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PBGC plan termination and DRO


pensionreview

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A plan that is covered by the PBGC is terminating. The plan is in the 60 day review period with the PBGC. One of the participants has a DRO that has not been signed by the court yet.  If the court does not sign the DRO by the distribution deadline how do we handle the distribution to the participant with the DRO?

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Be aware that the distribution deadline is not the end of the 60 day review period. But you have a valid question because the circumstance you describe can arise at the distribution deadline even if that deadline is 180 days later than what you are implying. When there are at least 30 days remaining before the actual distribution deadline I would contact the PBGC and ask for an extension.

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Has someone reviewed a draft of the DRO?  If not, and the draft requires modification, it may difficult to determine how much additional time is needed.

 

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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