Employee Benefits Update (October 21, 2010)
PBGC Provides Guidance on Employer Liability Due to Substantial Cessation of Operations


The Pension Benefit Guaranty Corporation (PBGC) recently proposed a regulation pursuant to Section 4062(e) of the Employee Retirement Income Security Act of 1974 (ERISA) that could require sponsors of single-employer defined benefit pension plans to increase the plan’s funding if the employer ceases operations at a facility and more than 20 percent of participants are terminated as a result.  This proposed rule would result in a significant expansion of the reach of Section 4062(e) of ERISA.

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