pbgc coverage

[Gary]

alleged details.

adult children own a company 50/50. they were minor children within past 5 yrs.

parents are employees and only participants of pension plan.

As I present it:

since they were minors within past 5 yrs then parents would have had constructive ownership (under 1563(e)) within past 5 yrs and have been substantial owners under erisa 4021(b) and excluded from pbgc coverage at this point.

Now back to constructive ownership.

Children: Child A and Child B

Parents: Parent 1 and Parent 2

So parent 1 can own what child a owns and parent 2 can own what child b owns so they each can own 50% and be substantial owners.

That is, parents 1 and 2 cannot own the 50% child a owns due to fact that ownership cannot be passed to parent 1 and then again to parent 2 as double attribution.

If each child owns 50% then each parent can constructively own 50%. That is, each parent owns what o

Make sense?

thanks

[SoCalActuary]

Assume that these are the parents/children within one family.

Parent 1 is attributed ownership of Child 1 and Child 2. If this is community property state, then Parent 1 is attributed ownership of Parent 2.

Same with Parent 2.

Child 1 is attributed ownership of Parent 1 and Parent 2. Same with Child 2. Child 1 does not have attribution of Child 2 ownership, and vice-versa.