Overview
Included in the year-end continuing budget resolution was a thorough rewrite of section 4062(e) of ERISA, which allows the Pension Benefit Guaranty Corporation (PBGC) to collect advance payments of potential employer liability when a plant shutdown or similar event results in the discharge of a large percentage of plan participants. The PBGC's aggressive use of this provision in recent years drew criticism from the business community. The new version limits the circumstances under which "substantial cessation liability" can arise, simplifies the procedure for satisfying it and overrules the PBGC's interpretation of some statutory provisions.
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