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February 25, 2005 at 07:00 PM
NU Online News Service, Feb. 25, 2005, 4:08 p.m. EST
The federal pension insurance agency wants to standardize the rules that apply when an employer shuts down a large facility.[@@]
The agency, the Pension Benefit Guaranty Corp., requires companies that leave multi-employer pension plans to contributes extra cash to the PBGC to protect the PBGC against the possibility that the departing employee may stop supporting its pension plan.
Federal law requires a large employer that shuts down a facility that employs more than 20% of its pension plan members to make a similar payment.
The proposed rule, published today in the Federal Register, would create a rule describing the procedure the PBGC has been using on a case-by-case basis to handle facility closings all along, the PBGC says.
The PBGC has posted a notice describing the proposed rule in the Federal Register at //a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-3702.pdf
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