PBGC to Issue Final Rule Implementing MPRA Changes to Employer Withdrawal Liability
The Pension Benefit Guaranty Corporation (PBGC) has announced that it is publishing a final rule on January 8, 2021 that implements statutory changes under the Multiemployer Pension Reform Act (MPRA) of 2014 affecting the determination of a withdrawing employer’s liability under a multiemployer plan and annual withdrawal liability payment amount.
The final rule provides simplified methods for determining withdrawal liability and annual payments that a plan sponsor may adopt to satisfy the statutory requirements that certain amounts associated with funding improvement/rehabilitation plans and benefit suspensions be disregarded.
The rule is effective February 8, 2021, and applies to employer withdrawals from multiemployer plans that occur in plan years beginning on or after February 8, 2021.
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