule - For this event, the notice date is 30 days after the person required to report knows or has reason to know of the occurrence of the default, without regard to the time of any other conditions required for the default to be reportable.
Example - Company A has a debt with an outstanding balance of $20 million, for which a payment is due on October 1. Under the terms of the loan, the default may be cured within 10 days. Company A does not make the payment until October 31. Because Company A has made the payment within thirty days of the due date, no reportable event has occurred. If Company A does not make the payment by October 31, a reportable event will have occurred on October 1, and notice will be due by October 31.
Reporting Waivers - Reporting of this event is waived if:
Default cured: The default is cured, or waived by the lender, within 30 days or, if later, by the end of any cure period provided by the loan agreement;
Foreign entity: The debtor is a foreign entity other than a foreign parent; or
Funding-based waivers: For the event year:
- No variable rate premium (see Part IV.B);
- Less than $1 million in unfunded vested benefits (see Part IV.C);
- No unfunded vested benefits (see Part IV.D); or
- 80% funded for vested benefits (see Part IV.E).
Extension of Reporting Deadline - The notice date (for an event that is not waived) is extended to the latest of:
Cure period extensions: One day after:
PBGC Form 1 extension: 30 days after the plan's variable rate premium filing due date for the event year, provided the plan would have satisfied any of the funding-based waivers for this event had the funding determination been made for the plan year preceding the event year rather than the event year; and
Foreign parent and foreign-linked entities: With respect to a loan default involving only a foreign parent or a foreign-linked entity, 30 days after the plan's first Form 5500 due date after the person required to notify PBGC has actual knowledge of the default and of the controlled group relationship.
(see 29 CFR § 4043.35)
Definition of Event - A reportable event occurs with respect to a plan when any member of the plan's controlled group:
* Note: An event described above may also be reportable under Liquidation (see Part III.G).
Reporting Waivers - Reporting of this event is waived if the controlled group member described above is a foreign entity other than a foreign parent.
Extension of Reporting Deadline - If the controlled group member described above is not a contributing sponsor, the notice date is extended until 30 days after a person required to notify PBGC has actual knowledge of the reportable event.
Certain waivers and filing extensions depend on the plan's funding level. For waivers, plan funding is determined as of the same date used in calculating the plan's unfunded vested benefits when determining the plan's variable rate premium obligation for the event year (see PBGC's regulation on Payment of Premiums (29 CFR Part 4006)). That date is the last day of the prior plan year, subject to exceptions for new and newly-covered plans and plans involved in certain mergers or spinoffs (see the definition of "testing date" in 29 CFR § 4006.2). For extensions, plan funding is generally determined as of the last day of the second preceding plan year.
Sections B through E below describe each of the funding based waivers, including the required assumptions for valuing assets and vested benefits. Section F below describes funding-based extensions.
This waiver applies to a plan that is not required to pay a variable rate premium for the event year in accordance with 29 CFR § § 4006.4 and 4006.5. A plan may qualify for this waiver because it is exempt from the variable rate premium under § 4006.5 or because it has no unfunded vested benefits (using either the general rule or the alternative calculation method) under § 4006.4(b).
* Note: The "Required Interest Rate" under section 4006(a)(3)(E)(iii)(II) of ERISA, which is used for calculating variable rate premiums, is the "applicable percentage" (currently 85 percent) of the annual yield on 30 year Treasury securities for the calendar month preceding the calendar month in which the plan year begins. (The "applicable percentage" becomes 100 percent beginning with the first plan year to which the first new mortality tables issued under Code § 412(l)(7)(C)(ii)(II) apply.).
The Pension Funding Equity Act of 2004 ("PFEA") temporarily changed the Required Interest Rate for a plan year beginning in 2004 or 2005 by substituting, for the annual yield on 30 year Treasury securities, the annual rate of interest determined by the Secretary of the Treasury on amounts invested conservatively in long term investment grade corporate bonds. PFEA does not apply for plan years beginning in 2006. We will make updated information about the Required Interest Rate available as we get it: check our web site (http://www.pbgc.gov) or call or write us (at the address and phone numbers on page 4) for more information.
On or about the 15th of each month, the PBGC publishes in the Federal Register a list of the Required Interest Rates for the preceding 12 months. In addition, for your convenience, the Required Interest Rate is posted on the PBGC's Web site. The Required Interest Rate also can be obtained by calling (202) 326- 4041
This waiver applies to a plan that has less than $1 million in underfunding. Underfunding can be measured in either of two ways:
This waiver applies if the plan would have no unfunded vested benefits if determined in the following manner:
* Note: For this purpose, unfunded vested benefits are determined in accordance with the optional assumptions under 29 CFR § 4010.4(b)(2) as in effect before April 8, 2005. Although that paragraph was removed from the regulations (see 70 FR 11540, March 9, 2005), filers may continue to use the optional assumptions (described above) to determine if the plan meets a reporting waiver under 29 CFR Part 4043 based on having no unfunded vested benefits.
This waiver applies if the plan's vested benefits amount is at least 80% of the fair market value of the plan's assets (see 29 CFR § 4043.2), i.e., use the general rule of 29 CFR § 4006.4(a), but substitute the fair market value of the plan's assets for the actuarial value of the plan's assets).
Certain extensions of the filing deadline for certain reportable events also depend on the plan's funding level. Plan funding is determined for each of the applicable funding-based waivers as described above, except that the determination is made as of the testing date for the plan year before the event year (i.e., generally, as of the last day of the second preceding plan year).
Example - The PBGC premium for a calendar year plan for 2007 is due October 15, 2007. The VRP portion of the premium is generally based on underfunding as of the last day of the prior plan year (i.e., as of December 31, 2006).
Assume a reportable event occurs for a calendar year plan on May 1, 2007. The reportable event notice is due May 31, 2007, unless a waiver or extension applies. The information needed to determine underfunding as of December 31, 2006, may not be available by the notice due date, since the plan has not yet determined its underfunding for premium purposes. To determine whether an extension applies, the plan could determine underfunding using information as of December 31, 2005.