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PBGC Majority Owner Waiver


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If a PBGC plan is terminating with a majority owner waiver with spousal consent (assume the waiver and consent meet PBGC conditions) how is Schedule EA-S completed with respect to assets and liabilities?

Assume without the a waiver the liabilities are $500K and assets are $400K.

COVID killed this business model and it has not recovered and prospects for recovery are grim. Very small Cash Balance Plan.

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You would treat it as a reduction to the value of benefits expected to be paid out. The instructions for the standard termination filing discusses the election to forgo receipt of benefits (don't call it a "waiver") for line 7 of the EA-S, under the heading of "Plan Amendments."

Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance.

Corey B. Zeller, MSEA, CPC, QPA, QKA
Preferred Pension Planning Corp.
corey@pppc.co

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