PBGC proposes regulations implementing RPA participant notice requirements for underfunded plans

Article Abstract:

The US Pension Benefit Guaranty Corporation (PBGC) has issued proposed regulations interpreting the notice requirements for unfunded pension plans enacted in the Retirement Protection Act of 1994. The law generally requires that plan administrators give notice to beneficiaries and participants of a plan's unfunded status and of the limitations of PBGC protections. The PBGC regulations identify how such notice should be made in addition to noting exceptions for small plans and plans meeting deficit reduction contribution requirements.

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PBGC issues final rule on 1997 maximum guaranteeable benefit; proposes rule change on disclosure of premium-related information

Article Abstract:

The US Pension Benefit Guaranty Corporation's Benefits Payable in Terminated Single Employer Plans regulations have been amended to identify the maximum monthly benefits that can be paid on plans terminated in 1997. The benefit limitation formula established by section 4022(b) of ERISA results in a maximum monthly benefit of $2,761.36 per month for 1997. The amendments also provide for information filings by plan administrators detailing premium payment records.

Pension Fund Termination, Standards, Financial management, Information returns, United States. Pension Benefit Guaranty Corp.

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PBGC wins $120 million from company whose principal purpose for seling subsidiaries was evading underfunded pension liability

Article Abstract:

This article concerns a case decided by the U.S. District Court for the Western District of Pennsylvania where the court found that sham transactions were conducted by an employer for the purpose of evading pension liabilities. In Pension Benefit Guaranty Corp. v. White Consolidated Industries, the court applied subjective and objective tests to ultimately find the employer liable for $120 million in underfunded pension liabilities.

United States, Employee Benefits & Services, Liabilities (Accounting), Cases, Investigations, Human resource management, Employee benefits, Business sale

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