ERIC Submits Additional Information on Reportable Events Hearing to PBGC

The ERISA Industry Committee (ERIC) has submitted a letter to the Pension Benefit Guaranty Corporation (PBGC) in response to questions posed by the PBGC at the recent hearing on the reportable events proposed regulations. 

This letter supplements ERIC's prior comment letter and testimony on this issue. 

In particular, ERIC's recent letter discussed in further detail that:

• Companies will need to restructure their credit agreements as a result of the proposed regulations;
• Many financially sound companies secure their receivables to reduce financing costs;
• Complying with the proposed regulations would be costly for companies;
• 98% of the largest U.S. defined benefit plans will not qualify for the safe harbor for plans that are 120% funded on a premium basis; and
• The PBGC should not create a new approach whereby it uses a limited number of factors in the company safe harbor.

The letter responding to the PBGC’s questions can be accessed by clicking here. ERIC's June 3rd comment letter is available here and our June 18th testimony is available here.