January 7, 2016
On December 23, 2015, the Pension Benefit Guaranty Corporation (PBGC) issued its final rule on partition applications for multiemployer defined benefit pension plans under Section 4233 of the Employee Retirement Income Security Act, as revised by the Multiemployer Pension Reform Act of 2014 (MPRA). As was the case with the interim rule issued on June 19, 2015, the final rule addresses only the application process. It does not address how the PBGC will determine whether a particular partition application satisfies the applicable approval criteria.
The PBGC made several changes in response to comments on the interim rule, including giving itself a maximum period of 14 calendar days from the date an application is submitted to determine whether the application is complete (or not) and notify the plan sponsor accordingly. The PBGC’s 270-day substantive review period begins on the date a notice of completeness is issued.
In addition, the PBGC made certain changes of its own accord to the actuarial information required in a petition application, including how certain information must be presented.
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