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Amendment under ERISA Section 4281


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My client is a multiemployer pension plan that has terminated in a mass withdrawal.  It is projected to become insolvent and run out of funds in the next plan year. Its only sources of funds are two employers who made complete withdrawals and are making installment payments of withdrawal liability. As you likely know, in that situation, the plan has to be amended to eliminate benefits in excess of the greater of the amount of the plan's assets or the extent of the PBGC's guarantee. See ERISA Section 4281(c). In addition, to the extent that benefit payments under the insolvent plan exceed the resource benefit level (i.e., the difference between the plan's level of benefits and the plan's assets, but no less than the PBGC guarantee), any benefits above the PBGC guarantee shall be suspended. To me, there may be little or no difference between the level at which benefits have to be eliminated versus the level at which benefits have to be suspended. Has anyone seen a sample amendment to reduce/suspend benefit levels of the type described here? If so, could you please supply me with a copy?

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