Q: What is a PBGC-initiated termination?

A: The law provides that PBGC may terminate a pension plan, even if a company has not filed to terminate a plan on its own initiative, if:

• the plan has not met the minimum funding requirements;
• the plan cannot pay current benefits when due;
• a lump sum payment has been made to a participant who is a substantial owner of the sponsoring company; or
• the loss to PBGC is expected to increase unreasonably if the plan is not terminated.

PBGC must terminate a plan if assets are unavailable to pay benefits currently due.

^ Top

Contact info for PBGC-initiated terminations

Mailing address:

Pension Benefit Guaranty Corporation

1200 K Street, N.W., Suite 270

Washington, DC 20005-4026

Phone: 1-800-736-2444, Ext. 4100, or (202) 326-4242

^ Top