PBGC Coverage determination for a financial firm

[Jakyasar]

Hi

I want to check others' experience on time frame and expectations for getting a PBGC coverage determination.

Applied for determination on PBGC coverage beginning of March 2022 for a financial company.

Was contacted for additional information multiple times during March and provided everything they asked for. Last communique was on 3/31/2022.

Haven't heard from PBGC by mid-April so started following up multiple times and the responses I have been getting are:

"We are working on the request for an opinion letter for the proposed plan.   I do not have an estimated date that a letter will be issued."

"We still don’t have an estimated date for issuance of an opinion letter.  We’ll let you know when we do." This one was last week.

Anyone had a recent experience?

Client is anxious as this is for 2021.

Thanks

[Bri]

I had a 3-week turnaround back in January for a new plan, but then a February submission is still in their pile.

[tymesup]

I had one that lasted over four months

[Hojo]

Not to go off topic too much, but why the anxiety?  Set the plans up assuming non-coverage.  Make deposits.  If they are covered, then great, you can deposit an additional $35k or so and deduct.  Amend your return and they're done.

[Jakyasar]

There is no anxiety, just frustration on how long it is taking.

[acm_acm]

On 5/18/2022 at 12:42 PM, Jakyasar said:

There is no anxiety, just frustration on how long it is taking.

From above: "Client is anxious as this is for 2021."

[Jakyasar]

Ok, I thought you mentioned me as anxious.

Yes, we are already proceeding with the 6% limit and the client will bite the bullet and stay with 6% deduction for 2021. No idea when we will get a determination from PBGC. But I bet that they will not be shy about imposing late filing interest charges once they determine the plan will be covered wayyyy after 10/15 deadline.

[Jakyasar]

Hi all

An update.

Finally got the determination from PBGC as NOT covered. Based on all the information they asked for (and they did ask a lot), they determined that this particular financial company is a professional entity due to the owner's credentials as well as other criteria.

It took them 5 months to provide the determination.

I guess never assume is the morale of this story.

Just sharing.

[david rigby]

17 minutes ago, Jakyasar said:

... a professional entity due to the owner's credentials as well as other criteria.

In advance, consider how this status might change if credentials change (quit, die, retire, etc.)  

[Jakyasar]

Hi David

Yes, it is something that one needs to alert PBGC with any changes (hopefully the client will let us know). PBGC letter is very clear on that.

Good point though.