Government Affairs
The Pension Benefit Guaranty Corporation (PBGC) has issued a final rule amending its administrative review regulation. The rule makes all agency coverage determinations subject to appeal, clarifies and simplifies the procedures for requesting administrative review, and codifies PBGC practices.
On Oct. 4, 2019, the PBGC published this rule in proposed form. It received no comments on the proposed rule, so the final rule is the same as the proposed rule.
On Oct. 4, 2019, the PBGC published this rule in proposed form. It received no comments on the proposed rule, so the final rule is the same as the proposed rule.
The PBGC’s Rules for Administrative Review of Agency Decisions provide procedures so that those aggrieved by its determinations can present their positions to the PBGC before it makes a final decision. The PBGC developed an administrative review system that includes reconsideration and appeal processes in order to balance the need to provide fair and effective administrative review and the need to minimize the time and cost entailed in obtaining PBGC review of its decisions.
Major Provisions
This final rule:
- Subjects all coverage determinations to appeal.
- Subjects all determinations concerning the allocation of a trusteed plan’s assets upon plan termination to appeal, except for determinations concerning the distribution of residual assets, which remain subject to reconsideration.
- Clarifies that, consistent with the PBGC’s long-standing practice, when the PBGC makes an initial determination effective on the date of issuance, a person aggrieved by that
- determination has no right to request reconsideration or appeal of the determination.
- Clarifies where to send requests for extensions on appeals and extensions for
- reconsideration.
- Clarifies that persons seeking administrative review may request information in the PBGC’s possession by using the agency’s procedures for requests under the Freedom of Information Act and the Privacy Act.
This final rule applies only to plans covered by the PBGC’s single-employer plan termination insurance program. This rule is effective 30 days after it appears in the Federal Register; similarly, the amendments subjecting all coverage determinations to the appeals process under § 4003.1(e)(1) of this final rule apply to initial determinations that are subject to this part and issued on or after the same date.
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