The Washington Report
July 18, 2018
PBGC Publishes Proposed Rule on Terminated and Insolvent Multiemployer Plans and Duties of Plan Sponsors
On July 16, 2018, the Pension Benefit Guaranty Corporation (PBGC) published a proposed rule that would make more efficient certain reporting and disclosure of plan information by terminated and/or insolvent multiemployer plans to the PBGC and 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 The proposed rule would remove outdated information included in the notices and would eliminate the requirement to provide most annual updates to the notice of insolvency benefit level. Under current regulations, multiemployer plans terminated by mass withdrawal must 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. 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 PBGC. Comments on the proposed rule are due by September 14, 2018.
The proposed rule is available here.
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