By Brian Croce
Source: Pensions & Investments
The Pension Benefit Guaranty Corp. has proposed a rule to provide interest rate assumptions for determining a withdrawing employer’s liability to a multiemployer plan.
An employer that withdraws from an underfunded multiemployer plan may owe withdrawal liability to the plan under the Employee Retirement Income Security Act of 1974. The amount owed represents the withdrawn employer’s share of the amount by which the present value of the plan’s non-forfeitable benefits exceed the value of the plan’s assets, according to the PBGC. The plan actuary determines the present value of the plan’s non-forfeitable benefits using actuarial assumptions and methods.