Terminating PBGC Covered Cash Balance Plan

[ac]

We are in the process of distributing benefits from a small Cash Balance Plan that is covered by the PBGC.  There are two participants with lump sum benefits less than $5,000 that cannot be located.  The Plan allows for automatic rollover of small benefits.  Can we rollover the lump sum to an IRA for the two participants that cannot be located or do we have to go through the missing participant program with the PBGC? 

[Effen]

PBGC missing participants

[Bri]

Does it matter if it's not a terminating plan?

[Effen]

Oh, sorry.  I just assumed it was but you are correct the OP didn't say that.  I think the PBGC missing participants can only be used by terminating plans.  

[CuseFan]

Ongoing plan = auto rollover. Terminating plan = turn over to PBGC under missing participant rules. And to the consternation of many, if you have unresponsive participants in a terminating DBP with PVABs/CB accounts less than $5,000 that do not return election forms then you cannot auto rollover and must treat as missing participants and remit benefits to PBGC.

[Bri]

actually, my bad, it's explicit in the title of the post, now that I look back up the screen.....