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Compliance March 18, 2008
PBGC to Publish Multiemployer Plan PPA Rule Changes
March 18, 2008 (PLANSPONSOR.com) - The nation's
private-sector pension insurer announced on Tuesday that it
will publish a proposed new rule implementing changes
mandated by the Pension Protection Act to the withdrawal
liability methods for multiemployer plans.
Reported by Fred Schneyer
The proposed rule amends the Pension Beneift Guaranty Corporations’s (PBGC’s) regulation on Allocating Unfunded Vested Benefits toWithdrawing Employers to implement provisions of the PPA that provide for changes in the allocation of unfunded vested benefits to withdrawing employers from a multiemployer pension plan and that require adjustments in determining an employer’s withdrawal liability when a multiemployer plan is in critical status.
The announcement by the PBGC said the proposed rule puts into place PPA regulations under the agency’s regulatory authority including the “fresh start” option for determining withdrawal liability.
Public comments on the proposed rule are due by May 18, 2008.
More information is available here . The proposed rule printed in the March 19, 2008 Federal Register is here .