Opinion letters database

Types of benefits guaranteed.

Withdrawn: This letter must be rescinded because its statement “Death benefits for surviving beneficiaries of a participant who died before retirement but after the Plan terminates would not be guaranteed by the PBGC” is contrary to ERISA section 4022(e) (requiring PBGC to treat as nonforfeitable QPSA benefits where the participant dies after DOPT). (02/12/2026)

Welfare plans are not covered.

Described plan is a professional service employer plan exempt from coverage.

Determination of coverage for substantial owner plan.

Exemption from Title IV under ERISA § 4021(b)(7) is inapplicable where a plan is established and maintained for employees who are Puerto Rico residents born in Puerto Rico and thus are U.S. citizens, not aliens.

Although the plan’s profit-sharing (individual account) portion is excluded from Title IV, the defined benefit portion did not terminate before September 2, 1974, and therefore is subject to coverage under Title IV.

Contingent liability insurance program isn't currently available and couldn't be applicable to a termination occurring prior to 09/02/1979. PBGC's exercise of discretion to guarantee benefits upon plan termination is based on all the facts and circumstances, including the hardship participants would suffer absent guarantees, the cost to PBGC, and likelihood and manner of recovery of all or a significant portion of PBGC's outlay from employer liability payments.

PBGC does not need to be notified when a plan excluded from ERISA coverage is terminated.

A plan sponsored by a political subdivision that has taxing power is a governmental plan and is not covered.

Plan covered by Railroad Retirement Act financed by contributions required under that act is not covered by Title IV.

An individual retirement account is not subject to Title IV.

A plan funded by a tax-qualified trust that provides a defined benefit is covered.

Plan is not a governmental plan and is covered by Title IV to the extent that it provides fixed benefits to participants for past service.

Plan sponsored by American Indian tribe is covered under Title IV.

This letter addresses a question as to whether PBGC guarantees extend to a plan established by a Guam corporation or proprietorship for employees who reside in Guam.

Withdrawn: PBGC does not consider a plan to be covered under Title IV of ERISA where its trust is created or organized outside the U.S. and no §1022(i)(2) election has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

Request for coverage determination is under review for government plan exclusion. Determination will be delayed because of required coordination with DOL and IRS.

The described plan established and maintained outside of the United States is exempt from coverage.

Plan, maintained by a professional service employer, is exempt from coverage under Title IV.

Applicability of title IV to plan terminations occurring between July 1, 1974 and September 2, 1974.

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

Plan is a governmental plan, and is not covered by Title IV (reconsideration granted).

A plan with one participant who is a substantial owner is not covered.

A pharmacist is a professional individual, and a plan maintained by a pharmaceutical entity whose principal business is the sale of prescription drugs is a professional service employer plan exempt from coverage.

A physician is, and an insurance agent is not, within the definition of professional individual for purposes of the professional service employer exemption from coverage.

A plan with both defined benefit and defined contribution features does not pay premiums for participants whose benefit is solely based on the defined contribution formula.

Taft-Hartley plans and coverage under Title IV; if a fixed contribution rate proves to have been inadequate to fund promised plan benefits, upon
plan termination plan participants no longer lose their pensions. PBGC ascertains the amount of a plan's
insufficiency and pays the benefits guaranteed by Title IV.