The Pension Benefit Guaranty Corporation (PBGC) is extending until Dec. 13 the comment period for a proposed rule that would provide interest rate assumptions that may be used by a plan actuary in determining a withdrawing employer’s liability to a multiemployer plan.
It was published in the Federal Register on Oct. 14, 2022, with a 30-day public comment period. In response to public comments it received, the PBGC is extending the comment period for the proposed rule to a total of 60 days from the date of publication. It announced the extension in the Federal Register of Nov. 10, 2022.
The proposed regulation would provide interest rate assumptions in determining a withdrawing employer’s liability to a multiemployer pension plan.
The proposed rule:
- clarifies that it is reasonable to base the interest assumption used to calculate an employer’s withdrawal liability on the market price of purchasing annuities from private insurers, such as by use of settlement interest rates prescribed by the PBGC under Section 4044 of ERISA.
- would specifically permit the use of Section 4044 rates either as a standalone assumption or combined with funding interest rate assumptions, to determine withdrawal liability.
Making Comments
Comments may be submitted in the following ways:
- Through the federal eRulemaking Portal at https://www.regulations.gov.
- By E-mail to [email protected] with subject line “4213 proposed rule.”
- By mail or hand delivery to: Regulatory Affairs Division, Office of the General Counsel, Pension Benefit Guaranty Corporation, 445 12th Street SW, Washington, DC 20024-2101.
All submissions received must include the agency’s name (Pension Benefit Guaranty Corporation, or PBGC) and refer to the 4213 proposed rule.
Comments must be received by Dec. 13, 2022.
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