Central States Pension Fund Developing Rescue Plan

Franczek P.C.
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The Central States Pension Fund has announced that it will adopt a “rescue plan” under which certain participant benefits will be reduced. The Multiemployer Pension Reform Act of 2014 (MPRA), which was signed into law on December 16, 2014, includes a controversial provision allowing deeply troubled multiemployer pension plans to voluntarily reduce benefits. We discussed this controversial provision and MPRA generally in a prior alert. Central States’ announcement indicates that its trustees intend to take advantage of the new law, although specific details on the benefit reductions are not yet available. The rescue plan will have to be submitted to the U.S. Department of Treasury and voted on by participants and beneficiaries before it can be implemented. The fund has established a website to provide updates about the rescue plan. A copy of the letter that Central States sent to participants announcing the rescue plan as well other participant communications are available through the rescue plan website.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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