Rule Issued With Anti-Cutback Exception, May Save Airline's Pension Plan

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A plan sponsor that is a debtor in a bankruptcy proceeding can amend its single-employer defined benefit plan to eliminate a lump-sum distribution option, if certain conditions are met, under a final rule (T.D. 9601) issued by the Treasury Department and IRS. “It could definitely come into play and help keep plans going in any of these Chapter 11 arrangements where pensions are an issue,” Louis Mazawey, a principal at Groom Law Group, tells BNA.