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Posted

Consider the collective bargaining process. If the union agrees to freeze a plan, it does not happen until the agreement is ratified. But then according to the union, the plan is frozen as of the contract date.

The CBA is distributed to the union members with the freeze in it.

The question is, does the CBA count as a 204(h) notice?

The PBGC thinks not, I think does.

Posted

Although I have not seen many freezes, I have never seen one that was noticed via a CBA. In fact I have never seen any plan of any sort that noticed anything via a CBA.

The CBA usually has a time frame that would not work. A freeze or change quite often is accepted by the Union through a Memorandum of Understanding so as not to have to go back to the formal bargaining table etc. and then reprint the CBA

In any case I cannot see the CBA as being the proper medium since it is not from the Plan or Plan Sponsor.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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