Time & Attendance
Prevent Call Outs
Implementation & Launch
By Staff Report
Jun. 15, 2011
Final rules adopted by the Pension Benefit Guaranty Corp. will deny PBGC guarantees for benefits earned after an employer files for bankruptcy and before the agency takes over the plan.
Under the rules, published in the June 14 Federal Register, a participant’s guaranteed benefit would be based on service and compensation, if applicable, as of the date the plan sponsor filed for bankruptcy.
The rules implement provisions in the Pension Protection Act of 2006 that are designed to reduce the agency’s exposure to losses.
As a result, if an employer filed for bankruptcy and continued its plan after bankruptcy, with the PBGC later taking over the plan, benefits earned by participants while the employer was in bankruptcy would not be guaranteed by the agency. PBGC benefit guarantees would be tied to the date of the bankruptcy filing, not the date of plan termination.
Additionally, only benefits that are non-forfeitable as of the bankruptcy filing date would be guaranteed. For example, early retirement subsidies to which a plan participant became entitled after a bankruptcy filing date would not be guaranteed.
In fiscal 2010, the PBGC reported a near-record $23 billion deficit, up from a $22 billion deficit in fiscal 2009.
Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail email@example.com.
Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.
Schedule, engage, and pay your staff in one system with Workforce.com.
federal law, minimum wage, pay rates, state law, wage law compliance
Staffing Management4 proven steps for tackling employee absenteeism
absence management, Employee scheduling software, predictive scheduling, shift bid, shift swapping
Time and Attendance8 ways to reduce overtime and labor costs
labor costs, overtime, scheduling, time tracking, work hours
Don't miss out on the latest tactics and insights at the forefront of HR.