PBGC seeks more information on missing participants

PBGC seeks more information on missing participants

The Pension Benefit Guaranty Corp. (PBGC) is seeking to collect additional information from terminated plans participating in the agency’s missing participants program. The program is mandatory for PBGC-insured single-employer and multiemployer defined benefit (DB) plans and optional for defined contribution (DC) and small professional-service DB plans.

PBGC currently requests information from participating plans so the agency can search for missing participants and provide benefits to any who are found. To ensure proper tax withholding on benefit payments, PBGC intends to request two new pieces of information:

  • For DC plans with Roth accounts, a breakdown of the qualified and nonqualified Roth amounts transferred to PBGC, and if nonqualified Roth amounts are transferred, the date of the first Roth contribution
  • For DB and DC plans, identification of any portion of a participant’s benefit that’s treated as foreign-source income, and for DB plans only, how that portion was determined

PBGC’s expanded information request is currently awaiting authorization from the Office of Management and Budget. Comments are due by Jan. 7, 2021.

Ellen Stone
by Ellen Stone

Principal, Mercer’s Law & Policy Group

Margaret Berger
by Margaret Berger

Partner, Mercer’s Law & Policy Group

Brian J. Kearney
by Brian J. Kearney

Principal, Mercer’s Law & Policy Group

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