On November 2, the Pension Benefit Guaranty Corporation (PBGC) announced that it is implementing a pilot program changing its enforcement approach with regard to ERISA section 4062(e). ERISA section 4062(e) requires employers with pension plans to report to the PBGC when they stop operations at a facility and employees lose their jobs. In such a case, 4062(e) requires the employer to provide financial security to protect the plan. As a result, the PBGC generally had required that employers make additional contributions or provide a financial guarantee. Under the new enforcement policy, the PBGC will not enforce section 4062(e) against small plans with 100 participants or less or against "creditworthy" employers. Instead, the PBGC will target its enforcement efforts at employers where the risk remains substantial. The PBGC stated that it will make this determination based on common financial measures of financial soundness, such as credit ratings, credit scores, indebtedness, liquidity and profitability. As a result of this change in the PBGC enforcement policy, the PBGC estimates that 92% of companies that sponsor pension plans will not face enforcement efforts. Employers still must report 4062(e) events to the PBGC (using PBGC Form 4062-E).