The agency is required to adjust these amounts annually for inflation.
The idea is to put participants with lesser unfunded vested benefits (UVBs) in one plan, and those with greater UVBs in another.
Beginning in January, terminating DC plans will have the option of transferring missing participants’ benefits to PBGC instead of establishing an individual retirement account (IRA) at a financial institution.
A final rule provides a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2018.
“IHI cannot delegate fully its statutory responsibilities under ERISA,” a federal judge says in her opinion.
Michael Barry, president of the Plan Advisory Services Group, discusses how the accounting measures for multiemployer plans contributed to their current crisis.
The request regards distress terminations and PBGC-initiated terminations of DB plans.
IRS compliance questions have been removed from the form.
PBGC data shows the multiemployer program had liabilities of $67.3 billion and assets of $2.2 billion as of September 30, 2017.
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.
According to a Sears announcement, following the making of a $407 million contribution, it will be nearly relieved of the obligation to make further contributions to the pension plans for approximately two years.
“By providing an alternative dispute resolution option for employers who sponsor ongoing and terminated plans, we expect to save time and money for both the government and our stakeholders,” says PBGC Director Tom Reeder.
A technical update provides an alternative method for determining whether reporting an attrition event to the PBGC is required.
The agency is proposing that termination forms may be filed electronically and that plan sponsors be offered a pre-filing consultation.
The relief applies to PBGC premiums, single-employer plan terminations, reportable event notices, annual employer reporting, requests for reconsideration or appeals and multiemployer plan deadlines.
The agency is proposing two modifications for multiemployer plans and one modification for single-employer plans.
“Companies feel that the time is right to reduce or eliminate their pension funding shortfalls.” says Matt McDaniel, partner, Mercer.
The PBGC and DOL also are providing relief similar to that provided to Hurricane Harvey victims.
The agency says the financial assistance, together with benefit reductions that are required as a condition for receiving PBGC assistance, will help the United Furniture Workers Pension Fund A to avoid insolvency and to pay benefits to participants.