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"The court agreed with PBGC that a terminated plan that remains terminated does not have a zone status and therefore cannot qualify for SFA as a critical and declining status plan.... In addition, PBGC asserted that it may terminate a multiemployer plan involuntarily to prevent the agency's potential long-run loss from increasing unreasonably, which the court in [this] case accepted." [Board of Trustees of the Bakery Drivers Local 550 and Industry Pension Fund v. PBGC, No. 23-1595 (E.D.N.Y. Oct. 26, 2023)]

8 pages. Topics include: [1] Pension Risk Transfer (PRT) Report update; [2] PBGC coverage with retro amendments; [3] Final premium filing deadline for terminating plans; [4] Technical Update 23-1; [5] Allocation of prior year contributions to spun-off plans; [6] Multiemployer plans: Benefit reductions and amount of SFA; Amounts eligible to be paid by SFA assets; and Lock-in application and census data. 

9 pages. Topics include: [1] Full yield curve; [2] SECURE 2.0 correction provisions; [3] JBEA rules; [4] Ways to streamline funding method changes for spinoffs; [5] Proposed mortality regulations; [6] Section 420 transfers; [7] Allocation of prior year contributions to plans involved in a spinoff.

157 pages. "The PBGC Single-Employer Program's financial status showed improvement and has been in a positive net financial position, which is projected to grow over the next 10 years. The PBGC Multiemployer Program improved during FY 2023 to a positive net position and is likely to remain solvent for more than 40 years.... As of the end of FY 2023, PBGC had received 135 SFA applications requesting a total of $71.0 billion in SFA and had approved 100 applications for $53.5 billion in SFA"

"Earlier this month, the [PBGC] Office of Inspector General (OIG) published a report disclosing that the PBGC overpaid the Central States fund by $127 million after the plan included 3,479 dead participants in its bailout request ... In a letter sent to [Teamsters President Sean O'Brien], Cassidy urged the Central States Pension Fund to fulfill their commitment to return the $127 million overpayment to American taxpayers and requested information as to how the union will prevent this kind of poor mismanagement in the future."

18 pages. "The major provisions of this regulatory action amend PBGC's regulations on: [1] Special Financial Assistance by PBGC to clarify the calculation methodology for the condition requiring a phased recognition of SFA in a plan's determination of withdrawal liability for plans that receive SFA; and [2] Termination of Multiemployer Plans to update the reference to the dollar limit for lump-sum distributions in the closeout of sufficient multiemployer plans. In addition, this regulatory action makes other clarifications, corrections, and updates."

29 pages. "These updates include changes to the application instructions requiring the submission of census data in all participant categories ... PBGC has clarified the information that must be provided with the plan's certification of the amount of the fair market value of assets, ... updated the model plan amendment regarding compliance ... and clarified an example on the change of assumptions regarding CBUs.... [O]ther updates are reflected in the ... SFA Assumptions Guidance and Model Amendment Under 4262.6(e)(1) Regarding Compliance."

16 pages. "[OIG] found 3,479 deceased participants in Central States' (Plan) SFA application because the [PBGC] did not ensure deceased participants were removed from the Plan's application.... Based on [OIG's] identification of deceased participants, Central States calculated the value attributed to deceased participants in the SFA application at approximately $127 million."

"The plan, based in New York City, New York, covers 3,887 participants in the transportation industry ... [and] will receive approximately $49.3 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2026."

"Despite ERISA's statutory language, no court has found that ownership alone is sufficient to result in liability. In order to collect, plaintiffs must either establish jurisdiction in a United States court or convince a foreign court to apply ERISA. In both situations, collecting from foreign entities is an uphill battle. The difficulties are illustrated by ... a recent decision in which a U.S. federal court refused to entertain a suit by a multiemployer plan to collect withdrawal liability from a foreign entity." [Holland v. Cardem Ins. Co, Ltd, No. 19-02362 (D.D.C. Sep. 11, 2023)]

"The following practices may lead to violations under the DBRA, resulting in failure to pay the applicable prevailing wage rate ... [1] Misclassifying laborers and mechanics for the type of work performed; [2] Failing to obtain prior approval from the [DOL] for unfunded fringe benefit plans; [3] Failing to annualize (or incorrectly annualizing) the hourly equivalent of fringe benefit amounts ... [4] Paying hourly rates and/or fringe benefit amounts pursuant to a Collective Bargaining Agreement (CBA), where the CBA specifies rates lower than those required in the applicable wage determination; and [5] Improperly taking credit towards fringe benefit obligations for certain expenses"

"[PBGC] has approved the application submitted to the Special Financial Assistance Program by the Paper Handlers-Publishers Pension Plan. The plan, based in New York City, New York, covers 244 participants in the printing industry [and] will receive approximately $20.6 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2024."

"The landscape of pension plans for labor unions and their members is evolving, with many multiemployer pension plans contemplating a shift from traditional defined benefit pension plans to variable annuity pension plans (VAPPs). This transition carries both potential benefits and challenges, and it is imperative for trustees representing labor unions and their members to be well-informed and proactive in their decision-making process."

"In addition to demanding full restoration of the DB pension plan for workers hired post-2007, the union is asking for a significant increase to current retiree pensions, as well as retiree health care coverage ... The automakers have said that agreeing to the pension restoration would likely bankrupt the companies[.]"

"[PBGC] has approved the application submitted to the Special Financial Assistance (SFA) Program by the Plasterers and Cement Masons Local No. 94 Pension Fund. The plan, based in Camp Hill, Pennsylvania, covers 108 participants in the construction industry. On May 1, 2019, the [Plan] implemented a benefit suspension under [MPRA] and was partitioned into two plans.... PBGC's approval ... rescinds the partition and enables the plan to restore all benefits suspended under the terms of MPRA[.]"

"[PBGC] has approved the application submitted ... by the Local Union No. 863 I.B. of T. Pension Plan. The plan, based in Mountainside, New Jersey, covers 2,487 participants in the transportation industry ... [and] will receive approximately $334 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2024."

"The proposed rule provides a more timely process to keep up with changes in interest rates, modernize the mortality basis and simplify expense assumptions. Because these assumptions are incorporated by reference in other PBGC regulations, the changes also affect certain multiemployer withdrawal liability calculations, calculations under the PBGC missing participant program and annual financial and actuarial information reporting requirements for single-employer plan sponsors under ERISA Section 4010."

"[PBGC] has approved the application submitted ... by the Ironworkers Local Union No. 16 Pension Plan. The plan, based in Baltimore, Maryland, covers 996 participants in the construction industry. On October 1, 2018, the [Plan] implemented a [MPRA] benefit suspension ... [and] reduced benefits of about 680 plan participants.... The plan will receive $75.8 million in SFA[.]"

"[PBGC] has approved the application submitted ... by the New Bedford Fishermen's Pension Fund. The plan, based in New Bedford, Massachusetts, covers 445 participants in the fishing industry ... [and] will receive approximately $13.4 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2024."

"[PBGC] has approved the application submitted ... by the Pension Plan for Employees of United Furniture Workers of America and Related Organizations. The plan, based in Nashville, Tennessee, covers 95 participants in the manufacturing industry ... [and] will receive approximately $8.1 million in special financial assistance. The plan was projected to become insolvent and run out of money in 2023."

"[PBGC] has approved the application submitted ... by the Local 917 Pension Plan. The plan, based in Floral Park, New York, covers 1,653 participants in the transportation industry ... [and] will receive approximately $22.1 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2025."

"[PBGC] has approved the application submitted ... by the Southern California, Arizona, Colorado and Southern Nevada Glaziers, Architectural Metal and Glass Workers Pension Plan. The plan, based in Covina, California, covers 3,606 participants in the construction industry ... [and] became insolvent in January 2009[.]"

"The General Accountability Office (GAO) has determined that the PBGC did not violate its appropriations authority when adopting two interest rates for projecting the amount of multiemployer DB relief in the form of special financial assistance (SFA) needed. The GAO's narrow decision on appropriations law was in response to a query from the PBGC's Inspector General whether the PBGC's final rule approach raised issues under the Antideficiency Act."

"[PBGC] has approved the application submitted ... by the Retirement Plan of the Retirement Fund of Local 305 CIO's Pension Fund. The plan, based in Mineola, New York, covers 918 participants in the service industry ... [and] will receive approximately $36.3 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2024."

"[PBGC] has approved the application submitted ... by the Southwest Ohio Regional Council of Carpenters Pension Plan. The plan, based in Monroe, Ohio, covers 5,399 participants in the construction industry.... PBGC's approval of the SFA application enables the plan to restore benefits suspended under the terms of MPRA ... The plan will receive $182.6 million in SFA[.]"