ERISA

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ERISA 4010 e-filing requirementsSession
807March 29, 2006

• Ruth Williams and Amy Viener

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Agenda

• Who must file
• Basic rules
• Temporary waiver
• What to file
• How to file
• Overview of the e-4010 application
• Key enhancements
• When to file
• Whats next

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Who must file

• Missed minimum funding by more than 1 million
• Outstanding funding waivers
• Waived amount over 1 million
• Regardless of outstanding balance
• 50 million in unfunded vested benefits
• All underfunded qualified DB plans included (see
  blue book re multiple employer plans)
• Plans that dont pay variable premiums included
• Plans that are exempt under 4010 included

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50 million gateway test

• Determining UVBs
• Assets Actuarial assets
• Liabilities
• Variable premium rules (ACM or general rule)
• Still 83 GAM mortality
• Discount rate for gateway test
• Was 85 of 30-year rate
• PFEA temporarily raised rate to 85 of corp bond
  rate
• PFEA expired, so rate reverted to 85 of 30-yr
  rate
• Special waiver for this year

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Gateway relief - tech update 06-1

• No filing required
• if filing wouldn't be required if PFEA were still
  in effect
• Applies only to info years ending before 6/30/06
• Relief does not apply to VRPs or reportable event
  waiver

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Gateway test discount rates
For information years ending before June 30, 2006
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Where to find rate
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Required information
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Electronic filing requirements

• Must be submitted using PBGCs on-line
  application
• Improvements since last year
• Using prior year's filing as starting point
• Multiple users (simplified approach)
• Amend filing feature (also used for post-
  submission attachments)
• More user-friendly error messages/validation
  checking

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Web-based application

• Wizard-type program walks user through various
  screens
• What screen appears next depends on how prior
  questions are answered
• At any time, user can generate
• A list of errors validate filing
• A summary of the data entered so far view
  filing

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Validate filing
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View filing

• Computer generated summary of information entered
  into application
• Accessible via filing summary page
• Purpose
• To prepare for using application
• To simplify review process
• To create a hard copy record

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Whos in charge?

• The filing coordinator (FC) sets up an e-4010
  account
• An account
• Can be associated with multiple controlled groups
  over multiple years
• Can contain draft filings and copies of submitted
  filings
• A specific filing
• Is associated with only one account, and thus one
  FC is in charge
• Can be reassigned to another FC at any time

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Home page relates to all of a FCs filings
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Filing summaryrelates to a particular filing
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Schedule G
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Schedule FG

• Only required if a filing was required last year
  and not this year
• Can be used to help you figure if a filing is
  required

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Schedule I - members
Exclude exempt entities
Include foreign subs
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Schedule I - members
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Schedule I - plans
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Schedule I - plans
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Assigning an actuary

• First, actuary must set up an e-4010 account
• Next, the FC makes the assignment via Sch I
• The assignment applies to a specified filing for
  a specified year.
• Actuary will then have access only to Schedule P
• FC still has full rights to Schedule P

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Schedule P
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Schedule P
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Reporting benefit liabilities

• Use 4044 assumptions
• Mortality - for plan years ending
• in 2005 (including 12/31/2005), use old table
• After 12/31/2005, use new table
• Retirement age per PBGC regs
• Discount rate
• 4044 immediate and deferred rates
• Published monthly

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Where to find assumptions for reporting benefit
liabilities
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Schedule P
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Schedule P
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Schedule F
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Schedule F
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Schedule F for consolidated statements
See blue book for definitions
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Filing deadline

• In general
• 105 days after Information Year ends
• In general, April 15th for calendar year fiscal
  years
• 4/15/2006 is a Saturday, so filing due on 4/17
• Up to 1,100 per day fine for late or incomplete
  filing
• In some cases, extensions/waivers may be granted
• Supplemental actuarial information
• 15 days after 5500 deadline

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Post-submission attachments

• Use amend filings feature from home page
• Automatically applies to
• valuation report
• In some cases, audited financial statements
• Anything else, contact PBGC

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Where to go for help

• Phone (202) 326 - 4070
• e-mail ERISA4010_at_pbgc.gov

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Whats next

• Depends on legislation
• House - aggregate funding ratio lt 60
• Senate
• 50 million UVBs and lt 90 funded, or
• 50 million UVBs and below investment grade
  sponsor, or
• Aggregate funding ratio lt 60,
• Expected impact
• Either bill will bring in many small plans
• House will exempt almost all large plans
• Senate will exempt many large plans
• Holding off on enhancements until legislation is
  settled
• Still interested in comments/suggestion to
  improve application