Lump-sum payments offered to defined-benefit plan participants and annuity purchases that sponsors make to offload pension liabilities to insurance companies will now have to be documented in annual Form 5500 filings.
Under the new rules, sought by the Pension Benefits Guaranty Corp., sponsors will be required to document de-risking activity from both the current and previous premium years.
The transactions warrant PBGC attention because they lower the participant count in plans, thereby reducing premiums sponsors pay, according to a statement that the PBGC submitted to the Office of Management and Budget rationalizing the new requirements.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
