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Defined Contribution to Defined Benefit Rollovers

The Pension Benefit Guaranty Corporation (PBGC) is publishing a final ruling for transferring DC plan accounts into a DB plan. The rule provides protections for such rollover amounts from PBGC maximum benefit limitation rules, removing the fear that amounts rolled over would suffer due to guarantee limits should PBGC need to pay benefits. If a DB plan terminates, the PBGC has a maximum benefit above which it will not pay; the rollover benefit derived from employee contributions (originating in the DC plan) is not subject to that maximum.

www.planadviser.com; November 24, 2014.