gregburst Posted June 25, 2013 Share Posted June 25, 2013 Is an insurance agency considered a Professional Service Employer for PBGC purposes? I have a 401k client with 20 employees that is considering adding a DB plan. It's an insurance agency. Would PBGC coverage be required? Link to comment Share on other sites More sharing options...
Hojo Posted June 25, 2013 Share Posted June 25, 2013 http://www.pbgc.gov/docs/smallbusinessguide.pdf "Professional service employers are firms owned or controlled by professional individuals who principally provide professional services. "Professional individuals" include physicians, dentists, chiropractors, osteopaths, optometrists, other licensed practitioners of the healing arts, lawyers, public accountants, public engineers, architects, draftspersons, actuaries, psychologists, social or physical scientists, and performing artists." Link to comment Share on other sites More sharing options...
david rigby Posted June 25, 2013 Share Posted June 25, 2013 Hojo has the correct link to the PBGC book. However, notice two things: in the above quote, use of the word "include" see the statute (ERISA section 4021, Plans Covered). Section 4021©(2)(B) uses even broader language: "...includes, but is not limited to..." Probably the best action is to request a PBGC determination of coverage (page 7 of the above link). I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
Draper55 Posted June 28, 2013 Share Posted June 28, 2013 i had an insurance agency adopt a companion db plan for 2012. they paid their 2012 pbgc premium in april. Link to comment Share on other sites More sharing options...
tymesup Posted June 28, 2013 Share Posted June 28, 2013 a plan in which only an insurance agent and his secretary participated (the insurance agent-secretary plan) was subject to the termination insurance provisions (PBGC Opinion Letter 76-106; PBGC Opinion Letter 76-61). Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now