BG5150 Posted April 19, 2021 Report Share Posted April 19, 2021 Money Purchase Plan terminated 3 years ago. Only accounts left are for lost participants and each has over $5,000. Record keeper will not cash the accounts out and move to an IRA because of the spousal consent issue. What can the sponsor do to get this plan closed up? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
C. B. Zeller Posted April 19, 2021 Report Share Posted April 19, 2021 Would they be eligible to use the PBGC's missing participant program for DC plans? https://www.pbgc.gov/prac/missing-p-defined-contribution Luke Bailey 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
CuseFan Posted April 19, 2021 Report Share Posted April 19, 2021 Exactly - that's why it's there. Luke Bailey 1 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com Link to comment Share on other sites More sharing options...
BG5150 Posted April 19, 2021 Author Report Share Posted April 19, 2021 So what happens to the J&S attached to the balances? Does the PBGC enforce it when they eventually pay out the benefit? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Peter Gulia Posted April 19, 2021 Report Share Posted April 19, 2021 The PBGC provides (if the distributee’s benefit is more than the ERISA § 203(e) amount [$5,000]) a joint-and-survivor annuity, unless the distributee elects, with the spouse’s consent, a different form of distribution. Pages 60812-60813, 60828-60829 https://www.govinfo.gov/content/pkg/FR-2017-12-22/pdf/2017-27515.pdf For the forms and instructions, https://www.pbgc.gov/prac/missing-participants-program. Luke Bailey 1 Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
Peter Gulia Posted April 20, 2021 Report Share Posted April 20, 2021 And EBSA's Field Assistance Bulletin No. 2021-01 (Jan. 12, 2021) interprets relevant law to allow a transferring plan’s administrator to “pay [the PBGC’s] fee from the transferred account, unless the plan terms prohibit such payment.” https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/guidance/field-assistance-bulletins/2021-01.pdf Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
BG5150 Posted May 7, 2021 Author Report Share Posted May 7, 2021 So, bad news. We cannot use the PBGC program for this because the date of the plan termination is October 2016. The program is only available for plans terming on or after 1/1/2018. (I thought it was October 2017, but still out of luck...) Any other thoughts on how to get around the spousal consent issue? Because these people are missing, we can't even be sure if they are married or not. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Bird Posted May 7, 2021 Report Share Posted May 7, 2021 Maybe the plan wasn't really terminated since it took so long...terminate it again? Ed Snyder Link to comment Share on other sites More sharing options...
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