Under PBGC’s current benefit payments regulation, a benefit is guaranteed only if the participant satisfies the conditions for entitlement to the benefit on or before the plan’s termination date. The PBGC has issued a proposed amendment that would make it clear that so long as a service member subject to USERRA is reemployed within the time required under USERRA, the service member would be treated as having satsifed the reemployment condition as of the termination date even if the reemployment actually occurs after the plan’s termination date.
Document Excerpt
Proposed rule on USERRA Benefits Under Title IV: On July 29, 2009, PBGC published in the Federal Register a proposed rule that would amend PBGC’s benefit payments regulation to implement provisions of The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). USERRA provides that an individual who leaves a job to serve in the uniformed services is generally entitled to reemployment by the previous employer and, upon reemployment, to receive credit for benefits, including employee pension plan benefits, that would have accrued but for the employee’s absence due to the military service. Comments on the proposed rule must be submitted by September 28, 2009.
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