deceased majority owner

[SheilaD]

I have an underfunded PBGC plan where the owner has just passed away. The sons are taking over the business and would like to terminate the plan. The widow would like to waive her benefit to the extent needed to terminate the plan and pay out all others. Although I understand why the family would like to take this approach I'm not sure that it would be allowed. She was never employed by the plan sponsor and will not be an owner in the new situation. Even if they made her a 51% owner, can a beneficiary waive as opposed to an actual participant? On their behalf I will probably write to the PBGC but I wondered if anyone had any thoughts or had encountered this situation.

thank you.

[Andy the Actuary]

You may wish to check the ownership attribution rules.

[SheilaD]

With regard to the attribution, I presumed the attribution stopped upon the death of the owner. However, the situation has changed. I am now informed that the sons are the beneficiaries and they will be taking over the company. So my question is now, can a beneficiary who is a majority owner waive benefits due to him/her (as opposed to those due to him as a participant). I will poke around the PBGC and see if I can find anything. Thanks for any thoughts.

[Andy the Actuary]

I will poke around the PBGC and see if I can find anything. Thanks for any thoughts.

Careful in your poking around the PBGC that you don't get poked back!