richard Posted August 24, 1999 Share Posted August 24, 1999 Plans of Professional Service Employers with fewer than 25 active participants are not covered by the PBGC. How broad can one define Professional Service Employer (ERISA 4021(B) and © have the statutory language.) Any cites? Thanks Link to comment Share on other sites More sharing options...
David Posted August 25, 1999 Share Posted August 25, 1999 Our office uses RIA. The Pension Coordinator has the following two paragraphs: 58,217-Professional Service Employer Defined and 58,218 -Who Are Professional Individuals. The footnotes cite ERISA section 4021©(2)(A)and 4021©(2)(B) and 17 separate PBGG Op Letters. Link to comment Share on other sites More sharing options...
Lorraine Dorsa Posted August 28, 1999 Share Posted August 28, 1999 The PBGC regs are quite specific and list a number of professions you might not consider. If in doubt, you can get a determination from the PBGC with regard to whether your plan is covered. ------------------ Link to comment Share on other sites More sharing options...
Lynn Campbell Posted July 7, 2000 Share Posted July 7, 2000 Would this Plan be covered by PBGC? For first few plan years, the participants were: owners(husband and wife), their 2 daughters and 1 common law-employee. Now the only participants are husband and wife and 2 daughters and husband of 1 daughter. Thanks for help. Link to comment Share on other sites More sharing options...
Guest Ray Williams Posted July 11, 2000 Share Posted July 11, 2000 Under the circumstance you described the plan would no longer be required to pay PBGC premiums, however, in order to stop paying premiums your client will need to write to the PBGC. You will recite the facts and request that the PBGC determine that premiums are no longer required. PBGC must remove the plan from is database of plans required to pay premiums, otherwise it will expect to receive payments and begin enforcement actions when they are not received. Link to comment Share on other sites More sharing options...
Guest Mr. X Posted July 11, 2000 Share Posted July 11, 2000 I disagree with Ray's response. If the employer is not a professional service group, it is covered by the PBGC both before and after the changes in employees. Attribution for PBGC purposes is determined under IRC 1563, not IRC 318. Therefore, the daughters are not attributed any of the ownership held by their parents because they themselves are not >50% owners. Even under 318 attribution, the husband would not be attributed any ownership. Link to comment Share on other sites More sharing options...
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