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Money Purchase Plan


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Hi, 

One of the terminating plan there are few participants with balance in the MPP source, this was from the pervious plan.  The plan has elected for optional, so if a participants does not take action can the plan sponsor direct to have the funds rolled over to an IRA account for the ones who have balance in the MPP source? or should it be an Annuity? 

Thanks 

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MPP source is subject to QJSA rules, so w/o participant waiver/consent and spousal consent, if applicable, you must purchase an annuity. That's why clear communication, forms and follow up are so important. 

If you tell someone, hey, if you don't return your properly completed forms, then instead of getting that $20,000 portion of your account you'll get $25/month 10 years from now when you're 65, they'll likely respond. 

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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2 hours ago, BG5150 said:

I think the PBGC will take the funds

Great point! I know that on a DB termination PBGC considers an unresponsive participant as missing, I don't know if consideration extends to DC plans or the participant must be truly missing.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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