On Friday January 8, the Pension Benefit Guaranty Corporation (PBGC) published a final rule that provides multiemployer pension plans with additional methods to help calculate employer.
/PRNewswire/ The Teamsters today are hailing the introduction of the Emergency Pension Plan Relief Act (EPPRA) by House Ways & Means Committee Chairman.
Norcross, House Democrats to Introduce Legislation to Protect Retirees’ Pensions Amid COVID-19 Crisis January 21, 2021, 11:50 am | in
Norcross, House Democrats to Introduce Legislation to Protect Retirees’ Pensions Amid COVID-19 Crisis
WASHINGTON, DC – Today, Congressman Donald Norcross (NJ-1) will join House Committee on Education and Labor Chairman Robert C. “Bobby” Scott (VA-03), Congresswoman Haley Stevens (MI-11) and Congressman Joe Morelle (NY-25) to introduce legislation to shield workers, retirees, employers and taxpayers from the devastating consequences of the multiemployer pension crisis. The Emergency Pension Plan Relief Act of 2021 (EPPRA) would prevent the imminent collapse of failing multiemployer plans and fully protect the hard-earned retirement benefits of more than one million Americans.
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On January 7, 2021, the Pension Benefit Guaranty Corporation (“PBGC”) issued final regulations updating its guidance under sections 4211 and 4219 of the Employee Retirement Income Security Act of 1974 (“ERISA”), which govern the calculation of an employer’s withdrawal liability and the payment of that liability, respectively. Specifically, the regulations provide simplified methods for calculating withdrawn employers’ allocable share of the plan’s unfunded vested benefits disregarding certain benefit reductions and contribution increases, as required by law. The final regulations closely follow proposed regulations that PBGC issued on February 6, 2019.
Background
The Pension Protection Act of 2006 (“PPA”) permits plans in critical status to reduce “adjustable benefits”, which most commonly include early retirement subsidies for participants not in pay status and benefit improvements that have been i
Stars Have Aligned for Union Pension Funding Action
Sources hopeful for Congressional action say arguments about saving union pensions should be linked to the broader social and economic challenges facing the U.S. and its labor force.
Reported by
A little over a month ago, Russell Kamp, managing director at Ryan ALM, spoke with PLANSPONSOR about the funding crisis facing many, but not all, union-sponsored multiemployer pension funds.
At the time, Kamp said much was at stake for union pensions based on the outcome of the two early January Senate runoff elections in Georgia. Like many other observers commenting at the time, Kamp felt it was likely that at least one of those elections would be won by a Republican, and the assumption of divided government made him fairly pessimistic about the possibility of serious union pension reform occurring this year.