The IRS issued proposed regulations allowing an employer in bankruptcy to amend its pension plan to eliminate a lump-sum distribution or other accelerated payment option. Under the proposed rules, four conditions must be satisfied: (i) the plan?ÇÖs enrolled actuary must certify that the plan?ÇÖs adjusted funding target attainment percentage is less than 100 percent; (ii) the plan must not permitted to make any ?Ç£prohibited payments,?Ç¥ (iii) the bankruptcy court must issue an order stating that the adoption of the amendment is necessary to avoid a distress termination or an involuntary termination of the plan prior to completion of the bankruptcy case; and (iv) the PBGC must issue a determination that the amendment is necessary to avoid a distress or involuntary termination of the plan prior to completion of the bankruptcy case and that the plan assets are not sufficient for guaranteed benefits. The preamble to the proposed regulations states that… Continue Reading
The decision is in and can be found here:?á http://www.supremecourt.gov/opinions/11pdf/11-393c3a2.pdf We are still reading through the opinion, and will?á provide a more in-depth analysis soon.?á In the meantime, the short of it is that the individual mandate has been upheld and group health plans need to continue to comply with PPACA.