COBRA PBGC Recipients

[Guest JWOL9]

ARRA amended ERISA sec. 602(2)(A) to add that if a person has a nonforfeitable right to a benefit to be paid by the PBGC as of the date of the qualifying event, the maximum period of coverage shall extend to the earlier of the death of the participant or December 31, 2010. This is ARRA 1899F. What is odd about this provision is that there is no requirement that the PBGC benefits be attributable to the sponsoring employer. Is this a drafting error, or did Congress really intend to say that when an employee receives benefits from PBGC as a result of Employer A's underfunded pension, that, when employee loses coverage under Employer B's group health plan, that Employer B must potentially offer coverage to the employee for a longer period of time?