Opinion letters database

The plan of a private transit system will become excluded from coverage after the operating assets are acquired by a political subdivision.

PBGC concluded that, despite minimal activity in early July 1974, the plan in substance terminated before July 1, 1974, and therefore section 4082(b) did not authorize it to guarantee benefits.

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

Notice under section 4063(a) of ERISA doesn't take any particular form, but certain information must be provided to PBGC. In addition, PBGC interprets section 4001(a)(2)(A) and (B) to require that employer contributions equal or exceed 10% of all employer contributions for the appropriate years for the employer to be a substantial employer.

Deposits made into a Keogh Trust are not covered.

The plan administrator must file a notice of proposed termination with PBGC, and the assets of the plan may not be distributed pursuant to the plan termination procedure until PBGC issues the plan administrator a notice of sufficiency.

Individual account plans are exempt from coverage. The described plan is a defined benefit 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.

Section 4041 bars only termination-related distributions during the 90-day review period without authorization, but permits ongoing benefit payments and ordinary administrative expenses, including actuarial fees.

PBGC is precluded from granting the plan's requested exemptions from the employer liability provisions in section 4064 of ERISA.`

Addresses parameters of individual account plan.

Underfunding of a pension plan prior to the effective date of the minimum funding standards of section 302 become effective does not constitute a reportable event under section 4043(b)(5).

PBGC advised that only certain information can be protected from public disclosure and that the requestor should indicate what information it would like to be kept confidential.

Sections 4062(e). 4063, 4064 and 4065 don't apply as a result of this sale and reportable events need to be timely announced to PBGC.

Participants whose benefit is solely the product of defined contribution portion of plan not included when computing PBGC premiums.

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

Addresses parameters of individual account plan/defined contribution plan.

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

PBGC addressed a question about the definition of a multiemployer plan for purposes of Title IV of ERISA.

Clarification about premium payment form (PBGC Form 1) no longer permits half-dollar rounding; clarification that refunds of overpayments will be made to the entity which paid the premium initially; clarification that an amendment to the plan that would delete from the plan a benefit previously provided is “reportable event” and must be reported to PBGC as such even if the change may be beneficial.

Addresses the phase-in of guaranteed benefits.

Explains that if a terminating plan’s assets are sufficient to cover all vested and guaranteed benefits, the employer likely will not incur liability under section 4062(b), subject to PBGC’s review upon filing a termination notice

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

Individual account plans/defined contribution plan are not covered.

In making a nonforfeitability determination, PBGC would not ordinarily look to circumstances outside the terms of the plan.