PBGC Lifts Threshold for Plan Termination Audits

The nation’s private pension plan insurer has raised the participant threshold for plan termination audits.

Specifically, the Pension Benefit Guaranty Corporation (PBGC) has revisited their audit guidelines so that, going forward, only plans that terminate with more than 1,050 participants will be automatically selected for audit (the previous threshold was 300). 

All others would just be subject to the random selection for audit.  The PBGC website has already been updated to reflect this at https://www.pbgc.gov/prac/terminations/standard-terminations 

And while you’re there, you might want to check out their list of common errors that PBGC finds in standard termination audits.  It’s at https://www.pbgc.gov/prac/terminations/standard-terminations