PBGC Issues Proposed Rule on Terminated and Insolvent Multiemployer Plans
The Pension and Benefit Guaranty Corporation (PBGC) has published a proposed rule
it intends to improve the efficiency of reporting and disclosure of plan information by terminated and/or insolvent multiemployer plans not only to the PBGC, but also to plan participants and beneficiaries.
Certain terminated plans and insolvent plans must provide notices of insolvency and notices of insolvency benefit level. The proposed rule would remove outdated information included in the notices and would eliminate the requirement to provide most annual updates to the notice of insolvency benefit level.
Current regulations require multiemployer plans terminated by mass withdrawal to perform an annual actuarial valuation of the plan’s assets and liabilities. Under the proposed rule, smaller plans terminated by mass withdrawal would be able to perform actuarial valuations less frequently than that. The proposed rule also would add new requirements for plan sponsors of certain terminated plans and insolvent plans to file their actuarial valuations and withdrawal liability information with the PBGC.
The PBGC believes that the proposed rule would reduce plans’ administrative costs and also could reduce the financial assistance the PBGC provides.
The PBGC will accept comments on the proposed rule until 60 days after it is published in the Federal Register
. Instructions for submitting comments are provided in the proposed rule.