On April 3, 2013, the Pension Benefit Guaranty Corporation
("PBGC") issued a proposed rule amending its existing
reportable events rule that it expects will exempt more than 90
percent of pension plans and sponsors from many PBGC reporting
requirements, while also simplifying reporting requirements for
those companies and plans that must report.
Generally, ERISA requires pension plans and the companies that
sponsor them to report a range of corporate and plan events to the
PBGC. The PBGC uses the information provided in connection with
these "reportable events" to assess the risk that the
PBGC will have to take over defined benefit pension plans. The
proposed rule is intended to more closely link reporting
requirements with this financial risk, and in doing so, to allow
the PBGC to better focus its resources on companies and plans that
are at substantial risk of default.
