Tag: multiemployer plans

Barry’s Pickings: November 7—Five Good Questions

Michael Barry, president of October Three (O3) Plan Advisory Services LLC, points out that, while the candidates for the midterm elections are not spouting their views on retirement policy as part of their platforms, the results of the elections may indeed affect retirement policy.

PBGC Posts 2019 Premium Rates

A table on the PBGC’s website shows that the flat-rate premium for single-employer plans has grown from $31 in 2007 to $80 in 2019, and the variable-rate premium has grown from $9 to $43.

PBGC Issues Guidance Designed to Keep Multiemployer Plans Solvent Longer

Regarding guidance to assist multiemployer pension plans that request PBGC review of alternative plan rules for satisfying employer withdrawal liability, the agency said for example, some proposals include incentives for employers to remain in the plan by providing discounted withdrawal liability that is conditioned on continued employer participation for a specified period of years.

Plan Withdrawals Continue to Affect Multiemployer Plans

Based on a partial year of data for 2016, 1.3% of all employers withdrew, affecting 19% of plans that covered 67% of all participants, the Society of Actuaries found. Withdrawal liability assessments were not nearly enough to cover these plan’s unfunded liabilities.