The likelihood the program will remain solvent after FY 2026 is now less than 1%.
Tag: multiemployer plans
The 9th Circuit depended on its own precedent in finding that unpaid contributions to employee benefit funds are not plan assets and, therefore, the company owners are not fiduciaries under ERISA with respect to unpaid withdrawal liability.
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.
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.
In addition to being barred as serving as a fiduciary for five years, the fund manager is ordered to make more than $45,000 in restitution to the plan, according to a Department of Labor news release.
The move is designed to protect pensions for Kroger associates who participate in the Central States Pension Fund, which is projected to go insolvent in 2025.
Michael Barry, president of the Plan Advisory Services Group, discusses how the accounting measures for multiemployer plans contributed to their current crisis.
In an issue brief, researchers for the Center for Retirement Research at Boston College discuss plan partitions, benefits cuts, subsidized loans and tax payer support.
The agency is proposing two modifications for multiemployer plans and one modification for single-employer plans.