Opinion letters database

Modified plan document provision that permits reversion of excess assets to employer is invalid because modification was made without consent of required party and thus, excess assets must be distributed to participants instead. Also, Plan is a covered Plan, as it satisfies all requirements for qualification imposed by § 401(a) of the Internal Revenue Code and the Plan, at all times, has provided for employer contributions notwithstanding any failure to make such contributions.

Plan isn't excluded from coverage; Under ERISA, vested benefits are generally guaranteed by PBGC even if the plan includes provisions limiting payouts to available assets. If the plan is terminated, employer liability will be allocated among contributing employers.

Addresses how a plan cannot be excluded from coverage as an individual account plan.

To be exempted from coverage as a governmental plan, all employees covered by the plan must be public employees and the political subdivision must be the plan sponsor.

Canadian participants of a pension plan should be counted when computing PBGC premiums where company is based in US with a foreign sales office.

Individual account plans are excluded from coverage.

Following a restructuring of three pension plans maintained by one company, each restructured plan remains covered, each plan qualifies as a successor plan, and the plan sponsor would be liable to PBGC for any funding deficiency at termination.

PBGC stated that while no distribution of plan assets may occur during the 90-day review period under section 4041(a), the plan administrator may pay necessary life insurance premiums during that period to maintain coverage until distribution, preferably on a prorated or short-term basis.

A plan maintained by an employer providing veterinary services that is owned or controlled by licensed veterinarians is a professional service employer plan not covered.

A plan maintained by an employer providing veterinary services that is owned or controlled by licensed veterinarians is a professional service employer plan exempt from coverage.

A plan maintained by a council created as a political subdivision under state statute is a governmental plan and is thus excluded from coverage under 4021(b)(2).

Section 4022(c) authorizes PBGC to establish a generally applicable non-basic benefit guarantee program, not case-by-case coverage. Because PBGC has not instituted such a program, it cannot guarantee the plan’s non-basic benefits.

Discusses how to hold or allocate trust funds pending a determination of asset sufficiency under Section 4041(b)

Plans are covered under Title IV because, among other things, the participant is entitled to a monthly retirement benefit equal to a specific dollar amount multiplied by the participant’s years of credited service. The employer’s obligation to contribute does not cause the plan to be considered an individual account plan.

Addresses parameters of individual account plan.

A plan without a written plan document is not covered.

Employer providing consulting services in bio-mechanics, forensic physics, traffic reconstruction, injury analysis, and automotive and traffic safety is a professional services employer.

With respect to a reportable event, PBGC requests specified data related to plan year in order to determine whether the plan satisfies the tax-qualification provisions to be Title IV-covered.

No coverage because threshold requirement of a written plan document not satisfied. Also, there was no plan provision found that referred to a concept of successorship and no evidence that a separate plan was adopted.

Covered plans are required to pay premiums, whether or not funded by the purchase of insurance or annuity contracts.

Food brokers are not professional individuals for purposes of the professional service employer plan exclusion and therefore are covered under Title IV.

A plan maintained by a state licensed planner whose company of licensed planners provides consulting services to assist municipal planning boards with development plans, land use studies, and housing surveys is a professional service employer plan and therefore excluded from PBGC coverage.

There is no exclusion from coverage for defined benefit plans that are funded by the
purchase of private insurance policies.

Plan did not properly terminate and does not meet criteria under § 4021(b)(5) for coverage exclusion because Plan was funded in part by employer contributions and the exclusion applies only to plans funded solely by employee contributions.

Plan that promises a defined benefit at retirement, and is not an individual account plan, is covered; thus, payment of premiums at the rate enumerated under § 4006 is mandatory. Also, § 4064 defines the termination liability if Plan is a multiemployer plan. Additionally, Plan must notify PBGC if a reportable event occurs under § 4043(b)(2) relating to a reduction in a participant's benefit.