Pension Legislation Reform Signed Into Law
On December 16, 2014, the Multiemployer Pension Reform Act of 2014 was signed into law as an amendment to the omnibus government funding bill. Key points of the Act include:
- The sunset provision of Pension Protection Act of 2006 is repealed. PPA will not sunset at the end of 2014.
- Plans that are projected to move into the Red Zone within any of the next five years may elect for their plan to go into the Red Zone early.
- Allows deeply troubled plans to reduce benefits for retirees incrementally to the extent necessary to avoid insolvency. The workers must vote on plan to reduce benefits.
- Expands required disclosures regarding multiemployer plan information.
- New rules on mergers and partitions.
- PBGC premiums increase from $13 to $26 per participant.
- For determining withdrawal liability, surcharges and increases in contribution rates due to funding improvement plans or rehabilitation plans are excluded from calculations.
The Act is effective for plan years beginning after December 31, 2014.
For more information about the Multiemployer Pension Reform Act of 2014, please contact your Trust Fund counsel.
By Linda Baldwin Jones | February 2, 2015