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Under Federal pension law, if a multiemployer pension
plan is determined to be in critical or endangered status, the plan must
provide notice of this status to participants, beneficiaries, the bargaining
parties, the Pension Benefit Guaranty Corporation and the Department of Labor.
This requirement applies when a plan has funding or liquidity problems, or both,
as described in the Federal law. If a plan is in critical status, adjustable benefits may
be reduced and no lump sum distributions can be made. Pension plans in critical and endangered status are required
to adopt a plan aimed at restoring the financial health of the pension plan. |
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