PBGC Covered plan with funding deficiencies

[Guest sueczer]

Is there anything an employer can do who simply cannot meet their funding deficiencies? They have two year's deficiencies and they want to explore the possibility of contacting the IRS to ask for clemency regarding the 10% excise taxes? They feel that the plan would be better served if these excise taxes were deposited into the plan to meet minimum funding. They want to know if there is any such program the IRS may have for plans in such a situation. Given the economy, they can't be the first small business who can't meet minimum funding.

Benefits have been frozen. They do not have enough assets in the plan to cover all benefits, even with the owner waiving his benefit if the plan were terminated. They do not want to go through distress termination and do not have the funds to even pay an ERISA attorney to help them through this. They have not applied for a funding waiver since that is so costly.

Anybody have any solutions, or an IRS contact?

[Effen]

If things are that bad, why don't they want to go the distress route? Just make a phone call to the PBGC and they will help walk them through the process.