Federal Pension Insurer Eases Merger Rule for Some Plans

Pension plans for unionized workers will now have an easier path to merging and transferring plans to delay insolvencies under a new rule by the federal agency that insures U.S. pensions.

The Pension Benefit Guaranty Corporation says easier mergers will save money from lower administration and investment expenses, and provide greater stability by expanding the base of employers that contribute to a multiemployer plan.

The agency can assist two or more multiemployer plans that merge to keep one of those plans from insolvency, under the Multiemployer Pension Reform Act in 2014, also known as the Kline-Miller Act.

The final rule, ...