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.
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.