Should I wait to file the Post-Distribution Certification (PDC) until all assets have been distributed?

No. The PDC is due 30 days after you complete distribution in satisfaction of all plan benefits. The PDC includes a plan administrator's certification that assets in excess of those needed to satisfy benefit liabilities have been or will be distributed in accordance with applicable provisions of ERISA and implementing regulations. However, under a new penalty policy adopted in March 1997 to provide penalty relief, PBGC will not assess a penalty if the PDC is filed within 90 days after the deadline for completing the distribution.

What are the premium payment rules regarding terminating plans? Why are payment notices sometimes sent to terminated plans?

The obligation to pay premiums does not cease immediately on a plan's termination date. The obligation to file premium forms and payments continues until the end of the plan year in which (1) plan assets are distributed in satisfaction of all plan benefits or (2) a trustee is appointed under ERISA Section 4042. This means that a full year's premium must be paid through the plan year in which one of these occurrences takes place. As a result, terminated plans may receive Past Due Filing Notices if a required premium filing is missing or Statements of Account if a required premium is late or insufficient.

Why do I continue to receive premium filing booklets for my terminated plan, and how do I stop this mailing?

Terminated plans may still owe premiums, as described in the answer to Question 17, and, therefore, may still receive premium filing booklets for this purpose. If, however, you believe no further premiums are due for your plan, contact PBGC's premium payer customer service representatives at 1-800-736-2444 (or at 202-326-4242 if you are in the local Washington, DC area). For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to the appropriate number in the preceding sentence. If there are no further premiums due for the plan, the booklet mailing will stop with the following year's mailing.

How does PBGC decide which standard terminations to audit?

Plans are randomly selected from among all terminations completed during the target period, to meet our statutory requirement of a statistically significant sample. PBGC also may audit a plan when we have reason to believe there may be a problem (for example, when we receive a complaint by plan participants or a plan practitioner).

Does PBGC nullify the termination if it finds a distribution error during the standard termination audit?

PBGC requires that participants and beneficiaries be made whole. For example, if participants did not receive all of the benefits to which they were entitled, the plan administrator must distribute additional benefits, or if participants were not given all of the options available to them under the plan, the plan administrator must provide those options and honor any changes requested. If the plan administrator does not cooperate in correcting errors, PBGC has the authority to nullify the termination.

How do I close out my plan if I can't locate every participant and beneficiary?

PBGC's Missing Participants Program, created by the Retirement Protection Act of 1994, locates people owed benefits from PBGC-insured defined benefit pension plans closed out through a standard termination. An employer choosing to terminate a fully funded pension plan must distribute all plan benefits to participants and beneficiaries before completing the plan's termination. If someone cannot be found after a diligent search, the plan administrator must either purchase an annuity from a private insurer in that person's name and provide information on the missing person and insurer to PBGC or transfer the value of the person's benefit to PBGC's Missing Participants Program. Click here for Pension Search fact sheet on PBGC's Missing Participants Program.

My plan isn't terminating, but I have a number of "missing participants." May I turn their benefits over to PBGC?

No. ERISA limits PBGC's Missing Participants Program to terminated plans. Ongoing defined benefit plans and plans that aren't covered by PBGC are not eligible for this program.

Is a diligent search required if an annuity is purchased for a missing participant?

A diligent search is required by law for any missing participant, whether you pay a benefit directly to PBGC for the participant or purchase an annuity.

What requirements must be met for a diligent search before money can be paid to PBGC?

A plan administrator frequently learns a participant or beneficiary is missing after sending the Notice of Intent to Terminate to the person's last known address. After learning that the person is missing, the plan administrator is required to conduct a diligent search. A diligent search includes seeking out any beneficiaries of the missing participant whose names and addresses are known to the plan administrator. It also includes use of a commercial locater service, such as a credit reporting firm. The participant may not be charged for the search. The plan administrator must complete the diligent search before transferring money to PBGC for the person's benefit.

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