Retirement plans compliance newsletter for September 2025

• PBGC Miscellaneous Final Rule
  PBGC issued its final rule outlining miscellaneous technical corrections that address premium rates, due dates, and deadlines for terminating single-employer retirement plans.
• Access to Alternative Assets Executive Order
  President Trump signed an Executive Order stating that participants in defined contribution plans should have access to investments in alternative assets.
• Disaster Relief for West Virginia
  The IRS and PBGC have issued disaster relief in response to severe storms and other disaster events in West Virginia.

On January 21, 2025, the Pension Benefit Guaranty Corporation (PBGC) issued proposed miscellaneous technical corrections, clarifications, and improvements. On August 15, 2025, the PBGC finalized these corrections, clarifications, and improvements. The final rule is substantially the same as the proposed rule. Below are highlights of three items included in the final rule.

CSEC Premium Rates

Signed into law on December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 modified how flat and variable rate PBGC premiums are calculated for cooperative and small employer charity (CSEC) retirement plans. The changes in part included how the variable rate premiums were calculated.

Although these changes have been in place since the 2021 PBGC filing instructions were published, the PBGC amended its premium rates regulations to codify these changes.

Single-Employer Plan’s Termination Date

A standard termination requires the plan sponsor to do the following:

1. Issue notices of intent to terminate (NOIT) and notices of plan benefits to participants, beneficiaries, and other affected parties;
2. File a standard termination notice and post-distribution certification (certification) with PBGC;
3. Distribute the plan’s assets.

The due date for the standard termination notice is dependent on the termination date which is either specified in the standard termination notice or the NOIT (but not later than 90 days after the earliest NOIT was provided to any party).

If a plan sponsor, though, fails to specify a date in the NOIT or fails to file a standard termination notice, the termination date becomes unclear.

The PBGC finalized its proposed rule setting a deadline for the standard termination notice to the earlier of 180 days after the proposed termination date specified in the standard termination notice or 60 days before making any distribution.

Plan Term Post-Distribution Certification Deadline

The final step in a standard single-employer plan termination is filing the certification within 30 days of when the final benefits are distributed. The PBGC premium is also due. In 2014, the deadline for the PBGC premium was changed to be the earlier of the normal premium due date or the date when the certification is filed.

Based on comments PBGC received, the final rule changed the deadline to be the earlier of the normal premium due date or the date 45 days after the certification is filed.

Additionally, if a plan administrator files a standard termination notice within 180 days of the proposed termination date, there will be a 90-day grace period before penalties are assessed on an untimely certification.

Effective Date

The final rule is effective on September 15, 2025.

On August 7, 2025, President Trump signed an Executive Order (Order) stating that participants in defined contribution plans should have access to alternative assets for the potential of better returns and diversification when planning for retirement.

Order Highlights

• The Order does not change current law but directs the Department of Labor (DOL) and other agencies to reexamine existing guidance in connection with making available to participants an asset allocation fund that includes investments in alternative assets.
• Alternative assets, defined in the Order, include private market investments, interests in real estate, investments in commodities, infrastructure development, and lifetime income strategies including longevity risk-sharing pools.
• The Order also directs the DOL to:
  • Clarify the fiduciary process associated with offering asset allocation funds containing investments in alternative assets.
  • Prioritize actions that may curb ERISA litigation, which the Order states has constrained plan fiduciaries from offering such investment opportunities.

More Information

The Order gives the DOL 180 days from the date of the Order to reexamine guidance and clarify the fiduciary process related to investments in alternative assets. We will keep you informed when new guidance is issued.