Regulations: Multiemployer plans lacking sufficient funds to pay full benefits

Multiemployer plans lacking funds to pay full benefits

The Treasury Department and IRS today released for publication in the Federal Register temporary regulations (T.D. 9723), and by cross-reference, proposed regulations (REG-102648-15) relating to multiemployer pension plans that are projected to have insufficient funds, at some point in the future, to pay the full benefits to which individuals will be entitled under the plans. These are referred to as plans in “critical and declining status.”


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The Multiemployer Pension Reform Act of 2014 amended the Internal Revenue Code to incorporate suspension of benefits provisions that permit these multiemployer plans to reduce pension benefits payable to participants and beneficiaries if certain conditions are satisfied.

Read the temporary regulations [PDF 268 KB] and proposed regulations [PDF 304 KB]

Rev. Proc. 2015-34

The IRS also today released an advance version of Rev. Proc. 2015-34, providing application procedures for approvals of benefit suspensions procedures for certain multiemployer defined benefit plans under section 432(e)(9).

Rev. Proc. 2015-34 [PDF 165 KB] describes procedures for a multiemployer defined benefit pension plan in critical and declining status to apply for approval of a proposed suspension of benefits under section 432(e)(9).

Rev. Proc. 2015-34 provides that the IRS and Treasury Department will accept applications beginning June 19, 2015. The revenue procedure is being issued in conjunction with temporary and proposed regulations providing guidance on benefit suspensions.

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