No action will be taken against creditworthy companies
or small pension plans; no financial guarantees will be required
for approximately 92% of applicable employer-plan
sponsors.
On November 2, the Pension Benefit Guaranty Corporation (PBGC)
announced that, going forward, it will generally take no action to
enforce Section 4062(e) of ERISA against "creditworthy"
companies or small pension plans with 100 participants or
less.1 Instead, PBGC will concentrate its Section
4062(e) enforcement efforts on those companies where the risk of
defaulting on their pension plan obligations still remains
substantial. Companies that are "financially sound" by
existing measures will not be required to provide financial
assurance of any kind. As a result, PBGC expects that 92% of
companies that sponsor defined benefit pension plans will not face
enforcement. PBGC previously enforced all Section 4062(e) cases
without regard to the size of the plan or the financial health of
the
