Guest JBeck Posted August 10, 2003 Posted August 10, 2003 Sponsor of single employer plan maintains a defined benefit plan subject to the PBGC rules. The sponsor sells the assets of the company in a legit sale (company going broke). Sponsor's corporation is still in existence after the sale and continues to maintain the plan. All employees are terminated as of the sale date from the sponsor's corporation. Sponsor will in the future probably miss a quarterly payment, and have to notify the PBGC, then terminate in a distress termination. My question is what rights does the PBGC have to go after the personal assets of the sole owner of the corporation assuming the sale of the company was at arm's legnth and legit. It appears to me that the PBGC can just go after the assets of the corporation.
david rigby Posted August 11, 2003 Posted August 11, 2003 If the plan is in danger, the PBGC will challenge the sale of the assets. The buyer will probably wish he/she had some legal advice. 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.
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