Opinion letters database

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.

Section 1341, which requires notice to PBGC of plan termination, does not apply to plans that are not covered under Title IV, like individual account plans.

A plan year is the calendar, policy, or fiscal year on which the records of a plan are kept.

Explains that a plan’s termination occurs when accruals and contributions cease, not merely when asset distribution is directed or completed.

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).

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.

PBGC is not authorized to waive interest on late premium payments but did waive penalty under circumstances of the plan at issue.

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.

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

Professional service employer plans, substantial owners plans, and individual account plans/defined contribution plans are not covered.

PBGC explains that in general, an exempted individual account plan is to be distinguished from a covered defined benefit plan in which the amount of the retirement benefit is specified in the plan. If a plan is established and maintained by insurance contracts that does not in itself exempt the plan from Title IV coverage.

An individual retirement account is not subject to Title IV.

PBGC indicated no benefits guaranteed and no employer liability for a plan that terminated in 1974.

A plan is covered for the purpose of premium payments upon the date of establishment or the effective date whichever is later.

PBGC indicates that for those terminating present employment, vested benefits in a multi-employer pension plan are protected by insurance provisions of ERISA.

A plan established or maintained by a labor union where all contributions are made by members and none are made by the union is exempt from coverage.

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

PBGC does not have sufficient information to conclude that sponsor is a professional service employer.

Profit sharing plans are excluded from coverage.

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

A plan funded entirely by participants’ contributions is exempt from coverage.

PBGC insurance program covers retirees presently in pay status.

Individual account plans are excluded from coverage.

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

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