More retirement-related regulatory news for plan sponsors, including links to detailed information.
Proposed methods for computing withdrawal liability rule issued
The Pension Benefit Guaranty Corporation (PBGC) will publish a proposed rule that would implement statutory changes under the Multiemployer Pension Reform Act of 2014. The rule would affect the determination of a withdrawing employer’s liability under a multiemployer plan and annual withdrawal liability payment amount.
The proposed rule would provide simplified methods for determining withdrawal liability and annual payment amounts that a plan sponsor would be able to adopt to satisfy the statutory requirements that certain amounts associated with funding improvement/rehabilitation plans and benefit suspensions be disregarded.
To read the entire proposed rule, click here.
New GAO report on promote better retirement security
The U.S. retirement system has fundamentally changed since the 1970s, and several challenges have emerged, including:
• Baby boomers reaching retirement age, affecting Social Security’s finances
• Complexity of planning and managing funds in employer-sponsored retirement plans
• Growing debt and health care costs hindering individual savings
These challenges increase the risk that people will outlive their retirement savings and put added pressure on government programs. The Government Accountability Office’s report “A Comprehensive Re-evaluation Needed to Better Promote Future Retirement Security” examines (1) the fiscal risks and other challenges facing the U.S. retirement system, and (2) the need to re-evaluate our nation’s approach to financing retirement.
To read the report, click here.