Jump to content

PBGC Missing Participants Program


Recommended Posts

I terminated a Cash Balance Plan in 2018.  We were unable to locate two participants so their account balances were sent to the PBGC under the missing participants program.  The PBGC audited this termination and sent me and email stating that the payments made for the two missing participants was not calculated correctly.  Both individuals had benefit values in excess of $5,000.  I was told I needed to use their standard calculation method applicable to traditional defined benefit plans.

Is this correct?

If the lump sum value was less than $5,000 would the account balance be the correct amount to send to the PBGC.

Thanks,

Link to comment
Share on other sites

After reading some posts on the message board I realize why the PBGC method of calculating the payment is based on the monthly annuity rather than the hypothetical account balance.  Any insurance company would do the same based on a deferred annuity with lump sum options.

 

Link to comment
Share on other sites

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 account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...