What's New Update: Clarification to Guidance on Mergers and Transfers Between Multiemployer Plans

You are subscribed to What's News for Practitioners updates for the Pension Benefit Guaranty Corporation (PBGC). PBGC has recently posted the following update to the What's New for Practitioners web page:

Clarification to Guidance on Mergers and Transfers Between Multiemployer Plans: On September 14, 2018, PBGC published a final rule to implement its authority to facilitate mergers of multiemployer pension plans. PBGC has posted a clarification to the preamble in the second example of how a plan can demonstrate that financial assistance is necessary to mitigate the adverse effects of the merger on the merged plan’s ability to remain solvent. This example in the preamble states that, “while not a threshold, a possible demonstration may be based on stochastic modeling showing that the merged plan’s probability of insolvency within 30 years of the merger exceeds 65% without the requested financial assistance.” (See 83 FR 46642, at 46647 column 3). The percentage in this example should be 35% (not 65%). (07/15/2019)

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