Blogging Employee Benefits

January 13, 2006

4010 Gateway Test Relief

Filed under: PBGC — Fuguerre @ 4:35 am

The PBGC has provided relief waiving reporting under 29 CFR 4010 for information years ending on or after 12/31/2005 and on or before 6/30/2006 for employers who would not be required to file if, for purposes of the 4010 gateway test, the PFEA 85% corporate rate had been used for valuing vested benefits. [PBGC Technical Update 06-1]

The relief is provided in contemplation of enactment of pending legislation, which would extend use of the 85% corporate rate in the 4010 gateway test for another year beyond its expiration at the end of 2005.  The PBGC’s relief provision does not affect the determination of PBGC premiums or any other reporting requirements.


  1. […] As previously noted here, the PBGC has granted 4010 filing relief hrough June 30, 2006, for pension plans that would satisfy the 4010 Gateway Test on the basis of measurement of vested benefits using 85% of the corporate bond rate. Technically, use of that rate expired at the end of 2005, but pension reform legislation broadly expected to be enacted early in 2006 would extend use of that rate effective as of the beginning of 2006, so the PBGC quite generously has waived 4010 reporting for those pension plans that would benefit from the legislation. […]

    Pingback by BeneBlog » Blog Archive » PBGC Backs Up Its Own Relief — January 20, 2006 @ 4:30 pm

  2. […] As noted in a previous BeneBlog post, separately the PBGC has provided interest rate relief for the 4010 gateway for information years ending 1/1/2006 through 6/30/2006. […]

    Pingback by BeneBlog » Blog Archive » New Electronic Version for PBGC Form 4010 — January 28, 2006 @ 7:02 am

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