The Internal Revenue Service Friday provided guidance to multiemployer retirement plans that receive special assistance from the Pension Benefit Guaranty Corp.
Notice 2021-38 gives direction to multiemployer defined benefit pension plans that are financially at risk regarding:
- The reinstatement of previously suspended pension benefits, along with make-up payments, as a condition that eligible multiemployer plans must meet if they receive special financial assistance;
- The individual income tax treatment of these make-up payments; and
- How a plan that receives special financial assistance must treat the plan’s special financial assistance account for purposes of the minimum funding requirements for the plans.