ERIC Offers Support to PBGC Premium Proposal to Ease Filing Burdens

The ERISA Industry Committee (ERIC), the Washington, D.C.-based trade association representing America’s major employers, in a letter to the Pension Benefit Guaranty Corporation (PBGC) today commended the agency for proposing to ease the premium filing burdens by changing the due date for large pension plans and lowering the self-correction penalty cap for late premium payments.

The PBGC, which is charged with insuring private sector defined benefit pension plans, issued proposed regulations on July 23 that seek to help simplify and reduce regulatory burdens associated with the payment of premiums to the agency.

ERIC’s letter explains that having a uniform due date for premiums would significantly benefit companies and their plans, and as noted by the PBGC, would eliminate the need for the complex penalty safe harbor rules. Moreover, the letter notes that having a uniform due date would reduce the time and money large companies have to spend on the current additional filings for their plans.

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For a copy of ERIC's comment letter, click here.