Multiemployer Plan Topics EA Meeting Session 406

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Multiemployer Plan TopicsEA Meeting Session 406

• Barry Slevin, Esq.
• James McKeogh, FSA, MAAA
• Larry Isaacs, FSA, MAAA, IRS

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Agenda

• Review of Court Cases and Regulatory Guidance
• Withdrawal Liability Its Baaaccckkkkk!
• Funding Relief from Congress
• Dealing with Looming Funding Deficiencies
• PBGC Annual Report

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Court Cases and Other Guidance

• Suspension of Benefits
• Settlor v. Fiduciary Issues
• Employee Contributions

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Withdrawal Liabilty

• Contribution Holidays
• Presumptive Method Presumes Data Maintained
• Funding Interest Rate or Blended Interest Rates
• Conflicts of Interest

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H.R. 3108

• Two Multiemployer Provisions
• Plan Funding Notices
• Amortization Hiatus

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Plan Funding Notices

• WHO -- Participants, Union(s), Employers
• WHAT -- Funded CL assets, benefits , and ratio
  of assets to benefits Rules about insolvency and
  potential benefit reductions and PBGC
  guarantees.
• WHEN two months after Form 5500 due (with
  extension) or earlier starting with 2005 plan
  year
• HOW - tbd

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Amortization Hiatus

• Can apply to 2 of 4 plan years beginning after
  6/30/2002 and before 7/1/2006.
• Plan can elect to begin 15-yr amortization in any
  of 3 succeeding years.
• In general, a freeze on benefit increases during
  hiatus period.
• Exceptions if CLgt75 OR increase fully funded
  within 3 years of hiatus period OR increase
  automatically results from bargained contribution
  increase

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Dealing with Approaching Deficiencies

• How do you spell relief?
• I-R-C-S-e-c-t-i-o-n-4-1-2-e
• Possible Trustee Deadlocks

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PBGC 2003 Annual Report
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Reconciliation(millions)
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Multiemployer Plan Liabilities
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Questions?