PBGC proposed rule providing guidance on the PPA provision on application of PBGC guaranteed benefit rules in the case of the bankruptcy filing by a sponsor of a underfunded defined benefit plan.
Document Excerpt
This is a proposed rule to implement section 404 of the Pension Protection Act of 2006. Section 404 amended Title IV of ERISA to provide that when an underfunded, PBGC-covered, single-employer pension plan terminates while its contributing sponsor is in bankruptcy, sections 4022 and 4044(a)(3) of ERISA are to be applied by treating the date the sponsor’s bankruptcy petition was filed as the termination date of the plan.
Link http://www.pbgc.gov/docs/E8-14813.pdf
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