Guest wolfpack Posted June 8, 1999 Report Share Posted June 8, 1999 Situation is a overfunded multiple-employer DB plan(2 employers)where each company now wants to split off and have a seperate plan and investment pool. What special reporting requirements will there be? Is a 5310-A required? What about the PBGC? Would this be treated as two new plans receiving a transfer and therefore a final 5500 required for the multiple-employer plan and new effective dates for the spun off plans? Any guidance would be appreciated. Link to comment Share on other sites More sharing options...
Guest wolfpack Posted June 9, 1999 Report Share Posted June 9, 1999 Just to be clear this is truly a multiple-employer plan..not a controlled group. Thanks. Link to comment Share on other sites More sharing options...
Guest bswift Posted June 16, 1999 Report Share Posted June 16, 1999 wolf - lots of issues are involved as you may have guessed. the pbgc will have to be notified and will likely be interested in the interest rate assumptions that you use to calculate benefits and any overfunding. i had a situation once where a db plan was being spun off and the parties thought the plan was overfunded. once the pbgc intervened, they took the position that using their assumptions, the plan was actually underfunded. You'll also have to determine whether a portion of the any overfunding will have to be spun off with the group that leaves the plan. my recollection is yes, but you'll have to check that. a new plan will have to be created for the group that leaves and each plan will have to file a 5310-A. hope that helps Link to comment Share on other sites More sharing options...
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