Opinion letters database

Profit sharing plans are excluded from coverage.

There is no stated exclusion from coverage for plans funded through insurance or annuity policies. A benefit that is the product of a “separate account” under section 3(17) is not covered.

Explains that the five-year premium payment requirement applies only to contingent liability coverage under of (former) section 4023, and clarifies the application of the five-year phase-in rule applies to newer plans and recent plan amendments.

Defined benefit plans that meet the requirements of section 4021(a) are covered. Professional service employer plans and individual account plans are not covered.

This letter addresses a question as to whether defined benefit plans established and maintained in Puerto Rico are subject to the provisions of Title IV of ERISA.

Withdrawn: PBGC does not consider a plan to be covered under Title IV of ERISA where its trust is created or organized outside the U.S. and no §1022(i)(2) election has been made. (04/19/2013)

A pension plan maintained by a tax exempt, non-profit trade association is
covered under section 4021 unless excluded under section 4021(b). However, if benefit accruals and contributions ceased and arrangement was made with a group annuity provider, the plan appears to have terminated at the time and not be covered by Title IV.

Sole stockholder and only participant excluded from coverage under Title IV.

An unfunded plan that is not maintained through a trust or annuity and does not satisfy IRC section 401(a) is not covered under section 4021(a).

The plan sponsor would be liable to PBGC to pay nonforfeitable plan benefits.

Contingent liability insurance program.

Withdrawn: Obsolete. No longer applicable since the passage of MPPAA in 1980.  (02/12/2026)

A plan maintained by a municipal water authority created under state law is a governmental plan and is thus excluded from coverage under 4021(b)(2).

Church plans are exempt from coverage under Title IV. PBGC is presently unable to determine whether the exemption applies to the Plans because IRS has not yet issued regulations under § 414(e) of the Internal Revenue Code setting forth criteria for determining whether a plan is a church plan.

PBGC indicated that two plans were excluded from coverage under Title IV because one plan was an employee welfare plan and the other was an individual account plan.

Deposits made into a Keogh Trust are not covered.

A plan’s coverage begins on the date of tax qualification. The plan administrator must pay premiums from the date a plan becomes covered.

Plan is excluded from Title IV coverage as a plan established and maintained by a professional service employer.

Plan sponsored by an entity that is not a governmental agency or instrumentality within the meaning of § 4021(b)(2) is not a governmental plan and thus is not excluded from coverage.

The plan records are maintained in Hong Kong, and all of the participants are nonresident aliens who work outside of the United States. This plan is excluded from Title IV coverage.

A plan maintained by a licensed clinical laboratory bio-analyst is a professional service employer plan.

Bankruptcy does not affect PBGC's guarantee of basic benefits. The plan administrator must file a Notice of Intent to Terminate regulation, after which PBGC will evaluate the plan's assets and liabilities and determine how to proceed.

A plan whose trust is maintained in the Virgin Islands is not covered.

PBGC has not yet established its contingent liability insurance program.

Withdrawn: Obsolete. No longer applicable since the passage of MPPAA in 1980.  (02/12/2026)

Conversion from a defined benefit plan to an individual account plan is treated as a termination and is subject to the plan termination provisions of Section 4041.

Plan maintained by government contractor is not excluded from coverage under § 4021(b)(2) because contractor is a private entity, not a government instrumentality.

This plan was determined to be governmental and therefore excluded from Title IV coverage.