Pension Benefit Guaranty Corporation June 16, 2006 – Federal Register Recent Federal Regulation Documents

This rule provides a formula for computing liability under section 4063(b) of the Employee Retirement Income Security Act of 1974 (``ERISA'') when there is a substantial cessation of operations by an employer as described by section 4062(e) of ERISA. That section provides, among other things, that when a section 4062(e) event occurs, liability arises under section 4063 of ERISA. However, the method described in section 4063 for determining liability is impracticable when applied to a section 4062(e) event. This rule, which is narrow in scope, provides a practicable and transparent formula for calculating employer liability when a section 4062(e) event occurs. This rulemaking is part of the PBGC's ongoing effort to streamline regulation and improve administration of the pension insurance program.