PBGC announces final regs on USERRA benefits
The Pension Benefit Guaranty Corporation (PBGC) announced on November 16, it will publish a final rule that amends PBGC's benefit payments regulation to implement provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). USERRA provides that an individual who leaves a job to serve in the uniformed services is generally entitled to reemployment by the previous employer and, upon reemployment, to receive credit for benefits, including employee pension plan benefits, that would have accrued but for the employee's absence due to the military service.
Under PBGC's current benefit payments regulation, a benefit is guaranteed only if the participant satisfies the conditions for entitlement to the benefit on or before the plan's termination date. The final rule provides that so long as a service member is reemployed within the time limits set by USERRA, even if the reemployment occurs after the plan's termination date, PBGC will treat the service member as having satisfied the reemployment condition as of the termination date. This will ensure that the pension benefits of reemployed service members, like those of other employees, will generally be guaranteed for periods up to the plan's termination date.
The final rule will appear in the Federal Register tomorrow, November 17, 2009, and become effective on December 17, 2009. The change will apply to reemployments under USERRA initiated on or after December 12, 1994. Once the final rule is effective, PBGC will begin adjusting final benefit determinations of affected participants and make back payments with interest.
Reprinted with permission. © CCH
<p>PBGC announces final regs on USERRA benefits The Pension Benefit Guaranty Corporation (PBGC) announced on November 16, it will publish a final rule that amends PBGC's benefit payments regulation to implement provisions of the Uniformed Services Employment and Reemployment Rights</p>