The proposed class of plaintiffs alleges Citgo is using mortality assumptions that are at least 50 years out of date while converting from a pension plan’s standard annuity benefit to alternative options.
A purchase agreement allowing the company to emerge from Chapter 11 bankruptcy does not include the pension plan debts or assets, despite its comparatively strong funding position.
It would increase public pension plans’ required contributions and result in lower contributions by members.
A law passed in 2014 allows stressed union pensions to reduce benefits in order to prevent insolvency, subject to approval by the U.S. Treasury. One leading actuarial firms says the agency is preparing to wrongfully reject an application made by one of its clients.
Focused analysis of market movements, business challenges and legislative and regulatory actions.
Among other elements, Title IV of ERISA is used to determine liability for PBGC termination premiums.