Funding Deficiency

[nancy]

Does anyone know the IRS' current position on terminating a plan that will have a funding deficiency for 2008? We have a couple of plans that will terminate as of 12/31/08 because the sponsor will no longer exist. There is a minimum contribution under PPA for 2008 but neither sponsor can make the contribution. The PBGC will be taking over one of the plans but the other is husband and wife who will waive all benefits necessary. I know you cannot waive benefits in order to avoid minimum funding.

[SoCalActuary]

Does anyone know the IRS' current position on terminating a plan that will have a funding deficiency for 2008? We have a couple of plans that will terminate as of 12/31/08 because the sponsor will no longer exist. There is a minimum contribution under PPA for 2008 but neither sponsor can make the contribution. The PBGC will be taking over one of the plans but the other is husband and wife who will waive all benefits necessary. I know you cannot waive benefits in order to avoid minimum funding.

You did not specify whether the owners of the defunct sponsor will carry any personal liability for debts of the sponsor. You might have a situation where you don't care about the deficiency.