PBGC proposes simplified withdrawal liability calculations 

PBGC proposed regulations aim to simplify determining an employer’s withdrawal liability and annual withdrawal liability payments under a multiemployer pension plan. The proposal would provide guidance and simplified methods for a plan sponsor to disregard:

• Reductions and suspensions of nonforfeitable benefits when determining the plan’s unfunded vested benefits to calculate withdrawal liability
• Certain contribution increases when determining unfunded vested benefits allocated to an employer
• Certain contribution increases when determining an employer’s annual withdrawal liability payment

The proposal would reduce a multiemployer plan sponsor’s administrative burden to comply with changes made by the Multiemployer Pension Reform Act of 2014. Comments on the proposal are due April 8.

Related Resources

• Proposed Regulations: Methods for Computing Withdrawal Liability, Multiemployer Pension Reform Act of 2014 (Federal Register, Feb. 6, 2019)
• What’s New for Employers & Practitioners (PBGC, Feb. 6, 2019)
• Multiemployer Pension Reform Act of 2014 (PBGC, Nov. 30, 2017)