Jump to content

QJSA Annuity-Terminated Plan with Unresponsive Participants


Recommended Posts

In a DC plan subject to the QJSA requirements (merged MP assets) that has terminated, if a participant is unresponsive or cannot be located, what is the best option for account balances of over $5,000?  Are there insurance companies that will set up a QJSA without a participant's signature?     Or is it allowable/easier transfer the funds to the PBGC under their Missing Participant Program?    Thanks for any input.  


Link to comment
Share on other sites

Insurers can and do write QJSA contracts for missing participants - terminating DBPs are faced with that a lot - but those are pieces of larger contracts. I think you'd have a very hard time finding an insurer to write one contract, but I don't know that. 

Yes, I think turning over to PBGC would be the best alternative and, if this were a DBP in the same situation, would likely be the only viable alternative. In the DBP space, the PBGC views an unresponsive participant as a missing participant, but I don't know if they make the same leap for DC plans.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services


Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...