The plan continues to pay service providers and the plan receives financial assistance from PBGC to pay its reasonable administrative expenses.
No, but PBGC provides general advice to plan administrators and trustees concerning what is reasonable. PBGC reserves the right to approve unique expenditures from time-to-time with adequate explanation.
No, expense amounts always vary by plan. These variations are a result of plan size, geographic location, legal matters, etc.
Administrative employees (either union office or third-party), legal and attorney fees, actuarial fees, accountant fees, rent, telephone/internet, fiduciary insurance, office supplies, postage, record retention/storage, etc.
The amount of a plan’s administrative expenses has no impact on participants’ benefits in an insolvent multiemployer plan. Participants will always receive their guaranteed benefit regardless of the amount of administrative expenses post-insolvency.
PBGC auditors review all expenses submitted for reimbursement by the plan to PBGC for reasonableness. Any concerns PBGC has resulting from these reviews will be resolved on a case-by-case basis with the responsible plan professionals.