Senate Unanimously Approves Bill Modifying ERISA Section 4062

On September 16, 2014, the United States Senate unanimously approved Senate Bill 2511, which would amend Section 4062 of the Employee Retirement Income Security Act of 1974, as amended , to clarify the definition of substantial cessation of operations. ERISA Section 4062 enables the Pension Benefit Guaranty Corporation to require that employers financially guarantee pension obligations based on a plan's underfunded termination liability when an employer that maintains a pension plan shuts down operations at a facility, and as a result, more than 20 percent of the employer's employees who are plan participants incur a separation from employment.



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