BENEFITS DIGEST

The Pension Benefit Guaranty Corporation, which insures private-sector pensions, published a new set of frequently asked questions on coverage determinations, the process for getting an official answer on whether a plan falls under PBGC insurance at all. Sponsors or their actuaries, accountants, attorneys and third-party administrators can ask at any time, and the FAQs list exactly what to send in. Plans claiming an exemption need to provide more detail. A plan said to cover only a substantial owner must document ownership percentages going back 60 months, stock options and family relationships. A small professional service employer must show it has never had more than 25 active participants since 1974 and describe the owners’ professions and education. Church plans and Puerto Rico based plans get their own checklists. PBGC says incomplete submissions and slow responses are the main causes of delay, and an unfavorable answer can be appealed to its Appeals Board.

Williams Mullen extends its year-end checklist series to governmental and church plans outside ERISA. Amendment deadlines depend on the type of plan and the change involved: for many nongovernmental plans, amendments documenting optional SECURE and SECURE 2.0 features already in use are due December 31, 2026, while required amendments can have later deadlines and governmental plans generally have additional time, a distinction the [IRS clarified this month](https://content.govdelivery.com/accounts/USIRS/bulletins/42b06be). Sponsors should document operational changes now so the eventual amendment matches how the plan actually works. The Roth catch-up requirement for participants whose prior-year FICA wages topped $150,000 applies for 2026 and rewards a payroll-system check. Also on the list: the IRS now issues determination letters for individually designed 403(b) plans, and the 2023 proposed forfeiture regulations, which generally require defined contribution forfeitures to be used within 12 months after the close of the plan year in which they arise, can be relied on now.