PBGC Proposes New Withdrawal Liability Rules | Mercer

PBGC Proposes Simplified Withdrawal Liability Calculations

Our Thinking / Law and Policy Group /

PBGC Proposes Simplified Withdrawal Liability Calculations
PBGC Proposes Simplified Withdrawal Liability Calculations
Calendar12 February 2019

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.

  Speak with a Mercer Consultant
Provide your contact information to get in touch
*Required Fields