LIBERTYKID Posted January 19, 2012 Share Posted January 19, 2012 Can the default schedule in a rehabilitation plan include reduction of "adjustable benefits". It is clear that the reduction of adjustable benefits can be provided in a negotiated schedule, but I am not sure about such reductions being in the default schedule. Link to comment Share on other sites More sharing options...
Guest pk1 Posted August 1, 2012 Share Posted August 1, 2012 Can the default schedule in a rehabilitation plan include reduction of "adjustable benefits". It is clear that the reduction of adjustable benefits can be provided in a negotiated schedule, but I am not sure about such reductions being in the default schedule. I was just looking for the same issue and saw your post. We were told by IRS representatives a few years ago that although there may be disagreement in the legal community on this issue, the IRS is firm that a default plan may not include reduction of adjustable benefits. Have you found any further guidance since your post? Link to comment Share on other sites More sharing options...
LIBERTYKID Posted August 1, 2012 Author Share Posted August 1, 2012 No. I have not found any additional information. Link to comment Share on other sites More sharing options...
Brian Haynes Posted September 12, 2012 Share Posted September 12, 2012 I would agree that a default schedule may not reduce adjustable benefits. The PPA seems pretty clear to me on that. The only exception may be when the Fund Trustees have determined that based on all available reasonable measures the Fund cannot move out of critical status in the required 10 or 13 year period so that they are merely forestalling insolvency. When that occurs, the default and alternate schedules are usually quite different than in the normal course. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now