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LEGAL DISCLAIMER:
Information contained in this publication is not legal advice, and
should not be construed as legal advice. If you need legal advice upon which you can rely,
you should seek a legal opinion from your attorney.
Multiemployer pension plans that take advantage of this relief must pass certain
tests before any benefit increases
can be implemented. A plan amendment
increasing benefits generally may not go into effect during either of the two plan
years immediately following the election of the 30-year amortization period or 10-
year smoothing period unless:
the plan actuary certifies that –
any such increase is paid for out of additional contributions not allocated
to the plan immediately before the plan elected relief, and
the plan’s funded percentage and projected credit balances for those two
plan years are reasonably expected to be at least as high as such
percentage and balances would have been if the benefit increase had not
been adopted.
The Bill must now go back to the House for passage. Hopefully the House will pass
the Bill “as is” and allow this much pension relief to be signed into law. Otherwise,
if the House makes changes it must go back to the Senate again. We will monitor
the progress of the Bill in the House.
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