The Department of Treasury and the Pension Benefit Guaranty Corporation (PBGC) recently issued separate “requests for information” to aid in their development of regulations to implement the Multiemployer Pension Reform Act (MPRA) and AGC joined with other construction industry stakeholders to submit detailed comments toTreasury and PBGC on April 6, 2015.
The Treasury request regarded the suspension of benefits under MPRA. The detailed comments highlight that the benefit suspensions under MPRA are designed to address the pressing needs of plans in critical and declining status to act expeditiously to avoid insolvency while saving the maximum amount of benefits possible. AGC believes the intent of the statute is clear, but that the approval process should include a review of the decision‐making process in designing the benefit suspensions and not a full reconsideration of the judgment of the plan trustees and their advisors, who themselves are entrusted by law to adhere to their fiduciary and professional standards. AGC asked that Treasury provide guidance that clearly sets expectations for the applications while not creating unnecessary burdens on plan trustees that could delay necessary action. Once guidance has been issued, Treasury should take care to act to review and approve applications for benefit suspensions as quickly as possible.
The PBGC request regarded partitions of eligible multiemployer plans and facilitated mergers under the MPRA. The AGC comments reiterated the comments to Treasury that the reviews should be done expeditiously and that partitions and facilitated mergers will usually occur concurrently with benefit suspensions; for that reason, it is important for PBGC and Treasury to communicate actively with each other throughout the approval process.
AGC will continue to monitor the implementation of MPRA and comment when appropriate. AGC is also advocating for additional legislative reforms to the multiemployer system, including the creation of new plan designs which would further help stabilize the system while limiting employer liability and providing lifetime retirement security to plan participants.
For more information, please contact Jim Young at youngj@agc.org. Return to Top