Pension Plan Funding
We help our clients understand and address the minimum funding rules under Internal Revenue Code sections 412, 430, and 436 (for single-employer defined benefit pension plans) and sections 412, 431, and 432 (for multiemployer defined benefit pension plans) and the parallel provisions under Employee Retirement Income Security Act (ERISA). This includes:
- Applying for minimum funding waiver.
- Negotiating funding waiver collateral with Pension Benefit Guaranty Corporation (PBGC).
- Applying for extension of amortization period (for multiemployer plans).
- Analyzing funding requirements and alternatives.
- Making non-cash contributions (employer stock and employer real property).
- Changing actuarial method and assumptions.
- Reducing or freezing benefits.
- Developing funding improvement plans and rehabilitation plans for multiemployer pension plans in endangered (yellow zone) or critical (red zone) status.