Buck Consultants Evaluates PBGC Coverage of Shutdown Benefits

In “Slim chance for PBGC coverage of shutdown benefits under final rule”, Buck Consultants explains that:

“Final PBGC regulations tightly limit the shutdown and other ‘unpredictable contingent event benefits’ that are eligible for PBGC’s guarantees when a single-employer plan undergoes a distress or involuntary termination. The regulations implement a PPA provision, effective for events that occur after July 26, 2005, that sets the date the event triggering the benefit occurs as the earliest date the phase-in period can begin for these types of benefits. Plan administrators have a responsibility to reflect this change when paying benefits beginning on a plan’s proposed termination date.”

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