Today the IRS released temporary regulations relating to the administration of a multiemployer plan participant vote on an approved suspension of benefits under the Multiemployer Pension Reform Act of 2014 (MPRA). The MPRA 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 would be entitled. The sponsor of such a plan is permitted to reduce the pension benefits payable to plan participants and beneficiaries if certain conditions are satisfied. This “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 text of the temporary regulations serves as the text of proposed regulations, also released today by the IRS.