TAX 9873 Lecture Notes - Lecture 13: Underfunded, Flat Rate, Life Annuity
Document Summary
Single v mep amortization period: single = 7 | mep = 15. Multi-employer pension plan amendment act of 1980. If you"re an employer that stopped contributing to a plan and there"s an outstanding liability (even if you"ve covered your contribution) you"re required to pay the proportion. Multiemployer plans are centrally managed by board of trustees. Once income = >,900, you get no more social security (lower wage employees get more benefits) Permitted disparity = irs allows employers to make a contribution on the excess. Step 1: base allocation to all employes. Excess percentage cannot be more than lesser: of 5. 7% or base percentage. If secured creditors get equity, usually nothing left for unsecured creditors like (pbgc) Companies discharge liabilities by filing for bankruptcy. If it is a defined contribution mep, it"s not as risky b/c of account allocation; spread expense among employees. Pre-petition liability - claim: general unsecured creditor usually discharged or fraction of original value.
