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HRD-85-16 1 (1985-03-14)

handle is hein.gao/gaobabeyv0001 and id is 1 raw text is: 



BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES




Effects Of Liabilities Assessed

Employers Withdrawing From

Multiemployer Pension Plans


The most controversial changes the Multiemployer
Pension Plan Amendments Act of 1980 made to the
Employee Retirement Income Security Act of 1974
concerned the liability imposed on employers
withdrawing from multiemployer defined benefit
pension plans. Under the amendments a withdrawing
employer must generally continue payments to the
plan for its share of the plan's unfunded vested
benefits, which are the value of nonforfeitable
benefits under the plan less the value of the plan's
assets.

GAO believes that the liability imposed on with-
drawing employers increases the pension security of
participants in poorly funded plans. It also provides an
additional measure of protection for the Pension
Benefit Guaranty Corporation's insurance fund
established by the 1974 act to guarantee plan
benefits. However, changes can be incorporated to
make application of withdrawal liability more effective
and equitable. Toward that end, this report proposes
two amendments to the withdrawal liability provisions
for the Congress to consider.





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z               -GAO/HRD-85-16
                                                              MARCH 14,1985
     1         0


0315-(4


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