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PBGC-Initiated Terminations

PBGC-Initiated Terminations

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

Mailing address:

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