The IRS released Rev. Proc. 2017-43 to revise procedures for application for a suspension of benefits under a multiemployer defined benefit plan that is in critical or declining status under Section 432(e)(9).
The Multiemployer Pension Reform Act of 2014 pertains to multiemployer plans that are projected to have insufficient funds at some point in the future to pay the full plan benefits to which individuals will be entitled (referred to as plans in "critical and declining status"). The sponsors of those plans are permitted to reduce the pension benefits payable to plan participants and beneficiaries if certain conditions are satisfied. A suspension of benefits is not permitted to take effect prior to a vote of the participants of the plan with respect to the suspension. The IRS issued temporary regulations (T.D. 9735) and proposed regulations (REG-123640-15) that provide guidance relating to the administration of that vote.
The IRS previously issued Rev. Proc. 2016-27 to provide application
procedures and a model notice that a plan sponsor proposing a
benefit suspension could use to satisfy the content and readability
requirements of Section 432(e)(9). Rev. Proc. 2017-43 supersedes
Rev. Proc. 2016-27. Plan sponsors should follow the application
process prescribed in Rev. Proc. 2017-43 for an application for
approval of a proposed benefit suspension submitted on or after
Sept. 1, 2017.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
