The Pension Benefit Guaranty Corporation (PBGC) is expanding its Missing Participants Program, previously only available to terminated PBGC insured single-employer defined benefit (DB) plans, to include terminated defined contribution (DC) plans and small professional service DB plans. The expanded program will be available to those plans terminating on or after January 1, 2018. Terminating DC plans will have the option of transferring missing participants’ benefits to the PBGC in lieu of establishing an IRA at a financial institution, which would levy ongoing maintenance fees and/or distribution charges. Instead, PBGC will pay out benefits with interest when participants are located. Individuals can more easily locate and access their retirement benefits post plan termination, as missing participant names will be added to the existing online directory.
www.planadvisesr.com; December 21, 2017.