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...
PBGC will pay retirement benefits for more than 900 current and future retirees of Vertellus Specialties Inc., a manufacturer of specialty chemicals based in Indianapolis, Ind.
The company sponsors the Vertellus Specialties Inc. Defined Benefit Retirement Plan.
PBGC is stepping in because Vertellus and 10 affiliates intend to sell the majority of their assets in bankruptcy proceedings and the potential buyer will not continue the pension plan. More...
"It's an honor for me to become PBGC's next Director. I've spent most of my professional life helping employers start and maintain retirement plans. I appreciate the faith the Administration and the Senate have shown in nominating and confirming me and I'm looking forward to getting started."
On June 29, President Obama signed legislation to extend the Health Coverage Tax Credit (HCTC) through Dec. 31, 2019. The law was enacted as part of the Trade Preferences Extension Act of 2015, Pub. L. 114-27. The HCTC previously expired Dec. 31, 2013.
The IRS will manage the program again, and when new guidelines are ready, we'll let PBGC participants know how to apply for the tax credit. You'll find the information here, on Retirement Matters, and on PBGC.gov.
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