What is a PBGC-initiated termination?
The law provides that PBGC may terminate a pension plan, even if a company has not filed to terminate a plan on its own initiative, if:
- the plan has not met the minimum funding requirements;
- the plan cannot pay current benefits when due;
- a lump sum payment has been made to a participant who is a substantial owner of the sponsoring company; or
- the loss to PBGC is expected to increase unreasonably if the plan is not terminated.
PBGC must terminate a plan if assets are unavailable to pay benefits currently due.
Contact info for PBGC-initiated terminations
Pension Benefit Guaranty Corporation
1200 K Street, N.W., Suite 270
Washington, DC 20005-4026
Phone: 1-800-736-2444, Ext. 4100, or (202) 326-4242