By Pension and Benefits Editorial Staff
The Department of the Treasury has determined that the Sheet Metal Workers Local Pension Fund is eligible to reduce benefits under Multiemployer Pension Reform Act of 2014 (MPRA) and that the application submitted by the Fund’s Board of Trustees satisfies the requirements of Code Sec. 432(e)(9)(C), (D), (E), and (F), as added by MPRA.
The Treasury Department states, however, that this is not a final authorization to implement the benefit reduction described in the Fund’s application. No reduction of benefits can take effect before a vote of the participants and beneficiaries of the Fund on the proposed reduction under Code Sec. 432(e)(9)(H). MPRA requires that the Treasury Department, in consultation with the Department of Labor and the Pension Benefit Guaranty Corporation, to administer this vote. Accordingly, the Treasury Department, in consultation with DOL and PBGC, will administer a vote of the participants and beneficiaries of the Fund. If the Board of Trustees does not satisfy its responsibilities concerning the vote, it may not receive the final authorization for the implementation of the proposed reduction, the Treasury Department warns.
Source: Treasury Department letter.
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