By Pension and Benefits Editorial Staff
The Department of the Treasury has released a letter to the Board of Trustees of the Ironworkers Local 16 Pension Fund, stating that the fund is eligible to reduce benefits under the plan pursuant to the Multiemployer Pension Reform Act of 2014 (MPRA). The Treasury Department further states that the application satisfies the requirements of Code Sec. 432(e)(9)(C), (D), (E), and (F).
However, this is not a final authorization to implement the benefit suspension. Under Code Sec. 432(e)(9)(H), there must be a vote by the plan participants concerning the proposed benefit suspension before any suspension can take effect. The Treasury Department, in consultation with the Department of Labor and the Pension Benefit Guaranty Corporation, is required to, and will, administer the voting by participants and beneficiaries of the fund.
Source: Treasury Department letter, August,2018.
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