March 31, 2016

Treasury Hearing on Proposed Regulation of MPRA’s Special Ordering Rule for Benefit Suspensions

On March 22, 2016, the Department of the Treasury (Treasury) held a hearing on its proposed regulation interpreting one section of the suspension rules added by the Multiemployer Pension Reform Act of 2014 (MPRA).

The section provides a special rule for allocating the suspension when the plan:

  • Includes participants with benefits attributable to an employer that had withdrawn from the plan,
  • Paid full withdrawal liability, and
  • Pursuant to a collective bargaining agreement, agreed to assume liability under a separate single-employer plan for any participants who did not get full benefits.

The only person who requested to speak at the hearing appeared on behalf of United Parcel Service (UPS) (which he described as the only employer affected by the rule) and his comments were in the context of the suspension application submitted by the Central States Pension Fund, currently under review by the Treasury.

To learn more, read Segal’s recent Hot Topic on the Treasury’s proposed regulation. 

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Serena Simons

Serena Simons

SVP, National Retirement Compliance Practice Leader