The Pension Benefit Guaranty Corporation (PBGC) published a final rule amending its benefit payment regulation on Tuesday.
The rule amends PBGC's regulation on benefits payable in terminated single-employer plans, which sets forth rules on PBGC's guarantee of pension plan benefits, including rules on the phase-in of the guarantee.
The amendments implement the provision in the Pension Protection Act of 2006 that the phase-in period for the guarantee of benefits related to an "unpredictable contingent event," such as a plant shutdown, begins no earlier than the date of the event.
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According to PBGC, it has legal authority for this action under section 4002(b)(3) of the Employee Retirement Income Security Act of 1974 (ERISA), which authorizes it to issue regulations to carry out its obligations under Title Iv and section 4022, which set out rules on PBGC's guarantee of benefits in terminate single-employer plans.
It received just one public comment on its 2011 proposed regulation, and made a change to the final regulation in response to that comment.
The final rule will become effective on June 5.
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