News & Analysis as of

Retirement Plan Pension Benefit Guaranty Corporation Pensions

Groom Law Group, Chartered

Accelerated PBGC Premium Deadline for 2025 – Unless Congress Acts…

Under the Bipartisan Budget Act of 2015 (“BBA 2015”), Pension Benefit Guaranty Corporation (“PBGC”) premiums for plan years beginning in 2025 are due one month earlier than normal. For example, for calendar year plans,...more

Faegre Drinker Biddle & Reath LLP

PBGC Issues Technical Update on Accelerated Due Date for 2025 Premium Filings

The Pension Benefit Guaranty Corporation (PBGC) has issued its first technical update of the year to provide guidance on the accelerated premium filing date for plan years that begin in 2025. As required by a provision in the...more

Pullman & Comley - Labor, Employment and...

PBGC Updates Premium Rates for 2025

The Pension Benefit Guaranty Corporation (PBGC) insures most private sector (i.e., non-governmental) defined benefit pension plans. The Plan Administrator of each pension plan covered under ERISA is required to annually file...more

Carlton Fields

Sometimes, Pension De-Risking Makes Cents

Carlton Fields on

In a defined benefit plan, participants usually accrue a monthly benefit based on a formula that typically considers their last three years’ salary before retirement and years of service with their employer. For example, the...more

Fisher Phillips

Withdrawal Liability Calculations for Multiemployer Pension Plans: What Employers Must Know About Financial Exposure

Fisher Phillips on

“Withdrawal liability” blindsides many employers when they stop contributing to collectively bargained pension plans. Multiemployer plans have used different calculations for years that inflate the withdrawal liability they...more

Carlton Fields

Studebaker: From Coupe to Coup

Carlton Fields on

In the early days of the workforce, retirement was a foreign concept—people worked until they died. Life expectancy was significantly lower than it is today, making the idea of retirement nearly irrelevant....more

Bricker Graydon LLP

Pension Risk Transfer Considerations and Recent Litigation - A Case of Imprudent “Passing the Buck” or Sound Risk Management?

Bricker Graydon LLP on

Over the last several years, numerous large pension plan sponsors have transferred billions of dollars in financial risk related to their pension plan benefit obligations to insurance companies through the purchase of group...more

Morgan Lewis - ML Benefits

Recent Updates Regarding the Special Financial Assistance Program

Recent action taken by the Pension Benefit Guaranty Corporation (PBGC) and the US Department of Labor (DOL) will affect plans that are eligible for, or have received, special financial assistance (SFA). SFA-eligible plans...more

Groom Law Group, Chartered

PBGC Update: 4010 Reporting Waivers & Benefit Payment Regulations

The Pension Benefit Guaranty Corporation (“PBGC”) recently issued Technical Update Number 23-1 to provide for certain underfunded pension plans a limited waiver from the reporting requirements under ERISA section 4010 due to...more

Morgan Lewis - ML Benefits

Window of Opportunity Available for Reducing 2023 PBGC Premiums

Single-employer defined benefit pension plans that have elected to use the “alternative method” for determining Pension Benefit Guaranty Corporation (PBGC) premiums have a window to take action that may significantly reduce...more

Faegre Drinker Biddle & Reath LLP

Final Changes Announced to Forms 5500 and 5500-SF

The Department of Labor (DOL) announced that it has finalized, together with the Internal Revenue Service (IRS) and Pension Benefit Guarantee Corporation (PBGC), the third and final round of revisions to the Form 5500 Annual...more

Foley & Lardner LLP

Diving Into SECURE 2.0: Changes for Defined Benefit Pension Plans

Foley & Lardner LLP on

...Cash Balance Plan Compliance with Back-Loading Requirements - The rate at which a participant accrues benefits under a defined benefit pension plan must satisfy certain rules designed to ensure that the participant has...more

Proskauer - Employee Benefits & Executive...

SECURE 2.0 Includes PBGC Premium Relief… for Some Plans

As previously discussed, the SECURE 2.0 Act of 2022 (“SECURE 2.0”) that was signed into law on December 29, 2022 as part of the 2023 Consolidated Appropriations Act includes a slew of changes for retirement plan sponsors and...more

Littler

PBGC Issues Proposed Rule on Withdrawal Liability Actuarial Interest Rate Assumptions

Littler on

On October 14, 2022, the Pension Benefit Guaranty Corporation (PBGC), the federal agency that insures and regulates private-sector defined benefit pension plans under Title IV of the Employee Retirement Income Security Act of...more

Fox Rothschild LLP

What Employers That Contribute to Multiemployer Plans Receiving 'Special Financial Assistance' Need to Know

Fox Rothschild LLP on

In a prior alert, we detailed how the Interim Final Rule (IFR) from the Pension Benefit Guaranty Corporation (PBGC) regarding the special financial assistance (SFA) provided under American Rescue Plan Act of 2021 (ARPA) would...more

Venable LLP

PBGC Issues Final Rules Regarding Special Financial Assistance Program: What Contributing Employers Should Know

Venable LLP on

On July 6, the Pension Benefit Guaranty Corporation (PBGC) issued the Final Rules (Final Rules) implementing the Special Financial Assistance Program (SFA) enacted by Congress as part of the American Rescue Plan Act of 2021...more

Seyfarth Shaw LLP

PBGC Finally Publishes Final Rule On Special Financial Assistance Program

Seyfarth Shaw LLP on

Seyfarth Synopsis: On July 8, 2022, the Pension Benefit Guaranty Corporation (“PBGC”) published its final rule (“Final Rule”) on the Special Financial Assistance (“SFA”) Program established under the American Rescue Plan Act...more

Proskauer - Employee Benefits & Executive...

PBGC Issues Final Rule on Special Financial Assistance Program for Troubled Multiemployer Pension Plans

On July 8, 2022, the Pension Benefit Guaranty Corporation (“PBGC”) published its much anticipated final rule on the special financial assistance (“SFA”) available to certain troubled multiemployer plans under the American...more

Proskauer - Employee Benefits & Executive...

[Podcast]: Special Financial Assistance for Multi-employer Pension Plans (Part 2)

This episode of The Proskauer Benefits Brief is the second of our three-part series analyzing the Pension Benefit Guaranty Corporation (PBGC) guidance on the new special financial assistance program for troubled multiemployer...more

Proskauer - Employee Benefits & Executive...

[Podcast]: Special Financial Assistance for Multiemployer Pension Plans (Part 1)

This episode of The Proskauer Benefits Brief is the first of our three-part series analyzing the Pension Benefit Guaranty Corporation (PBGC) guidance on the new special financial assistance program for troubled multiemployer...more

Proskauer Rose LLP

PBGC Issues Guidance on New Special Financial Assistance Program for Troubled Multiemployer Pension Plans

Proskauer Rose LLP on

As we previously reported, the American Rescue Plan Act of 2021 (“ARPA”) created a special financial assistance program that is administered by the Pension Benefit Guaranty Corporation (“PBGC”) and intended to extend the...more

Fisher Phillips

Mixed News for Employers as PBGC Releases Multiemployer Bailout Plan Rule

Fisher Phillips on

The federal agency overseeing voluntary private defined benefit pension plans just issued its Interim Final Rule on how withdrawal liability will be impacted by the billions of dollars that will be paid to failing...more

Faegre Drinker Biddle & Reath LLP

PBGC Issues Interim Regulations on Special Financial Assistance for Multiemployer Pension Plans

Multiemployer pension plans are collectively bargained defined-benefit employee benefit plans that are funded by several unrelated employers for the benefit of unionized employees. In recent years, the crisis of significantly...more

Akin Gump Strauss Hauer & Feld LLP

Pension Reform Forces Employers to Consider Their Future Participation in Multiemployer Plans

Many employers in the retail, construction, service, entertainment, manufacturing and transportation industries contribute to multiemployer defined benefit pension plans (MEPs) on behalf of their unionized employees. A large...more

Foley & Lardner LLP

Employers Should Not Assume that the Multiemployer Pension Plan Financial Assistance Program Reduces Withdrawal Liability Exposure

Foley & Lardner LLP on

The distressed financial condition of many multiemployer pension plans has been well-chronicled. Some employers have direct exposure to multiemployer pension plans as a result of union contracts requiring employer...more

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