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Compliance July 29, 2011
PBGC Removes Regulation on Disclosure to Participants
July 29, 2011 (PLANSPONSOR.com) – The Pension Benefit Guaranty Corporation has issued a final rule removing its regulation on Disclosure to Participants.
Reported by Rebecca Moore
According to the announcement in the Federal Register, Section 4011 of the Employee Retirement Income Security Act (ERISA) requires certain underfunded plans to give an annual notice to participants of plan funding status and the limits on PBGC’s guarantee. PBGC’s implementing regulations are at 29 CFR part 4011.
However, Section 501 of the Pension Protection Act of 2006, Public Law 109–280 (2006), repealed section 4011 of ERISA for plan years beginning after 2006 and replaced the disclosure requirement under that section with a disclosure requirement under Title I of ERISA (under the jurisdiction of the Department of Labor). On January 22, 2007 (at 72 FR 2615), PBGC amended its regulation part 4011 to reflect that statutory change.
The agency notes that Executive Order 13563 on Improving Regulation and Regulatory Review, among other requirements, directs agencies to periodically review regulations to remove those that are obsolete. The PBGC issued this final rule as a result of that review.