November 30, 2022

Volume XII, Number 334

Plan Sponsor Basics: Section 4062(E) Plant Shutdown Liability

Please join us for the second installment of our 2015 Plan Sponsor Basics webinar series, which focuses on the issues that many plan sponsors face in the design and operation of their retirement plans.

This session will review and analyze the new ERISA section 4062(e) “plant shutdown” liability rules adopted by Congress at the end of 2014. ERISA section 4062(e) has long been a source for additional pension funding liability when pension plan sponsors discontinue operations through a corporate transaction or a reduction in force. However, uncertainty regarding many fundamental rules and concepts and increasingly aggressive enforcement by the Pension Benefit Guaranty Corporation led Congress to overhaul the rules. We will explore the rules and concepts that plan sponsors should consider as they evaluate selling, buying, or closing businesses.