BH1528

What would happen if the TPA and the recordkeeper both issue a 1099-R for the same distribution?

I have a terminating DB Plan covered by the PBGC that recently paid the liability to the PBGC through the missing participants program. I had confirmation from the PBGC that the plan could use the missing participants program. The participant just reached out claiming that their paperwork just came in the mail (doubtful as it was sent a few months ago, and again as a follow up). They are looking to roll over their lump sum into an IRA. What would the correct steps be? Could the plan sponsor ask the PBGC for the money back to pay the participant? Or does the participant have to wait until all of the paperwork is finalized and then seek payment from the PBGC?

@david rigby The search would have returned if the participants were deceased. The participants are US citizens but possibly moved to another country? I had not thought about that or if the search would look into that. Thank you. @ishi Would we be able to use the missing participant's program? By definition, I am not sure if we can consider them missing as we do have an address and contact info: "In general, a distributee is considered missing if, when the plan closes out, the plan doesn’t know the individual’s location (e.g., if a notice from the plan is returned as undeliverable). For purposes of these instructions, we use the term “Unlocatable” to describe a distributee in this situation.P 1F 2 P An individual is also considered missing if: • The individual’s benefit was subject to a mandatory cash-out under the plan’s terms and the individual did not return the necessary paperwork providing instructions about how the payment should be made (e.g., by check or as a direct rollover to an IRA); or • The individual did not accept a lump sum payment, whether elected voluntarily or subject to mandatory cash-out (see “Unaccepted lump sum payments” below). We use the term “Unresponsive” to describe a distributee in either of the two situations noted immediately above. Note that a distributee may be both “Unlocatable” and “Unresponsive.”" It seems they would be considered Unresponsive and/or Unlocatable.

We are in the process of terminating a PBGC covered DB Plan. There are participants who we have not been able to get in contact with and have gone through a provider to do an employee search. We have exhausted all forms of communication (mail, phone, email) outside of showing up at the addresses provided and have not heard a thing. The phone numbers are disconnected or goes to a full mailbox of someone that is not the participant. The participant's lump sum value is above the $5K automatic cash out and all annuity providers we have reached out to have said that they will can't take on such a small amount. This is holding up the termination of the plan, what possible solutions are there to this?

There is an employee who has an accrued benefit who is over 70.5 and works seasonally. The company does not usually know if he will be coming back for the next year until ~March or April. He has not resigned from the company or retired but doesn't work the last few months of the year. Should he begin receiving an RMD?