Terminated and Insolvent Multiemployer Plans and Duties of Plan Sponsors final rule explained

On May 2, the Pension Benefit Guaranty Corporation (PBGC) issued a final rule on Terminated and Insolvent Plans and Duties of Plan Sponsors. The final rule addresses reporting and disclosure requirements for plan sponsors of certain terminated and/or insolvent multiemployer pension plans.

The new rule is generally effective July 1, 2019, and covers withdrawal liability information and revised notice requirements for plans expected to be insolvent.

The PBGC issued the final rule to improve its monitoring of the agency’s obligations under the multiemployer insurance program while reducing the administrative burden for sponsors of some insolvent and/or terminated plans.

In this article, Milliman actuaries Yutaro Seki and Michael Sudduth summarize the information regarding the PBGC’s new rule.

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