By Pension and Benefits Editorial Staff
The Pension Benefit Guaranty Corporation (PBGC) has posted a clarification to the preamble for final regulations implementing its authority to facilitate mergers of multiemployer pension plans. In a second example of how a plan can demonstrate that financial assistance is necessary to mitigate the adverse effects of the merger on the merged plan’s ability to remain solvent (see 83 FR 46642, September 14, 2018, at page 46647 column 3), the PBGC is changing a percentage. This example in the preamble states that, “while not a threshold, a possible demonstration may be based on stochastic modeling showing that the merged plan’s probability of insolvency within 30 years of the merger exceeds 65% without the requested financial assistance.” The percentage in this example should be 35% (not 65%).
SOURCE: PBGC: What’s New for Employers & Practitioners.
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