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Guest jhengle

Reduction of Lump Sum benefits

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Guest jhengle

Company A was merged with company B. Company A's lump sum benefits were reduced because company B used Gatt rates and company A used PBGC rates. Weren't the employees dismissed after the merger entitled to lump sum under PBGC. Where can we find legal interpretation concerning this?

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The merger of the companies is not relevant. Were the plans merged or amended? If the plans were merged or amended, the change to GATT rates could be effective as early as the date the merger or amendment was signed. Certain grandfather rules could apply even if the plans were merged or amended; e.g., if the date the applicable GATT rate is determined is more than two months from the date the applicable PBGC rate would have been determined or if the plan provided for interest rates in addition to the PBGC rate.

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