PBGC Issues Proposed Regs on Mergers and Transfers Between Multiemployer Plans
"[T]he proposed regulations ...  Allow plan sponsors to engage in informal consultations with the PBGC to discuss proposed mergers and transfers....  Amend and reorder the plan solvency tests used to demonstrate that a merger or transfer would not cause the benefits of participants and beneficiaries to be subject to suspension ...  Extend the deadline for providing notice of a proposed facilitated merger from 120 days to 270 days before the proposed effective date of a facilitated merger."
(Practical Law Company)
Correction Program Options for Retirement Plan Errors
"If the error can be deemed to be insignificant, it is eligible for self-correction at any time [if certain conditions are met.] ... The correction of significant errors not corrected by the last day of the second year after the error is made, correction methods that are not pre-approved by the EPCRS program, and errors not eligible for self-correction (such as loan violations) should be submitted for approval through a VCP application."
(Belfint Lyons & Shuman, CPAs)
Why SIFMA and Co.'s Trip to a Friendly North Texas Court to Upend the DOL Rule Looks More Like Its Alamo
"The lawsuit suit offers a three-pronged argument for quashing the rule: First, that it would allow investors to file class-action lawsuits dealing with individual retirement accounts ... Next, that it will hurt retirement savers and 'small businesses, and tens of thousands of businesses ... that provide retirement advice, products, and services.' ... Finally, it contends that the rule stretches the term 'fiduciary' until it is unrecognizable.... Fiduciary advocates have two words for the plaintiffs: Nice try."
Central States' Strategy: Litigate Less, Recoup More?
"Once described by the U.S. Court of Appeals for the Seventh Circuit as a 'uniquely aggressive seeker of withdrawal payments,' the fund filed 52 lawsuits in 2011 seeking withdrawal liability payments. By 2015, this dropped 35 percent, to 34.... Despite the decline in lawsuits, Central States has seen the actual dollar amount of withdrawal liability collected increase from $171 million in 2011 to $548 million in 2015 ... [One] significant factor ... is that in October 2011, the [PBGC] granted Central States' application for approval of a new alternative method of determining withdrawal liability -- the 'hybrid' method."
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BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2016 BenefitsLink.com, Inc. All materials
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