The per-participant flat premium rate for plan years beginning in 2019 is $80 per participant for single-employer DB plans; the variable-rate premium is $43 per $1,000 of unfunded vested benefits
, capped at $541 times the number of participants.
Because plaintiff is "[a] former employee who has neither a reasonable expectation of returning to covered employment nor a colorable claim to vested benefits
," he is not a participant under ERISA, and his claims are not preempted.
Unisys Corporation (NYSE: UIS) has completed a lump-sum offer for eligible former associates who have deferred vested benefits
under the company's US pension plan to receive the value of their entire pension benefit in a lump-sum payment.
First, many firms have offered buyouts to terminated employees with vested benefits
. Those individuals no longer accrue benefits, so their cost is not growing, but removing them from the rolls makes life simpler for the human resources (HR) department.
This means that vested benefits
for participants can be reduced as necessary to avoid insolvency (taking into account any partition), as long as the reduction keeps benefits at no less than 110 percent of the PBGC guaranteed rate for multiemployer plans.
For many multiemployer plans, the result has been inversion of the pyramid: fewer dollars flowing in from fewer employers and for fewer active employees, while the number of individuals having vested benefits
for themselves and their spouses swells.
Under applicable ERISA provisions, stopping contributions was deemed a withdrawal from the Teamsters Fund, in which case Scott Brass became liable for its proportionate share of the Teamsters Fund's unfunded vested benefits
, totaling approximately $4.5 million.
In this rare scenario, a CASD SERP will typically deny the executive all vested benefits
and make the credit union the sole owner of the policy.
* Calculating a plan's unfunded vested benefits
under the PBGC variable-rate premium rules; and
The Retirement Equity Act was passed due to the "inequitable" possibility that the surviving spouse would receive "no survivor benefits under the plan even though the participant had accrued significant vested benefits
before death."iv The concern of Congress was even more acute when the spouse was a homemaker without assets of his or her own.v To remedy this, Congress required all defined benefit plans, and most defined contribution plans, to provide a default payout option of a Qualified Joint and Survivor Annuity (QJSA).
In general, the rules are designed to allocate all of a plan's unfunded vested benefits
among the employers responsible for contributing to the plan based on each employer's share of the plan's contributions.