The Multiemployer Pension Reform Act of 2014 gave authority to the most poorly funded plans to reduce promised benefits to retirees. Now, the IRS is asking for help in writing the rules that will make those reductions possible.
"Critical and declining" plans, a new designation created by the law, face imminent insolvency — foreseeable within the next 14 plan years. Theoretically, suspending some benefits will save those plans. But if the IRS's request for comment is any indication of the task ahead for regulators, trustees and affected participants, doing so will be easier said than done.
For starters, the IRS would like to know how a plan determines it is in critical and declining status.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
