DB Termination--Majority Owner Forego Benefits

[Randy Watson]

Can a majority owner who is in pay status "forego" benefits in connection with a defined benefit plan termination?

[Lou S.]

PBGC plan? We had one like this several years ago and niether the PBGC nor the IRS had a problem with the majority owner waiving along with spousal consent also waiving. But like I said it was several years ago and their positions may have changed.

The plan was also underfunded and in employer was in bankrupcy at the time so that might have something to do with the PBGC & IRS both approving it.