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Section 4062(e) Developments

Section 4062(e) Developments

Section 4062(e): New law is enacted; moratorium ends

On December 16, 2014, President Obama signed into law H.R. 83, which made major changes to the provision of ERISA that created liability in certain situations where there was a reduction in active participants in a plan as a result of a cessation of operations (section 4062(e)).

With the new law in effect, PBGC will not continue the six-month moratorium on the enforcement of section 4062(e) that expired December 31, 2014.

The new law generally applies both to future cessations of operations and to those that have already occurred, except where a settlement agreement was entered into before June 1, 2014.

PBGC has outlined some of the major changes in the law and provided a point of contact for questions in "Important Changes to ERISA Section 4062(e)". Further guidance will be issued in the future.

Last updated October 11, 2018