Critical and Endangered Status

The Pension Protection Act of 2006 added rules in section 432 of the Internal Revenue Code (IRC) and section 305 of Employee Retirement Income Security Act (ERISA) that apply to multiemployer pension plans that do not meet certain funded levels.  These rules, which provide for additional funding, reduction of benefits, and statutory surcharges, must be implemented by specified due dates.  Our work in this area includes:

• Assisting plan sponsors in interpreting and applying the rules that apply to plans in critical and endangered status.
• Determining whether benefits are "adjustable benefits" for plans in endangered status.