Search results

(175,641 - 175,660 of 178,032)

Pages

CRS86106EPWpage16
Title
CRS86106EPWpage16
Page from
info:fedora/mu:38612
CRS86106EPWpage18
Title
CRS86106EPWpage18
Page from
info:fedora/mu:38612
Text
of a nonvested participant, years of service before any break in service are required to be taken into account upon reemployment unless the number of consecutive l-year breaks in service equals or exceeds the greater of (1) 5 years or (2) the aggregate number of years of service before the con- secutive 1-year breaks in service. If any years of service are not required to be taken into account by reason ofia
CRS86106EPWpage20
Title
CRS86106EPWpage20
Page from
info:fedora/mu:38612
CRS86106EPWpage19
Title
CRS86106EPWpage19
Page from
info:fedora/mu:38612
Text
certain periods of absence from_work. This rule applies to an individé ual who is absent from work because of (1) pregnancy, (2) birth of a child of the individual, (3) a child being placed with the individual for adoption (but not foster care), or (4) caring for the child during the period immediately following the birth or adoption. During the period of absence, the individual is treated as having com
CRS86106EPWpage23
Title
CRS86106EPWpage23
Page from
info:fedora/mu:38612
Text
cRs-i5- or which slow down the rate of benefit accrual after that point, allows vested benefits to be calculated at 3 percent of the maximum benefit multiplied by the years of participation (up to IOQ percent of the benefit). ’ . o.The third test (fractional rule) for benefit accrual is geared to a worker's proportionate time under the plan. For example, if an employee's maximum possible period of accrual would have been 40 years from the date of beginning plan participation to the date of the plan's normal retirement age (from 25-65), the worker starting under the plan at age 25 and working to age 60 would get 35/40 of the maximum credit toward a pension. » B. Suspension of Benefits A plan may suspend pension benefits for any period in which the individual is reemployed by the same employer under whose plan the benefits are paid. In the case of a multiemployer plan, a suspension is permitted when the employee is employed in the same industry, in the same trade or craft, or in the same geographical area covered under the contract as was the case immediately before he retired. C. Changes in Vesting Schedule Generally, plan amendments are not permitted to reduce benefits already accrued by an employee. If at any time the vesting schedule in a single employ~ _er plan is changed, the change cannot reduce the percentage of the accrued ben- efit vested by each participant to the date when the plan amendment is adopted. In addition, any participant with at least 5 years of service may elect to re~ main under the preamendment vesting schedule. However, amendments to certain financially troubled multiemployer plans, which are termed plans in "reorganization," may reduce benefits attributed to employer contributions if certain conditions are met. Benefits which are sub~ ject to this reduction are those which have been in effect for less than 60
CRS86106EPWpage22
Title
CRS86106EPWpage22
Page from
info:fedora/mu:38612
Text
limit the amount of "back loading;T a practice of providing a higher benefit accrual rate for later years of service than for earlier years. Any amount of "front loading" is permitted (i.e., providing a higher accrual rate. for earlier years of service than for later years). o Under the first test (133-1/3 rule), plans that have more than one rate of pension benefit accrual cannot have
CRS86106EPWpage26
Title
CRS86106EPWpage26
Page from
info:fedora/mu:38612
Text
CRS-l8 terminated before august 23, 1984, generally must elect survivor coverage. Notice of this right need only be included in the summary annual report senti to them. In order to waive the preretirement spouse's benefit, effective January 1, 1985, the participant and spouse must both sign a waiver form. The spouse's signature must be either signed in the presence of a plan
CRS86106EPWpage25
Title
CRS86106EPWpage25
Page from
info:fedora/mu:38612
Text
23, 1984 (the date the law was signed by the President). Former employees with existing benefit rights based on at least 10 years of service must have 1 hour of service in a plan year beginning after December 31, 1975. Survivor benefit coverage is generally automatic for married employees. However, former employees who
CRS86106EPWpage24
Title
CRS86106EPWpage24
Page from
info:fedora/mu:38612
Text
on the availability of the benefit or subsidy and (2) plan amendments and plan terminations that occur after July 30, 1984. ERISA does not prevent freezing accrued benefits or eliminating future benefit accruals, provided the plan provides 15 days prior notice to partici-i pants and beneficiaries. The following are generally not to be considered "retirement-type" subsi- _ dies: (1) qualified disability
CRS86106EPWpage29
Title
CRS86106EPWpage29
Page from
info:fedora/mu:38612
Text
funded. Generally, initial past service liabilities and past service liabilities arising under plan amendments are to be amortized over no more than 30 years (40 years in the case of plans in existence on January l, l974), and gains and losses resulting from plan experience are to be amortized over no more than 15 years. Changes in plan liabilities resulting from changes in actuarial assump- tions
CRS86106EPWpage27
Title
CRS86106EPWpage27
Page from
info:fedora/mu:38612
Text
CRS-l9 notify their employees of this option. fhe notice must be.a written explanation to each participant which states: 0 the terms and conditions of the qualified joint and survivor annuity; i o the right of the participant and spouse to decline the survivor annuity and the effect of the decision; ‘ o the rights of the participant's spouse; and o the right to reverse the decision
CRS86106EPWpage30
Title
CRS86106EPWpage30
Page from
info:fedora/mu:38612
Text
CR8-22 substantial business hardship, the IRS may waive the funding requirement. The amount waived (plus interest) is to be amortized over no more than 15 years. These funding rules do not cover profit sharing and stock bonus plans. For instance, an employer would not have to contribute in a year in which there were no profits. «Moreover, pension plans funded exclusively by the purchase of cer
CRS86106EPWpage28
Title
CRS86106EPWpage28
Page from
info:fedora/mu:38612
Text
. 1.!!!
CRS86106EPWpage38
Title
CRS86106EPWpage38
Page from
info:fedora/mu:38612
Text
-employer pension plans have been insured by PBGC since July 1, l974. Q As long as the plan is ongoing, the plan administrator pays premiums to PBGC for l termination insurance coverage. The single-employer program was substantially revised in 1986 to place it on a more sound financial footing. The Consolidated Omnibus Budget Reconciliation Act of 1986 (P.L. 99-272) increased the annual in- surance premium
CRS86106EPWpage45
Title
CRS86106EPWpage45
Page from
info:fedora/mu:38612
Text
in contributions for a plan year. In addition, if a plan is con- sidered "overburdened" because it has a high proportion of re- tirees, the minimum contribution requirement is reduced by an overburden credit, giving the employer relief. 0 The PBGC will guarantee 100 percent of the first $5 of monthly ben- efits earned per year of service plus 75 percent of the next $15 of monthly benefits per year
CRS86106EPWpage46
Title
CRS86106EPWpage46
Page from
info:fedora/mu:38612
Text
cRs—4oi o Increases in annual insurance premiums charged for each plan partic- ~ ipant in a multiemployer plan are phased as follows: Plan year beginning on ‘ Premium per 0 or after September 26 participant 1981-1984 ............................... $1.40 1985-1986 ............................... 1.80 1987-1988 ............................... 2.20 1989 and after .......................... 2.60 o
CRS86106EPWpage39
Title
CRS86106EPWpage39
Page from
info:fedora/mu:38612
Text
CRS-33 age, certain early retirement and disability benefits, and benefits for survi- vors of deceased plan participants. Only vested benefits are insured. ERISA sets a maximum limit for PBGC guaranteed benefits. This maiimum amount is based on a formula contained in ERISA, and is adjusted periodically. For pension plans ended in 1986, the maximwn pension guarantee is $1,790 a month. The maximum
CRS86106EPWpage40
Title
CRS86106EPWpage40
Page from
info:fedora/mu:38612
Text
received their benefit com- mitments. b. Distress termination. An employer may terminate an underfunded plan under a distress termination only if one of the following conditions applies: 0 Bankruptcy or insolvency proceedings seeking liquidation have been filed by or against the company; o The company is under bankruptcy reorganization and the bankruptcy court has approved a plan termination; o
CRS86106EPWpage43
Title
CRS86106EPWpage43
Page from
info:fedora/mu:38612
Text
CRS-37 6. Attempt to Evade Liability If a company sells or transfers a business with an underfunded pension plan for the purpose of evading pension liabilities, it can be held liable if the plan is ended within 5 years of the transfer. However, the employer is not liable for any increases or improvements in plan benefits adopted after the transfer. 7. Administering Insufficiently Funded Terminated Plans When PBGC funds are required to provide guaranteed benefits, PBGC becomes trustee of the pension plan. Retirees receive monthly benefit checks directly from PBGC_by mail, or from a bank or financial institution authorized to make benefit payments on PBGC's behalf. Individuals receive benefits upon reaching a the retirement age specified for their benefit under their plan. The amount received depends on the provisions of the pension plan, PBGC's maximum guaran- tee limit, and whether or not benefit increases have been phased in. In any event, the amount received cannot exceed what would have been received if the plan had continued. 8. Lump-Sum Settlement If a person receives a lump-sum settlement from his pension plan when it terminates, he can put the money into another retirement plan without paying taxes on it immediately. The law provides that an individual can make a "tax- free rollover" into an individual retirement arrangement (IRA) within 60 days after receiving a lump~sum distribution. By choosing this rollover, the indi- vidual can defer taxes on the distribution until the funds are withdrawn from the IRA.
CRS86106EPWpage44
Title
CRS86106EPWpage44
Page from
info:fedora/mu:38612
Text
CRS-38 C. Multiemployer Pension Plans Multiemployer pension plans were covered by the pension plan insurance pro- gram with the passage of the Multiemployer Pension Plan Amendments Act of 1980 (P.L. 96-34). 1. Withdrawal Liability Employers who leave a multiemployer plan for any reason continue to be lia- ble for any underfunding. The purpose of the withdrawal liability is to protect

Pages