On January 18, we published a blog post regarding new Department of Labor (“DOL”) guidance on missing plan participants. That post is available here, and describes the DOL’s guidance on.
BY
January 21, 2021
Efforts to address the funding crisis facing multiemployer pension plans, as well as provide single employer funding relief, just got a big boost from a key member of Congress.
House Ways & Means Committee Chairman Richard Neal (D-MA) on Jan. 21 introduced the Emergency Pension Plan Relief Act of 2021 (EPPRA), which is an updated version of the Butch Lewis Act and the first piece of legislation Neal introduced in the new 117
th Congress, signaling the importance of the issue to him.
“The workers and retirees enrolled in these failing plans did everything right they put away money year after year to save for their futures, even forgoing pay raises to do so,” Chairman Neal said in a statement announcing the introduction of the legislation.
Pension plans would no longer be able to seek a reduction in benefits under MPRA.
PBGC would begin receiving federal funding and double its maximum guaranteed benefit.
Four Democratic US representatives are introducing legislation they say will protect workers, retirees, employers, and taxpayers from the multiemployer pension crisis and beef up the Pension Benefit Guaranty Corporation (PBGC).
The Emergency Pension Plan Relief Act of 2021 (EPPRA), sponsored by Rep. Robert Scott, D-Virginia; Rep. Donald Norcross, D-New Jersey; Rep. Haley Stevens, D-Michigan; and Rep. Joe Morelle, D-New York, would create a special partition program that would expand PBGC’s authority, increase the number of eligible plans, and simplify the application process.
The Retirement Plan Best Practices Release summarizes what the DOL views as “best practices” for retirement plan fiduciaries navigating issues around missing participants, and “red flags” that the DOL views as indicators of retirement plan fiduciaries who have a problem with missing or nonresponsive participants. As such, the Retirement Plan Best Practices Release provides a framework for fiduciaries to consider in meeting their obligations to attempt to locate missing participants or obtain instructions from nonresponsive participants.
,Terminated Vested Participants Project Defined Benefit Pension Plans (TVPP Audit Release)
The TVPP Audit Release guidance outlines practices that the DOL views as appropriate for the TVPP audits. The guidance notes that that these investigations are focused on plans “that appear to have systemic issues with plan administration, particularly issues related to keeping track of terminated vested participants and beneficiaries, and timely dis
Legal Disclaimer
You are responsible for reading, understanding and agreeing to the National Law Review s (NLR’s) and the National Law Forum LLC s Terms of Use and Privacy Policy before using the National Law Review website. The National Law Review is a free to use, no-log in database of legal and business articles. The content and links on www.NatLawReview.com are intended for general information purposes only. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.