Is this plan covered by PBGC?

[Jakyasar]

Hi all

MD office, less than 10 employees

Owner also owns 2 pizza restaurants with a few employees.

If a DB plan is set up just for the MD office, is it covered by PBGC?

If a DB plan is set up with the pizza restaurants as additional employers but the MD office being the plan sponsor, is this DB plan covered by PBGC?

Thank you

[Bri]

The PBGC's website uses the example of an attorney owning an insurance agency - just because the guy in charge is a lawyer doesn't mean the nature of the business itself gets you a pass. 

Like the plan in their example, I gotta figure the PBGC is going to cover a plan for pizza restaurants, regardless of if a doctor owns it.  But I would suspect you'd be okay if the plan didn't cover the pizza guys, and only the medical office.

[Jakyasar]

Hi Bri

I am aware of the first part and thank you.

It is the second part that I am thinking about.

[CuseFan]

If the pizza shop was not covered, then I think you are PBGC-exempt.

If only the pizza shop covered, then I think clearly not PBGC-exempt (but this wouldn't make sense for doctor/owner as (s)he probably gets little or no earned income from that).

If both entities are covered, I would guess not PBGC-exempt. If that is the goal, maybe make the pizza shop the sponsor and the medical practice a participating affiliated employer?

[Bri]

Too bad the actuarial costs for a second plan just for the pizza folks would probably outweigh the savings in PBGC premiums by not covering the doctor's office.

Now please tell us the doctor's specialty is as a heart surgeon, selling pizzas on the side!  Bonus points if one is in the building next door.