Definition of "Employers contingent net worth liability determination"
Fred Lindholm, Real Estate Agent
Real Estate One
Requirement upon termination of a pension plan; an employer must reimburse the pension benefit guaranty corporation (pbgc) for any loss that the PBGC incurs as the result of paying employee benefits that were the responsibility of the employer. The law requires reimbursement of up to 30% of the plan's net worth without regard to any contingent liability. This net worth is increased by escrowing or transferring any assets by the employer in contemplation of the plan's termination.
Have a question or comment?
We're here to help.