Overview
Bloomberg BNA’s Pension and Benefit Report quoted Tom Veal on February 24. The article discusses the Pension Benefit Guaranty Corporation’s (PBGC) request for public input on implementing recent changes to the multiemployer pension plan law that expands its ability to order plan partitions and facilitate plan mergers.
Mr. Veal tells Bloomberg BNA, “At this point it’s not clear how useful partitions and facilitated mergers will be to troubled plans or the PBGC.” Mr. Veal also explains: “The prior type of partition, which separated a bankrupt employer’s participants from the rest of the plan, had potential but was hardly ever utilized in practice. The new type is essentially accelerated financial assistance, as the partition is little more than legal fiction. The attraction for plans is obvious, but will the PBGC be able to save money in the long run by paying more in the short run?”
The full article can be read at Bloomberg BNA (subscription required).