ERISA-PBGC Issues Proposed Rules On Mergers and Transfers Between Multiemployer Plans

The Pension Benefit Guarantee Corporation (the “PBGC”) has now issued proposed rules on mergers and transfers between multiemployer plans. These proposed rules would amend the PBGC’s existing regulation on these mergers and transfers, to implement section 121 of the Multiemployer Pension Reform Act of 2014 (the “MPRA”). The proposed rules would also reorganize and update the existing regulation.

According to the Executive Summary in the Preamble to the proposed rules, section 121 of MPRA amends the existing rules under section 4231 of ERISA by adding a new section 4231(e), which clarifies PBGC’s authority to facilitate the merger of two or more multiemployer plans, if certain statutory requirements are met. For purposes of section 4231(e), “facilitation” may include training, technical assistance, mediation, communication with stakeholders, and support with related requests to other government agencies. In addition, subject to the requirements of section 4231(e)(2), the PBGC may provide financial assistance (within the meaning of section 4261 of ERISA) to facilitate a merger it determines is necessary to enable one or more of the plans involved to avoid or postpone insolvency. The proposed rules would provide guidance on the process for requesting a facilitated merger under section 4231(e) of ERISA, including a request for financial assistance under section 4231(e)(2).
 In addition, subject to the requirements of section 4231(e)(2), the PBGC may provide financial assistance (within the meaning of section 4261 of ERISA) to facilitate a merger it determines is necessary to enable one or more of the plans involved to avoid or postpone insolvency. The proposed rules would provide guidance on the process for requesting a facilitated merger under section 4231(e) of ERISA, including a request for financial assistance under section 4231(e)(2).
The proposed rules are here.
Posted in:
Updated:

Comments are closed.