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non-cooperative participants in a terminating DB plan with >$5,000

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This plan is terminating and there are several DB participants who will not complete their distribution forms.  It is a PBGC plan.  Two participants are still employed and so I think they can be coerced.  The other terminated a year ago.  All have $5,000 to $7500 balances.  I'm told by the actuary that no insurance company will quote on something that small and that completing the form is the only option.  Well if they won't, then what?  We are told their balances may not be transferred to IRA, the PBGC or state unclaimed funds.  The plan sponsor was acquired and the acquiring company has a 401(k) plan, but certainly spousal consent would be needed to transfer the funds.

About all I could tell the sponsor to do was "threaten" in a nice way the two still employed to fill out their forms and go to the home of the terminated participant and be a nuisance.


Thank you,


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2 options are available:

1) The PBGC missing participants program now covers nonresponsive participants so you could transfer the funds that way.  This is the easiest option.

2) There are companies that will bid on one or two benefits, not many, but they exist.  Go to one of the de-risking firms out there and they can help you.  If you need help finding one, let me know.


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