Rehab Plan - automatic imposition

[Guest JMN]

In determining when a rehab plan default schedule may be involuntarily imposed, do we disregard extensions of the CBA after the plan has entered into critical status? I believe the reference in 432 is to the natural expiration date.

[mal]

Wouldn't it be nice if we could get some regulations directed at multiemployer plans?

I would agree with you on the extension. The extension process could be viewed as an end-run around the intent of the PPA/WRERA.

[Guest JMN]

Wouldn't it be nice if we could get some regulations directed at multiemployer plans?

I would agree with you on the extension. The extension process could be viewed as an end-run around the intent of the PPA/WRERA.

That's what I thought - the parties could simply circumvent the default rules by extending after learning about the critical status. What's unclear to me is whether an extension that's ratified before the plan enters into critical status would be respected. I don't think so, but the IRS usually spells this out in its regulations.