PBGC filing after spin off

[dmb]

A multiple employer plan (calendar year, two employers) is spinning off one employer effective 1/1/07. Effective 1/1/07 there will be two single employers each with its own DB plan. For 2006 the multiple employer plan had over 500 lives. The assets will not be transferred until April or May. Is the 2007 PBGC 1-ES required to be filed for the original employer?? How should participant counts be determined for the final Form 1 filings due in October?? Does the fact that the assets have not been transferred yet have significance?? Thanks.

[SoCalActuary]

Without doing the research, here's my take:

A. This approach is based on the premise that the spinoff occurs when the assets are transferred.

You file as of 1-1-07 as a single plan.

Once the spinoff occurs, you file for a refund of the unused premium for the single plan.

Then you file for a new premium amount on the spun-off plan, on a pro-rata basis.

B. This approach is based on the premise that the spinoff occurred 1-1-07 with the appropriate

documentation in place. It presumes that you treat the assets to be transferred on some accrual

basis, so you "know" the asset values of the two separate plans as of 1-1-07, but you are just waiting

to transfer the funds.

You file as two separate plans, including the estimated payments if needed, assuming that one of the

plans still has over 500 participants.