PBGC’s Modified Missing Participant Regulations Now Apply to DC Retirement Plans
The Department of Labor’s Pension Benefit Guaranty Corporation (PBGC) issued final regulations in late December 2017 that modify existing guidance on missing participants and beneficiaries in terminating qualified retirement plans. These revised final regulations broaden guidance that formerly applied to single-employer defined benefit (DB) pension plans. The broadened guidance will now also apply to defined contribution (DC) plans, to multiemployer (union) plans covered under PBGC’s pension insurance program, and to certain other DB plans not previously covered.
The general purpose of this PBGC program is to assist participants and beneficiaries in securing retirement plan benefits to which they are entitled when a covered plan terminates. It also is of assistance to plan administrators attempting to dispose of assets that such missing individuals have not claimed.
The regulation notes that the final rule generally applies after 2017. The effective date as noted in the final rule will be 30 days after the date of publication in the Federal Register.
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