PBGC NOIT required for offset participant?

[jane murray]

A defined benefit plan that is part of an offset arrangement with a profit sharing plan.  The defined benefit plan is terminating.  In the case of participants in the defined benefit plan who are totally offset as of the plan termination date, is the plan administrator required to provide a copy of the Notice of Intent to Terminate to these individuals that are totally offset and will not have a benefit payable from the defined benefit plan? 

[My 2 cents]

First of all, it should not be a matter of concern that one will be giving a NOIT to a plan participant who will ultimately be given a notice of plan benefits showing that they will receive nothing from the terminating defined benefit plan.  They must already have been made fully aware of what they will get from the defined benefit plan and the defined contribution plan that is used to determine the offset.  Giving someone a notice that a plan that will pay them nothing is terminating cannot make morale any worse.

It is my opinion that even those offset to zero under the defined benefit plan are indisputably participants in the defined benefit plan (since they would meet both the definition of eligible employee and would have completed the age and service requirements for participation), and as such must be given NOITs.  AND notices of plan benefits (in due course), even if the benefit shown will be $0.

[mstick]

Agree with 2 cents. Should also include terminated vested participants who as a result of offset have nothing due to them under the defined plan assuming that there is still something due them from the defined contribution plan.