Pension & Benefits News PBGC approves multiemployer plan's amendment providing for special withdrawal liability rules
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Friday, February 15, 2019

PBGC approves multiemployer plan's amendment providing for special withdrawal liability rules

By Pension and Benefits Editorial Staff

The Pension Benefit Guaranty Corporation (PBGC) has approved a request from a multiemployer plan, the United Food and Commercial Workers International Union—Industry Pension Fund, for approval of a plan amendment providing for special withdrawal liability rules. Under ERISA Sec. 4203(f) and the PBGC's Extension of Special Withdrawal Liability Rules, a multiemployer pension plan may, with PBGC approval, be amended to provide for special withdrawal liability rules similar to those that apply to the construction and entertainment industries.

The United Food and Commercial Workers International Union—Industry Pension Fund covers unionized employees who predominately work in the retail food industry. The proposed amendment is intended to apply to cessations of the obligation to contribute that have already occurred and will create special withdrawal liability rules for employers contributing to the Plan for work performed under a contract or subcontract for services to federal government agencies.

The PBGC has determined, based on the plan's submissions and the representations and statements made in connection with the request for approval, that the requested plan amendment will apply to an industry that has characteristics that would make the use of the special withdrawal liability rules appropriate, and will not pose a significant risk to the insurance system. The plan is in a strong funded position and the employer contribution base is secure. Therefore, the PBGC has granted the plan's request for approval of the plan amendment.

SOURCE: 83 FR 65369.

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