Data to Study Multiemployer Plan Guaranty Program

OMB 1212-0000

Expiration date: 00/00/00

PBGC Letterhead

[Insert date], 2014

Plan Administrator

XYZ Multiemployer Plan

1234 Solvency Lane

Anytown, MD 20202

Dear Ms. Administrator:

PBGC is requesting certain certified red zone multiemployer plans to voluntarily provide information in connection with its research on policy options expected to be considered before the 2014 sunset of the multiemployer pension plan funding rules under the Pension Protection Act of 2006. We are asking for your help with this research, which will be useful to us and, we believe, to your plan.

PBGC is researching the effects of potential policy options that could help multiemployer plans avoid insolvency. In order to assess a particular policy option, PBGC needs to quantify its impact on the plans’ projected dates of insolvency, the amount of financial assistance that PBGC might be expected to provide, and any benefit changes that plan participants might experience. This research will be used to inform PBGC’s recommendations on potential policy options to address risks faced by multiemployer plans, with the goal being to provide more ways for plans and their trustees to better manage the possible risk of insolvency many plans now face.   

Participation in this project is entirely voluntary. Any information provided in response to this request will not be used for any PBGC enforcement activities, but will be used only for research purposes and will be subject to our standard confidentiality agreement (available upon request). The names of the plans submitting data in support of our research will not be revealed in any report distributed outside of PBGC.

The information we need for this research project is:

1. Participant census data provided to the plan actuary in connection with preparation of the annual valuation – this would include:

   • Accrued benefit

   • Date of birth

   • Amount of credited service used to determine the accrued benefit for both active and inactive participants (or the dates that credited service began and ended)

   • Gender

   • Status of participant (active, inactive vested, retiree, beneficiary)

   • For participants in pay status: form of payment, date payments began and beneficiary data

   • Any plan specific data needed to replicate actuarial valuation results

2. Actuarial valuation report.

3. Cash flow projections that the plan actuary developed in connection with the plan’s rehabilitation plan annual update and a summary of the actuarial assumptions utilized in the projections.

We request the most recent valuation report and cash flow projections that are based on the same participant census data. For example, a calendar year plan might supply the participant census data as of January 1, 2012, the 2012 valuation report, and the cash flow projections used for the 2013 zone certification.

We anticipate that this information is readily available since it has either already been provided to the plan actuary or is the plan actuary’s work product and that little time and effort will be required to furnish the information to PBGC. If credited service information is not available for all retirees, please contact us to discuss alternative methods of estimating PBGC guaranteed benefits for retirees.

We do not want to receive any personally identifiable information (such as name, address, social security number, etc.) in the participant census data. The file should contain an individual record for each participant included in the actuarial valuation with sufficient detail to replicate the valuation results.

Thank you for your consideration in assisting the PBGC on this important research effort. Information should be submitted electronically to David Gustafson, Chief Policy Actuary at [email protected]. Please contact Mr. Gustafson at 202-326-4080 x3218 if you have any questions about this request.