PBGC Moratorium on Enforcement of 4062(e) Ends
The PBGC has announced that it will not continue its moratorium on enforcing ERISA section 4062(e) events. This announcement comes following the changes to section 4062(e) that were made under the Multiemployer Pension Reform Act of 2014 (MPRA). Previously, section 4062(e) liability could be imposed on single employer pension plan sponsors where a cessation of operations at a facility resulted in more than 20% of the employees covered by the plan losing their jobs. As discussed in a prior alert, MPRA significantly revised section 4062(e). In particular, section 4062(e) now imposes liability only where (1) the shutdown is permanent and (2) more than 15% of the total number of all employees of the plan sponsor who are eligible to participate in any pension plan (including a 401(k) plan) maintained by the employer are terminated from employment. We previously discussed the PBGC’s moratorium here.