PBGC Form 10 question

[AndyH]

Frozen DB experiences 21% of it's active participant count transferring to a sister company (member of controlled group) not covered by the plan. Is this a 20%+ drop in the active participant count, requiring a PBGC Form 10 filing?

[david rigby]

Probably yes. Read PBGC reg. 4043.23 (including definition of "active participant") and instructions for Form 10.

[AndyH]

I did. It includes anyone "receiving compensation for work performed". In my case, the plan sponsor is the parent corporation. Some of the people in question transferred to another company in the same controlled group, so they are arguably being paid by the same employer, within the meaning of 414 that is. Disagree?

(I searched the PBGC Blue Books and found nothing on point. I think this would be a good question.)

[david rigby]

I did not see a reference to 414 (but I could be mistaken). The reg refers to active participants in the plan. Since that reg was probably written long before any bureaucrat anticipated the concept of a frozen plan, my hunch is they were thinking "actively accruing benefits".

If I get a chance, I'll ask the question next week.