The Pension Benefit Guaranty Corporation (PBGC) recently
announced a moratorium on the enforcement of 4062(e) cases until the end of
2014. Under ERISA section 4062(e) cases refer to situations where a company
ceases operations at a facility through a shut down or sale and 20 percent of
workers in a pension plan lose their jobs. In a recent press release, the ERISA
Industry Committee (ERIC) indicates that it appreciates the steps taken by the
PBGC to impose a six-month moratorium on the enforcement of section 4062(e)
cases, and for listening to the genuine concerns of plan sponsors and the
business community. ERIC previously criticized the approach taken by the agency
in proposed regulations that would have expanded the application of section
4062(e) to routine events that are far less significant than ceasing operations
at a facility in any location.
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