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Reportable Event
Practical Law Glossary Item 4-507-9109 (Approx. 3 pages)
Glossary
Reportable Event
In the employee benefit context, an event that may ultimately cause a defined benefit (pension) plan to be terminated. Reporting may be required before or after the event.
Reportable events for pension plans include a:
- Significant decrease in the number of active participants.
- Plan's failure to make required minimum funding payments.
- Plan's inability to pay benefits when due.
- Distribution to a substantial owner of a contributing sponsor of the plan.
- Transaction that has resulted or will result in changes to a plan's controlled group.
- Plan merger, consolidation, or transfer of assets or liabilities.
For an explanation of all of the reportable events for pension plans, see Practice Notes, Reportable Events for Pension Plans Under ERISA Occurring on or After January 1, 2016 and Reportable Events for Pension Plans Under ERISA Occurring Before January 1, 2016.
Under ERISA, the plan administrator or the contributing sponsor must notify the Pension Benefit Guaranty Corporation (PBGC) within 30 days of knowing or having reason to know that an event has occurred. For information on these notice requirements, see Notice Requirements for Reportable Events Occurring on or After January 1, 2016 Checklist and Notice Requirements for Reportable Events Occurring Before January 1, 2016 Checklist.
Advance notice of certain events is required when:
- The sponsor and the member of the plan's controlled group to which the event relates are not public companies.
- The aggregate unfunded vested benefits of all single-employer defined benefit plans maintained by the sponsor and its ERISA affiliates exceed $50 million.
- The aggregate value of plan assets is less than 90% of the aggregate premium funding target.