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PBGC Proposes Expansion of Missing Participants Program

The Pension Benefit Guaranty Corporation (PBGC) is proposing an expansion of its Missing Participants Program to cover terminated 401(k) and other defined contribution plans and certain defined benefit plans that the program does not now cover. Currently, the program is open only to PBGC-insured single-employer plans.

Under the proposal, instead of establishing an IRA at a financial institution for each missing participant account, plans would have the option of transferring benefits to the PBGC, which then would hold the money, add the missing participant to its online searchable database and periodically search for the participant. Participant accounts would not be diminished by ongoing maintenance fees or distribution charges and would be paid out with interest.

The PBGC also is proposing changes to the way the program works for PBGC-insured single-employer plans. The changes relate primarily to:

  • how plans determine the amount of money to transfer to the PBGC;

  • better protection of key features of a participant's benefit (e.g., early retirement subsidies); and

  • reducing the burden of transferring benefits to the PBGC.

The expanded program would cover PBGC-insured multiemployer plans that close out and certain DB plans the PBGC does not insure; for instance, small plans sponsored by professional service organizations. The PBGC expects limited usage by these plans.

The PBGC expects that the expanded program will be implemented in 2018, after receiving public comments and publishing the final regulation.

Comments Accepted


The PBGC will accept comments on the proposed rule by Nov. 21, 2016. Comments may be submitted by the following methods:



  • a fax to (202) 326−4112; and

  • by mail or hand delivery to: Regulatory Affairs Group, Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street, NW, Washington, DC 20005−4026.

All submissions must include the Regulation Identifier Number for this rulemaking (RIN
1212-AB13).