Buck Consultants Analyzes PBGC’s Proposed Regulations on Rollovers

In “PBGC proposes additional guarantee for rollover benefits”, Buck Consultants explains that:

“In a move aimed at encouraging plan sponsors to offer lifetime annuity benefits using funds accumulated in defined contribution plans, PBGC has proposed changes to its single-employer regulations on benefit guarantees to increase an individual’s maximum guarantee by the amount of pension generated by rollover contributions to a plan… Following IRS’ lead in Revenue Ruling 2012-04, PBGC proposes to amend their regulations for plans that terminate underfunded to provide that benefits from rollover amounts would be treated as an accrued benefit derived from mandatory employee contributions in priority category 2.”

ERIC members and trial members can read more about the PBGC’s proposed rules here.
To read more from Buck Consultants, click here.
For the PBGC’s proposed regulation, click here.