Premiums: Ways to Improve Exemption Determinations

We found that PBGC premium exemption determinations can be improved with additional supporting documentation. For the 19 plans we reviewed, 13 of the exemptions lacked documentation supporting the plan’s basis for exemption. We further found that team leaders did not always review coverage exemptions, as required. Lastly, we identified three substantial owner exemptions, granted by PBGC, that require further review. We issued four recommendations to management including updating the Processing and Technical Assistance Branch Manual to require additional supporting documentation, training staff on the manual revisions, reviewing the three plans identified in the report to determine if properly exempted, and updating procedures regarding supervisor review of coverage decisions. PBGC agreed with the four recommendations and plans to complete corrective action by September 30, 2017.