A multiemployer plan is going to be certified as critical and their trustees are not going to use the WRERA option to freeze their funding status. In other words, they are critical.

There is a host of secondary information that says any type of accelerated forms of benefit payments must be eliminated. One optional form of benefit offered by this group is a Social Security Level Income benefit. It pays a greater annuity prior to the retiree becoming eligible for Social Security. Once they become eligible, the benefit is reduced. The idea is to give the retiree a stable monthly benefit over the remainder of his life.

My reading of ERISA sections 305(f) and 204(G) leads me to believe this type of payment will NOT need to be eliminated. I think the trustees will have the option to cut it (like any other adjustable benefit) but I don't think it is required. The law seems to have carved out a narrow exception for this type of benefit.

Agree? Disagree?

The IRS makes a distinction between (a) social security level income options, and (b) social security supplements. For critical status plans, social security level income options should be eliminated for those who retire after the notice of critical status. Those who retired with a level income option before the notice of critical status would continue to receive their form of benefit. This was clarified in WRERA.