Pension plan sponsors have additional tools to help them calculate withdrawal liability from underfunded multiemployer programs under new regulations released Thursday.
The Pension Benefit Guaranty Corporation’s final rule builds on benefit law changes involving how to account for adjustable benefit reductions, suspension, surcharges, and contribution increases.
The latest guidance provides suggested, but not mandatory, methods for determining a withdrawing employers’ share of nonforfeitable benefits plus its annual liability payments—which can be spread out for up to 20 years.
Core changes include:
- simplified methods for disregarding adjustable benefit reductions and benefit suspensions, and;
- simplified methods for disregarding certain contribution increases in ...