Benefit suspension consideration for multiemployer plan sponsors

Financial market volatility resulting from the coronavirus pandemic has caused more strain on multiemployer pension plans which may increase the number of plans eligible for benefit suspensions. Proposed legislation aiming to eliminate benefit suspensions and solvency issues surrounding the Pension Benefit Guaranty Corporation further complicate an already difficult decision-making process.

In this Multiemployer Review, actuaries Casey Baldwin and John Rowland provide an overview of the benefit suspension process under the Multiemployer Pension Reform Act of 2014. They also pose some questions that trustees and plan professionals must consider and share lessons learned from previous applications.

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