Table of Contents
PBGC has established a Missing Participants Program for single-employer defined benefit pension plans subject to Title IV of ERISA. This program helps terminating plans distribute Missing Participants' benefits and helps Missing Participants receive their benefits. A Missing Participant is a participant or beneficiary (including a participant's spouse or alternate payee) entitled to a distribution under a terminating plan whom, after a diligent search, the plan administrator has not located as of the date the plan administrator pays the individual's designated benefit to the PBGC (or distributes the individual's benefit by purchasing an irrevocable commitment from an insurer). In the absence of proof of death, individuals not located are presumed living.
Note: You may use the PBGC's Missing Participants Program for a participant or beneficiary only if you are unable to locate the person after a diligent search (see Step 1, below). The mere fact that a person fails to return an election form or cash a check does not mean the person is a "Missing Participant." Unless a person is a "Missing Participant," you must, in accordance with all applicable requirements under the Code and ERISA, distribute plan assets in satisfaction of all plan benefits by purchase of an irrevocable commitment from an insurer or by distributing benefits to the person in another permitted form.
In the following, the terms "you" and "plan administrator" are used interchangeably.
You must follow specific steps in distributing the benefits of Missing Participants on plan termination. These steps are briefly summarized below. Sections II and III below provide detailed instructions.
Step 1: Diligent Search
=> Conduct a diligent search for all participants and beneficiaries
whom you could not locate. "Diligent search" is defined in 29 CFR §
4050.4. A diligent search must -
Step 2: Method(s) of Distribution
=> Determine for each Missing Participant whether you will
distribute the benefits of that Missing Participant by purchasing an
irrevocable commitment from an insurance company or by paying the value
of the Missing Participant's benefit to PBGC.
Step 3: Deemed Distribution Date
=> Select a deemed distribution date and calculate the value of the
Missing Participants' benefits as of that date using the rules in
PBGC's Missing Participants regulation (see 29 CFR §§ 4050.5 and
4050.12). The deemed distribution date must be no later than the
distribution deadline, including extensions, under 29 CFR § 4041.28(a),
and no earlier than the date when distributions have been completed for
all other participants and beneficiaries (including Missing
Participants for whom you provide annuities). (See section III.A.
Part II.3.c., below.)
However, there is only one deemed distribution date for any plan filing. If an extension is granted, and with it deemed distribution date is changed, then the extension date is the deemed distribution date for the plan filing. If an amended standard termination is filed for the plan, the same deemed distribution date will apply to the amended filing.
Step 4: Forms and Payments
=> Complete Schedule MP and the applicable attachment(s) and send
them to PBGC with the Post-Distribution Certification. These forms must
contain information required by PBGC to identify and locate Missing
Participants to whom it will pay benefits, to compute and pay those
benefits, and to direct individuals for whom the plan purchased
annuities to the appropriate insurance company.
If you are sending payment to PBGC for one or more Missing Participants, you may submit a check with your Missing Participant Payment Voucher or arrange for a wire transfer and indicate on your Missing Participant Payment Voucher the amount that has been transferred. See section II.D.2 for payment information. The filing deadline for Schedule MP, for the Post-Distribution Certification (Form 501), and for payment of designated benefits to PBGC is 30 days (or 60 if a timely email certification was sent) after the deemed distribution date. (See the Form 501 Instructions for more information.)
If you purchased annuities for all Missing Participants and are not paying designated benefits to PBGC, the deadline for filing Schedule MP and the Post-Distribution Certification is 30 days after the last distribution of assets in satisfaction of plan benefits (through priority category 6 under section 4044 of ERISA and 29 CFR Part 4044).
Note: PBGC may assess a penalty for late filing of Schedule MP. However, PBGC will do so only if the information is filed more than 90 days after the distribution deadline (including extensions) (see section II.H.1 of the Standard Termination Package or section C of Appendix C of the Distress Termination Package.) Also, PBGC will assess interest for late payment of amounts for Missing Participants only to the extent the payment is made more than 90 days after that distribution deadline (including extensions).This package contains (1) Missing Participant filing instructions, and (2) Schedule MP, including Attachment A (Annuity Purchase Information), Attachment B (Individual Information for Missing Participants for whom amounts are paid to PBGC), and a Missing Participant Payment Voucher to submit with payment to PBGC.
The specific rules for distributing benefits for Missing Participants are set forth in section 4050 of ERISA and in PBGC's regulation on Missing Participants (29 CFR Part 4050), which are available on PBGC's Web site, www.pbgc.gov, along with Missing Participant forms and instructions.
Note: If, after paying a designated benefit to PBGC for a Missing Participant, you are contacted by that Missing Participant, please refer the individual to PBGC's Customer Contact Center ((800) 400-7242) for payment of the individual's benefit.PBGC may assess penalties for incomplete filings. Therefore, you
should ensure that an appropriate response is provided for each item,
as follows:
PBGC will accept the original pre-printed forms, photocopies of the forms, or downloaded forms. However, Schedule MP must have an original signature. For this reason, Schedule MP cannot be faxed or e-mailed to PBGC. See II.C.3 for filing instructions for this form.
If your plan is terminating in a standard termination (or in a distress termination in which the plan is sufficient for at least guaranteed benefits and closes out in the private sector), you must file Schedule MP with PBGC if you have one or more Missing Participants. PBGC will apply this filing requirement to participants or beneficiaries who are eligible for a distribution of residual assets, voluntary employee contributions, or are entitled to a distribution after a PBGC plan audit but cannot be located, after a diligent search, at the time the distribution is to be made. See section II.C.2 with regard to distributions of residual assets, voluntary employee contributions, or after an audit, a diligent search is not required if an earlier diligent search was done and the individual was not found, i.e., the individual was determined to be a Missing Participant.
You must file Schedule MP, including Attachment A (Annuity Purchase Information), Attachment B (Individual Information), or both, as applicable. File Attachment A if the plan purchased an irrevocable commitment for one or more Missing Participants. File a separate Attachment B for each Missing Participant for whom amounts are due to PBGC. You must send payment of the total of the amounts on the Attachment B(s) to PBGC, together with a Payment Voucher.
If you file a request for an extension with PBGC later than the 15th day before the applicable deadline, you must include a justification for not filing the request earlier.
Requests for extensions must be in writing and -
Addressed to:
Pension Benefit Guaranty Corporation
Standard Termination Compliance Division
Processing and Technical Assistance Branch
1200 K Street, NW
Washington, DC 20005-4026
E-mailed to: STfilings@pbgc.gov;
or
Faxed to: (202) 326-4001
You may obtain forms and instructions from PBGC's Web site at www.pbgc.gov.
If you have any questions about Missing Participants, standard terminations, or distress terminations, or if you need copies of this Missing Participant Package, the Standard Termination Package, or the Distress Termination Package, call the toll-free telephone number at PBGC's Customer Service Center for Plan Administrators and Pension Professionals (1-800-736-2444). (TTY/ASCII users may call the Federal relay service toll-free at 1-800-877-8339 and ask to be connected to 1-800-736-2444.)
E-mail addresses:
Fax: (202) 326-4001
Each contributing sponsor and the plan administrator of a terminated plan must maintain all records necessary to demonstrate compliance with section 4041 of ERISA and 29 CFR Part 4041 for six years after the date the Post-Distribution Certification is filed with PBGC. For rules on maintaining records electronically, see 29 CFR Part 4000, Subpart E (also available on PBGC's website, www.pbgc.gov at the "Practitioners" page select "Law & Regulations" on right menu bar).
Note: If a contributing sponsor or the plan administrator maintains information in accordance with this requirement, the other party need not maintain that information.For each Missing Participant, these records must include all evidence of a diligent search and all underlying data, including worksheets prepared by or at the direction of the enrolled actuary, used in determining the amount, form, and value of the plan benefits.
Within 30 days after receipt of PBGC's written request for records or by a later date specified in the request, the contributing sponsor or plan administrator, as applicable, must make all such records available to PBGC for inspection and photocopying (or, for electronic records, inspection, electronic copying, and printout) at the location where they are kept (or another, mutually agreeable, location), or must submit copies of the records to PBGC.
If you previously filed one or more Schedule MPs for this plan, check the box immediately below "PART I." If you checked the box, provide the date(s) of any filing(s).
Note: If this filing is an amended Schedule MP, you must file an amended Form 501 (if you filed a standard termination) or an amended Form 602 (if you filed a distress termination that is sufficient for at least guaranteed benefits) unless you are using the Missing Participants Program to provide residual assets with respect to a person who cannot be located at the time residual assets are payable. See Note on p.6.1a top Enter the complete name of the plan as it appears in the plan document.
1b-c top Enter the 9-digit employer identification number (EIN) assigned to the contributing sponsor by the Internal Revenue Service for income tax purposes and the 3-digit plan number (PN) assigned by the plan sponsor.
1d top Enter the PBGC case number.
2a top Enter the name and address (mailing or Internet) of commercial locator service used. If more than one service was used, attach sheet with this information for each service used.
3a-b top
Enter the number of Missing Participants for whom irrevocable
commitments were purchased, and the number of Missing Participants for
whom amounts are being paid to PBGC. Enter zero in 3a if no annuities
were purchased for Missing Participants, and zero in 3b if no amounts
are being paid to PBGC. Entries are required in both 3a and 3b.
Entries are required in both columns (1) and (2) as well if this
submission is an amended Schedule MP.
3c top The deemed distribution date is (1) the distribution deadline (including extensions) or (2) if the plan administrator selects an earlier date that is no earlier than the date when all distributions have been made under the plan except for distributions to Missing Participants whose designated benefits are paid to PBGC, such earlier date. The distribution deadline (including extensions) is described in section II.H.1 of the Standard Termination Package and section C of Appendix C of the Distress Termination Package.
Note: If the only amounts you are distributing or have distributed to Missing Participants are residual assets or voluntary employee contributions i.e., you have never paid designated benefits to PBGC or purchased annuities for any Missing Participant in the plan, enter "00/00/0000" for the deemed distribution date.4a-c top The same instructions that applied to items 3a and 3b above apply to items 4a-4c (if the amount in any item is zero, enter zero; do not leave blank). As was done for items 3a and 3b above, entries are required in both columns (1) and (2), and what is entered in each column depends on whether this is your first submission of a Schedule MP, or an amended submission.
For items -
4a (Total
amount of designated benefits),
4b (Total of
other amounts due for Missing Participants) and
4c (Total
amount due to
PBGC for Missing Participants),
the numbers entered in column (1) should equal the sum of the
amounts in items 3a, 3b, and 3c, respectively, of all Attachments B
(Missing Participant Individual Information) submitted with this
filing.
If this filing is your first
submission of a Schedule MP, the
same numbers should be entered in columns (1) and (2).
If this is an amended submission, the numbers entered in column (2) for items 4a, 4b, and 4c, should equal the sum of the amounts in items 3a, 3b, and 3c, respectively, of all Attachments B that you have submitted to PBGC, in this filing and all earlier filings.
4d-e top
Enter in 4d the date designated benefits in 4a were sent to PBGC.
For
4e, compare the date in 4d with that entered in 3c. Is the date in 4d
more than 90 days after the date in 3c?
If "Yes," interest will be assessed by PBGC from the 91st day after the date in 3c until the date when the payment was received by PBGC. PBGC will issue a bill to you for the amount of the assessed interest and you will have 30 days from the date of PBGC's bill to pay without incurring further interest.
Part IV should be completed and signed by the plan's administrator.
If only an Attachment A is attached to the Schedule MP, i.e., all distributions to Missing Participants in this filing were by the purchase of irrevocable commitments, Part V does not need to be completed. If any benefits were paid to PBGC for Missing Participants in this filing, Part V should be completed and signed by an Enrolled Actuary.
File Attachment A (Annuity Purchase Information) with the Schedule
MP if the plan purchased an irrevocable commitments for one or more
Missing Participants. See
II.C.3. above if you have 100 or more Missing
Participants.
Note: If irrevocable commitments were purchased
from more than one insurer, complete a separate Attachment A for each
insurer.
If you previously filed one or more Attachments A for this plan, check the box immediately below "PART I."
The information entered in Part I should be the same as that entered in Part I of the Schedule MP.
2a-d top Enter name and address of insurer, and the name, telephone number and e-mail of your contact at the insurer. Please verify that the information provided is the most current information available.
2e top Enter the policy number with the insurer.
For each Missing Participant listed in Part III, enter the full name, Social Security Number, and date of birth of the Missing Participant and, if applicable, of the Missing Participant's spouse or beneficiary. Also enter the certificate number for the Missing Participant's annuity.
For the Missing Participant's Monthly Benefit, enter the monthly benefit payable in the plan's normal form at the Missing Participant's normal retirement age.The normal form is the form in which the benefitis typically paid under plan provisions (generally a single-life or joint-life annuity). If the Missing Participant is an alternate payee or other beneficiary, enter the monthly benefit amount payable at the earliest date the alternate payee or other beneficiary may begin receiving benefits. If the Missing Participant was in pay status, enter the monthly benefit amount that was in pay status.
File an Attachment B (Missing Participant Individual Information) with the Schedule MP for each Missing Participant for whom an amount is due to PBGC. On each Attachment B, enter the sequence number of the attachment in terms of the total number of Attachments B that are submitted with this filing. See II.C.3 above if you have 100 or more Missing Participants.
The information entered in Part I should be the same as that entered in Part I of the Schedule MP.
If you previously filed one or more Attachments B for this individual, check the box immediately below "PART II."
2a-g top Enter the requested identification information for the Missing Participant.
If this is your first submission of an Attachment B for this individual, the same amounts should be entered in columns (1) and (2) for items 3a-3c.
If you previously filed an Attachment B for this individual, the responses entered in column (1) for items 3a-3c should reflect only the revised or additional information that you are reporting for this individual in this filing. The entries in column (2) should reflect the responses of all Attachments B that you have submitted to PBGC, in this filing and all earlier filings.
3 A. Category of designated benefit (see 29 CFR § 4050.5) top
Determine the category of the Missing Participant's designated
benefit from the following list and check one of the boxes under item
3a:
3 B. Amount of designated benefit (see 29 CFR §§ 4050.5 and 4050.12(c)) top
After determining the category of designated benefit for the Missing Participant under A., above and checking the pertinent box in item 3a, calculate the amount of the designated benefit using the applicable calculation instructions below for that category.
3 C. Definitions for calculation of designated benefit (see 29 CFR §§ 4050.2 and 4050.5(b)(1))
Pages 2 and 3 of Attachment B: Enter the Missing Participant's Social Security Number at the top of each page in the space provided.
3b top Enter amount of designated benefits. In determining the amount of designated benefits, two amounts must be considered for inclusion-
Mandatory employee contributions: Is any part of the Missing Participant's designated benefit amount attributable to mandatory employee contributions? If "Yes," complete (1)-(3) below:Missed benefit payments: In determining the amount of designated benefits, for any Missing Participant who was in pay status at the deemed distribution date (see item 6 below), the designated benefit amount must include payments that were due before the deemed distribution date but that were not made, with interest through the deemed distribution date. That is, the amount entered in 3a must include the amount entered in the last line of item 6a below.
3c top "Other amounts due" are (1) voluntary employee contributions (and earnings thereon) as defined in 29 CFR § 4050.12(c)(2)(i) and (ii); and (2) residual assets, as determined under 29 CFR § 4050.12(d). If no voluntary employee contributions or residual assets are due, enter zero; do not leave blank.
3d top Total amount due to PBGC (line 3b + line 3c(3)).
Note: You must pay the total amount due for the Missing Participant to PBGC, without any reduction for the 20% tax withholding, even if 20% tax withholding has already been paid to the Internal Revenue Service for the benefit.Note: Complete item 4, item 5
or item 6 below
(complete only one): For a Missing Participant who is a participant and whose benefit was not in pay status as of the deemed distribution date → Complete item 4 For a Missing Participant who is a beneficiary (including a spouse or alternate payee) and whose benefit was not in pay status as of the deemed distribution date → Complete item 5 For a Missing Participant whose benefit was in pay status as of the deemed distribution date → Complete item 6 Note: A Missing Participant's benefit is in pay status as of the deemed distribution date if, as of that date, the plan administrator has made or (except for administrative delay or a waiting period) would have made one or more benefit payments. In addition, the benefit of a Missing Participant who is a beneficiary is considered to be in pay status if (1) the participant from whom the beneficiary's benefit was derived went into pay status on or before the deemed distribution date or (2) payments to the beneficiary have commenced or would have commenced automatically without an election on or before that date. In addition, if the Missing Participant is an alternate payee under a QDRO that required benefits to commence concurrent with the participant's benefits, the benefit is in pay status if the participant was in pay status as of the deemed distribution date. If the Missing Participant is an alternate payee who is entitled to commence benefits upon his or her own election, the benefit is in pay status if, as of the deemed distribution date, the plan administrator has made or (except for administrative delay or a waiting period) would have made one or more benefit payments. |
4 top Missing Participant Who is a Participant and Whose Benefit Was Not in Pay Status.
Complete this item only if the Missing Participant is a participant whose benefit was not in pay status as of the deemed distribution date.
4a top Enter the participant's earliest retirement date (or the deemed distribution date, if later).
4b top If applicable, enter the participant's last-known spouse's name and Social Security Number; otherwise enter "N/A."
If you checked category 1 (Mandatory Lump Sum) in item 3.A (Category of Designated Benefit) above, do not complete 4c-4e; go to item 7.
4c top If applicable, check whether the participant's last-known spouse consented to the participant's waiver of the plan's QPSA. If "Yes" is checked, attach a copy of the waiver.
4d top If applicable, enter the participant's last-known spouse's earliest possible QPSA annuity starting date under the plan (or the deemed distribution date, if later). Enter the deemed distribution date if the QPSA is payable immediately upon the participant's death.
4e top Enter Codes from the Table of Plan Benefit Forms on page 11 which describes the automatic annuity format that would be payable with respect to the participant. Regardless of the participant's last-known marital status, provide a Code for the automatic annuity form for a married participant, 4e(1), and for an unmarried participant, 4e(2).
If you entered Codes 2 - 6, or 10, provide the information requested for that Code (if Code 10 entered, describe the form).
5 top Missing Participant Who Is a Beneficiary (including a participant's spouse or alternate payee) and Whose Benefit Was Not in Pay Status
Complete this item only if the Missing Participant is a beneficiary, and the beneficiary's benefit was not in pay status as of the deemed distribution date.
5a top Enter a code from the Table of Plan Benefit Forms on page 11 that describes the form of benefit to which the beneficiary is entitled.
If you entered Code 2 - 6, or 10, provide the information requested for that Code (if Code 10 entered, describe the form).5b top Enter the earliest date the beneficiary could commence receiving benefits (or the deemed distribution date, if later).
6 top Missing Participant Who Was in Pay Status.
Complete this item only if the Missing Participant was in pay status as of the deemed distribution date.
6a top Enter a
Code from the Table of Plan Benefit Forms on
page 11 that describes the form of benefit that was in pay status. If
you entered Code 2 - 8, or 10, provide the information requested for
that Code (if Code 10 entered, describe the form). In addition,
provide, as applicable, the following information:
6b top If available, the full name(s) of the Missing Participant's beneficiaries. Attach a copy of the beneficiary designation form, if available.
Enter check marks for all documents which are attached.
Examples of Designated Benefit Determinations for Missing Participants under § 4050.5 in plans with deemed distribution dates on and after February 27, 2007. The calculation of the designated benefit is illustrated by the following examples:
Example 1.a. - $5,000 cash out limit. Plan A provides that any participant whose benefit has a value at distribution of $5,000 or less will be paid a lump sum, and that no other lump sums will be paid. P, Q, and R are missing participants.
Example 1.b. - $3,500 cash out limit. Plan A provides that any participant whose benefit has a value at distribution of $3,500 or less will be paid a lump sum, and that no other lump sums will be paid. P, Q, and R are missing participants.
Example 2 - Annuity assumptions. Plan B provides for a normal retirement age of 65 and permits early commencement of benefits at any age between 60 and 65, with benefits reduced by 5 percent for each year before age 65 that the benefit begins. The qualified joint and 50 percent survivor annuity payable under the terms of the plan requires in all cases a 16 percent reduction in the benefit otherwise payable. The plan does not provide for elective lump sums.