Schedule SSA--in a db plan scenario, how should (or should they) the beneficiaries of deceased participants be reported?

[gle3186]

This issue is in regard to a DB plan. The SSA instructions refer to termination of employment and break in service years, and say to delete a participant when they cease to be entitled to a benefit. The references to employment would seem to refer only to an employee participant, and when someone dies they are no longer entitled to a benefit -- although one or more beneficiaries may be. However, Form 5500 Item 7 asks for a count of deceased participants whose beneficiaries are receiving or are due future benefits.

Upon death of a participant with a beneficiary due to receive future benefits, should we:

1. delete the participant from Schedule SSA if previously reported, and not to add any beneficiary for SSA reporting. So even if death benefits are still payable, the participant has been deleted and no beneficiary added;

2. when a participant dies prior to commencing benefits, if they have been reported previously on Schedule SSA, they are left on, and if they have not been reported they are added. No beneficiaries are added. When the LAST death benefit is paid out to a beneficiary, the participant is deleted from SSA on the next report. Under this process, the deceased participant remains on SSA and SSA "Notices" would be mailed to the deceased participant until ALL death benefits had been paid out. A difficulty with this process is the the beneficiary records have to be linked to the participant's record;

3. delete the participant and add the beneficiaries to SSA. This would allow SSA notices to go out without linkage being required to the deceased beneficiary for each participant. But this method does not seem to be called for by the instructions; or

4. Something else?

Thanks for any guidance.