PBGC Plan Term

[JAY21]

I was reviewing some PBGC plan term instructions when I ran across Appendix D in their instructions. Appendix D is a model "Commitment to make a Plan Sufficient for Plan Benefits'. Does anyone know how, when and where this notice is to be used ? (see attached copy). I realize the plan cannot terminate in a standard termination unless assets are sufficient to cover all benefits but is this notice to be used when the plan "intends" to fund the plan further but has not yet done so but still wishes to start the standard termination process. Whom does it go to ? I can't find anything in the PBGC instructions as to how and when to use this notice. Thanks for any input.

PBGC_Model_Commitment_to_Fund_Plan.pdf

[JAY21]

Looks like I didn't look hard enough. The instructions to the PBGC's Form EA-S has a blurb that the enrolled actuary may include as a plan assets the value of such committment if it is made to the plan in writing and signed by sponsoring employer(s). I see no requirement that the notice be given to participants, sounds like it's more for the actuary to have something to be able to certify the EA-S form.

[chc93]

Looks like I didn't look hard enough. The instructions to the PBGC's Form EA-S has a blurb that the enrolled actuary may include as a plan assets the value of such committment if it is made to the plan in writing and signed by sponsoring employer(s). I see no requirement that the notice be given to participants, sounds like it's more for the actuary to have something to be able to certify the EA-S form.

This is our understanding. We've done this on a couple of plan terminations, and didn't have any problems. The commitment was signed before the EA-S was signed. Sort of a "mandatory" receivable contribution, that can be counted as plan assets, I guess. Also, we used the PBGC model that you attached. And we didn't give a notice to participants about this.