Changing withdrawal liability allocation methods

[Guest HarveyC]

Can a plan that has used the presumptive method, say, elect at any time to adopt a new withdrawal liability allocation method such as the rolling 5 method, for example? This assumes the plan is not a construction industry plan.

[Guest Brian4]

Multiemployer plans can amend their withdrawal liability methods. As noted in the question, construction industry plans have special restrictions. Changes in withdrawal liability methods are subject to PBGC approval. Also, changes are made prospectively, as the plan cannot impose a higher liability on an employer due to a retroactive change. Notifications to employers and unions are required. The plan and trust documents should be reviewed to see if they have any restrictions or requirements for changing methods. See ERISA sections 4214 and 4220 and regulations.