Guidance Document Database

Provides guidelines for changes to certain assumptions that multiemployer plans may use for purposes of determining eligibility for special financial assistance (SFA) and the amount of SFA.

Initial determination that notice of intent to terminate not valid where not issued by plan administrator, where company argued it was de facto plan administrator but plan clearly identified board to be created as plan administrator.

States the conditions that must be met for the sale of assets exception to withdrawal liability to apply; buyer did not comply with the bond/escrow and sale contract requirements.

Plan is not an Individual account plan because it does not provide for individual accounts for each participant. Plan is covered under Title IV.

A letter of credit can satisfy the bond or escrow requirement of the trucking industry exemption from withdrawal liability.

Implementation guidelines do not generally apply to a transfer of assets from a single-employer plan to a multiemployer plan, followed by the termination of the single-employer plan, but because plan termination is a prerequisite to a reversion of plan assets to an employer, PBGC will not recognize a plan termination when it is intended as a means to recover surplus plan assets without satisfying termination requirements.

A proposal to allocate post termination gains in plan assets to increase a participant’s benefits is not permissible.

PBGC examines financial information of an employer and all trades or businesses under the same common control to assess the employer’s hardship or necessity for deferred payments to meet liability.

Addresses whether foreign entities that are part of a controlled group are jointly liable for withdrawal liability.

Employees that are eligible for retirement but continue to work for a new employer after a company purchases it are not treated as retirees.

Whether an employer that purchased a division of another company and rehired its employees would be treated as a successor corporation and assume liability for existing plans.

Licensed veterinarians are “licensed practitioners of the healing arts” for purposes of the Professional Service Employer plan exemption.

Profit sharing plan is an Individual account plan which is exempt from coverage under Title IV.

Validity of demand for withdrawal liability is subject to arbitration.

Plan maintained by a Council created by a state statute meets the Governmental plan coverage exemption.

A retirement arrangement is not covered plan under Title IV because it is not tax qualified.

Addresses interest factors applicable to withdrawal liability installments paid other than quarterly.  Corrected by Opinion Letter 85-18.

PBGC’s position on guaranty of death benefit.

Funds contributed to a plan whether paid directly by the local union maintaining it or indirectly through deductions from membership dues are employer contributions and the plan is covered under Title IV

Addresses the special rules governing a transfer between multiemployer plans where an employer withdraws from a plan because the union bargaining with that employer has been changed as a result of the certification of a different union.

Addresses whether a contributing employer to a multiemployer plan withdraws by subcontracting out its work to another contributing employer such that contributions are unaffected.

Church plan status is determined by the IRS, must get an IRS ruling on church plan status.

Discusses considerations PBGC would apply in determining whether parent-subsidiary group created a single plan or multiple separate plans managed under a single trust.

A plan with a participant who is the sole stockholder meets the Substantial Owner exemption from plan coverage under Title IV.

Discusses successor plan requirements.