The Pension Benefit Guaranty Corporation (PBGC) has issued final regulations that amend earlier agency guidance on the determination of withdrawal liability when a participating employer withdraws from a multiemployer (union) defined benefit pension plan. The regulations being amended are entitled, Allocating Unfunded Vested Benefits to Withdrawing Employers and Notice, Collection and Redetermination of Withdrawal Liability.
The amendments reflect certain statutory changes with respect to multiemployer plan withdrawal liability, including statutory changes in 2006 and 2014. They affect the determination of a withdrawing employer’s liability and annual withdrawal liability payment amount when the plan has had benefit reductions, benefit suspensions, surcharges, or contribution increases that must be disregarded. These amendments also provide simplified withdrawal liability calculation methods.