A moratorium by the Pension Benefit Guaranty Corp. on the enforcement of the hotly contested 4062(e) regulation has been lifted.
In its place are new standards more favorable to sponsors, changes that were made as part of the recently adopted omnibus spending bill, alongside the Multiemployer Pension Reform Act of 2014.
For years, the PBGC seemed disinterested in enforcing the "substantial cessation" rule, which resulted in fines against defined benefit plans whenever a sponsor ceased operations at a facility that triggered a 20 percent reduction in participants.
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