Multiemployer Pension Reform Regulations Issued
The federal agencies tasked with administering the AGC-backed Multiemployer Pension Reform Act of 2014 (“MPRA”) recently issued multiple regulatory measures to implement the new law.
The Pension Benefit Guaranty Corporation (“PBGC”) has released an interim final rule prescribing the application and notice requirements for multiemployer pension plans seeking to take advantage of expanded partition opportunities under MPRA. The rule became effective upon its publication in the Federal Register on June 19.
On the same day, the Internal Revenue Service (“IRS”) issued temporary regulations and a proposed rule prescribing the application and notice requirements for plans that are deemed to be in “critical and declining status” and are seeking to suspend benefits in accordance with MPRA. The IRS also issued Revenue Procedure 2015-34, which details the application procedures and includes a model participant notice.
Also on that day, Treasury Secretary Jacob Lew appointed Kenneth Feinberg to serve as a Special Master to oversee the benefits suspension program.
AGC submitted comments to the IRS and PBGC on prior information requests about partitioning and benefit suspensions under MPRA, and will continue to monitor developments.
For more information, contact Jim Young at firstname.lastname@example.org or (202) 547-0133.
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