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PBGC Blog: Retirement Matters

The Pension Benefit Guaranty Corporation has issued a request for information (RFI).  The RFI requests public feedback on proposed "two-pool" alternative withdrawal liability arrangements. 

When an employer partially or completely withdraws from a multiemployer pension plan, the employer may be required to pay withdrawal liability. These payments help cover the employer's share of unfunded benefit obligations that are left in the plan when the employer is gone. If unaddressed, those unfunded benefit obligations could have a negative effect on the plan's funding; that can increase the burden and risk to remaining employers, plan participants, and the multiemployer insurance program. 

PBGC has been studying recently proposed arrangements for how plans assess withdrawal liability. Under the law, plans must choose a means to assess withdrawal liability from among options set forth in the law and regulations or ask PBGC for permission to use an alternate method.  A number of plans have asked to use a "two pool" alternative method.    More...