[Federal Register Volume 60, Number 164 (Thursday, August 24, 1995)]
[Proposed Rules]
[Pages 44158-44179]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21065]



      

[[Page 44157]]

_______________________________________________________________________

Part VI





Pension Benefit Guaranty Corporation





_______________________________________________________________________



29 CFR Part 2606, et al.



Missing Participants; Proposed Rule

  Federal Register / Vol. 60, No. 164 / Thursday, August 24, 1995 / 
Proposed Rules  

[[Page 44158]]


PENSION BENEFIT GUARANTY CORPORATION

29 CFR Parts 2606, 2616, 2617, and 2629

RIN 1212-AA81


Missing Participants

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Pension Benefit Guaranty Corporation is proposing a 
regulation to implement the new missing participants program under 
section 4050 of the Employee Retirement Income Security Act of 1974. 
Section 4050 applies to single-employer defined benefit plans 
distributing benefits in accordance with the standard termination 
procedures of Title IV.

DATES: Comments must be received by October 10, 1995.

ADDRESSES: Comments should be mailed to the Office of the General 
Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW., 
Washington, DC 20005-4026, or delivered to suite 340 at that address. 
Written comments will be available for public inspection at the PBGC's 
Communications and Public Affairs Department, suite 240 at the same 
address.

FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General 
Counsel, or Deborah C. Murphy, Attorney, Office of the General Counsel, 
suite 340, Pension Benefit Guaranty Corporation, 1200 K Street NW., 
Washington, DC 20005-4026; 202-326-4024 (202-326-4179 for TTY and TDD).

SUPPLEMENTARY INFORMATION: When a fully-funded single-employer defined 
benefit pension plan terminates, the plan administrator must provide 
each participant and beneficiary with his or her benefit by purchasing 
an annuity from an insurer or paying a lump sum. Although in most cases 
the plan administrator can find all participants and beneficiaries, the 
plan administrator sometimes cannot do so.
    Plan administrators provide benefits to persons who cannot be 
located by purchasing annuities from insurers or, in some limited 
cases, depositing funds in financial institutions. In certain 
instances, an insurer may not provide an annuity, or a financial 
institution may decline to accept the funds. A person who later comes 
forward may have difficulty locating his or her benefit.
    Section 4050, which applies after final regulations go into effect, 
requires the plan administrator to distribute the benefits of a person 
who cannot be located by purchasing an annuity from an insurance 
company or paying funds to the PBGC. The PBGC will search for 
participants and beneficiaries for whom funds are paid to the PBGC, and 
pay benefits to those who are located (or their survivors). 
Participants and beneficiaries may also contact the PBGC to get the 
name of the insurance company from which an annuity was purchased or to 
obtain their benefits from the PBGC.
    This proposed rule implementing section 4050 applies to plans 
undergoing standard terminations and to plans undergoing distress 
terminations that are sufficient for guaranteed benefits and close out 
under the standard termination rules.
    The Administration has proposed extending the missing participants 
program to terminating defined contribution plans and to terminating 
defined benefit plans not covered by Title IV. This proposed rule 
addresses only the enacted program for terminating defined benefit 
plans covered by Title IV.

Diligent Search

    A plan administrator must conduct a ``diligent search'' for a 
missing participant before paying the benefit to the PBGC. (The term 
``missing participant'' includes beneficiaries as well as participants, 
and may include alternate payees under a qualified domestic relations 
order.)
    A search is a diligent search only if:
     The plan administrator asks any known beneficiaries of the 
missing participant for the missing participant's address; and
     The plan administrator uses a commercial locator service.
    The plan administrator must undertake the search at or after the 
beginning of the plan termination process, and in a manner reasonably 
expected to permit timely distributions to located participants and 
beneficiaries. A plan administrator may use additional search methods, 
such as the Internal Revenue Service's letter forwarding program for 
those attempting to locate missing individuals, or mailing 
correspondence to the missing participant's last known address with a 
request to the post office for an address correction.

Payments to the PBGC (Designated Benefit)

Amount

    A plan administrator that does not purchase an annuity for a 
missing participant must pay to the PBGC an amount (the ``designated 
benefit'') representing the value of the missing participant's plan 
benefit. The method for determining the amount to be paid depends 
mainly on the plan's provisions.
    If under the plan the missing participant would be paid a mandatory 
lump sum distribution--e.g., because the single sum value does not 
exceed $3,500--the plan administrator pays the amount of the mandatory 
lump sum to the PBGC.
    If the missing participant would not receive a mandatory lump sum 
under the plan, but the value of the missing participant's benefit is 
de minimis (i.e., the benefit has a value of $3,500 or less) under the 
``missing participant lump sum assumptions'', the plan administrator 
pays that value.
    For the remaining missing participants, the plan administrator 
determines whether the missing participant can elect an immediate lump 
sum under the plan as of the ``deemed distribution date'' selected by 
the plan administrator (generally between the distribution date for 
non-missing participants and the end of the permitted distribution 
period). If not, the plan administrator pays the value of the missing 
participant's benefit calculated under the ``missing participant 
annuity assumptions.''
    If the missing participant can elect a lump sum, the plan 
administrator pays an amount equal to the greater of the lump sum using 
plan assumptions or the value of the benefit using the missing 
participant annuity assumptions.

PBGC Assumptions and Calculation Methods

    Certain relevant information, such as the future marital status of 
a missing participant or whether the missing participant is still 
alive, is not available to the plan administrator. The PBGC has 
developed a number of simplifying assumptions to deal with these and 
other issues under the missing participants program. These assumptions 
take into account the value of the various benefits the missing 
participant (or his or her beneficiary) could receive under the plan. 
The PBGC invites public comment on these assumptions.
    The actuarial assumptions used under the missing participants 
program are based on the lump sum and annuity assumptions in the PBGC's 
single-employer valuation regulation (29 CFR Part 2619). (The PBGC 
intends to propose new assumptions for valuing lump sums and the final 
missing 

[[Page 44159]]
participant regulations may reflect those changes.) However, the 
mortality tables and loading charges in the valuation regulation are 
modified and the ``most valuable benefit'' is used instead of the 
benefit at the expected retirement age.
    For a missing participant whose benefit is in pay status, the most 
valuable benefit is the benefit in pay status. For a participant whose 
benefit is not in pay status, the plan administrator assumes the 
participant is married to a spouse the same age, and the participant's 
qualified joint and survivor annuity under the plan is valued at each 
age between the participant's earliest early retirement age and the 
participant's normal retirement age to find the most valuable benefit. 
For a beneficiary whose benefit is not in pay status, the plan 
administrator assumes the beneficiary is not married, and the 
beneficiary's automatic form of benefit under the plan is valued at 
each age between the deceased participant's earliest early retirement 
age and the participant's normal retirement age to find the most 
valuable benefit.
    Several special rules apply, including rules for when there are 
employee contributions to the plan or distributions of residual assets 
to missing participants.

Benefit Payments by the PBGC

    If a plan administrator pays an amount to the PBGC for a missing 
participant, and the missing participant (or his or her beneficiary or 
estate) later contacts the PBGC or is located through the PBGC search 
process, the PBGC provides benefits as described below. (If a plan 
administrator purchases an annuity for a missing participant, and the 
missing participant (or his or her beneficiary or estate) later 
contacts the PBGC, the PBGC advises the person of the identity of the 
insurance company that issued the annuity.)

Automatic Lump Sums

    The PBGC pays a lump sum to a located missing participant if the 
plan would have paid the missing participant a mandatory lump sum. The 
lump sum equals the amount paid to the PBGC plus interest.
    If, unknown to the plan administrator, the missing participant died 
before the deemed distribution date, and if the plan so provides, the 
PBGC pays the lump sum to the missing participant's beneficiary or 
estate. If the missing participant dies on or after the deemed 
distribution date, the PBGC pays the lump sum to the missing 
participant's estate.
    Similar rules apply when, although a mandatory lump sum would not 
be paid to the missing participant under the plan, the PBGC could pay a 
de minimis lump sum under the guaranteed benefit program because the 
value of the benefit was $3,500 or less under the missing participant 
lump sum assumptions. In this case, however, the participant or 
beneficiary may decline the de minimis lump sum and elect to receive an 
equivalent annuity to the extent that participants and beneficiaries in 
the PBGC's guaranteed benefits program have that option.

Annuities

    In other cases the PBGC pays the benefit in the forms available 
under the guaranteed benefits program. If the missing participant is a 
participant and is alive, the form is typically a qualified joint and 
survivor annuity or, for unmarried participants, a single life annuity. 
A living missing participant's annuity equals the annuity that can be 
purchased with the amount the plan administrator paid to the PBGC 
(minus the loading charge) using the missing participant annuity 
assumptions in effect at the deemed distribution date. A missing 
participant whose benefit was in pay status before becoming missing 
receives back payments and continuation of the original benefit.
    A missing participant who could have received an immediate lump sum 
as of the deemed distribution date under the plan may elect a lump sum 
payment from the PBGC (after obtaining any required spousal consent). 
The lump sum equals the amount paid to the PBGC plus interest.
    If the missing participant is a participant and dies before 
receiving benefits from the PBGC, the PBGC pays the missing 
participant's surviving spouse (unless the spouse has properly waived 
the benefit) a preretirement survivor annuity, based on a joint and 50 
percent survivor annuity that is the actuarial equivalent of the amount 
paid to the PBGC (minus the loading charge). A beneficiary of such a 
deceased missing participant who was in pay status receives the benefit 
the beneficiary would have received under the plan, including, where 
appropriate, back payments.
    A beneficiary of a missing participant who died before the deemed 
distribution date may establish that he or she is the proper 
beneficiary under the plan, or that he or she would have received 
benefits in a different form, at a different time, or in a different 
amount. If the beneficiary establishes this to the PBGC's satisfaction, 
the beneficiary will receive the revised benefit. However, the total 
actuarial value as of the deemed distribution date of all benefits 
payable will be limited to the designated benefit.
    A spouse or other beneficiary of a deceased missing participant may 
elect a lump sum equivalent of the survivor annuity if the missing 
participant could have elected a lump sum under the plan.

Guaranteed Benefit

    If a missing participant or his or her beneficiary establishes, to 
the PBGC's satisfaction, that the designated benefit paid to the PBGC 
was less than the amount that should have been paid as a designated 
benefit, the PBGC will increase the benefit to reflect the correct 
designated benefit or, if less, the value of the guaranteed benefit.

Procedural Requirements

    The plan administrator pays the designated benefits to the PBGC by 
the time the post-distribution certification (PDC) required under the 
PBGC's plan termination regulation is due. (Interest is assessed if the 
payment is late.) At the same time, the plan administrator must give 
the PBGC certifications and information about all missing participants, 
as required by new Schedule MP and its instructions, which are set 
forth as an addendum to this proposed rule document.
    Special rules are provided for missing participants who are 
discovered to be missing shortly before the deemed distribution date 
(``recently-missing participants'') and for participants who are 
located late in the process (``late-discovered participants'').
    The PBGC has discretion to return to the plan administrator the 
designated benefit of a missing participant found within 30 days after 
the PBGC receives the designated benefit. The plan administrator will 
then distribute the benefit under the plan to that individual.
    The PBGC will review compliance with the missing participant 
program as part of its standard termination audits. The six-year 
recordkeeping requirement that applies generally to plan records 
associated with the termination process (Secs. 2616.9 and 2617.10) 
applies to missing participant records.
Paperwork Reduction Act

    The collection of information requirements contained in the 
proposed regulation on missing participants, and the forms and 
instructions to be used under the missing participants program, have 
been submitted to the Office of Management and Budget for review under 
section 3504(h) of the Paperwork Reduction Act of 1980. The PBGC needs 
the information submitted by plan 

[[Page 44160]]
administrators of terminating single-employer plans to identify, for 
missing participants whose benefits are annuitized, the insurance 
companies that are to provide their benefits; to attempt to locate 
missing participants for whom benefits are paid to the PBGC and to pay 
their benefits; and to monitor and audit compliance with all applicable 
requirements.
    The PBGC estimates that it will take an average of 2.46 hours to 
comply with the collection of information requirements under the 
proposed regulation and, based on its experience with trusteed plans, 
that about 500 plans will be required to comply each year. Accordingly, 
the estimated burden of the collection of information is 1,230 hours.
    Copies of the proposed forms and instructions are set forth as an 
addendum to this proposed rule document. Comments on the paperwork 
provisions of the proposed rule and on the forms and instructions 
should be mailed to the Office of Information and Regulatory Affairs, 
Office of Management and Budget, Attention: Desk Officer for the 
Pension Benefit Guaranty Corporation, Washington, DC 20503. Comments 
may address (among other things)--
     Whether the proposed collection of information is needed 
for the proper performance of the PBGC's functions and will have 
practical utility;
     The accuracy of the PBGC's estimate of the burden of the 
proposed collection of information;
     Enhancement of the quality, utility, and clarity of the 
information to be collected; and
     Minimizing the burden of the collection of information on 
respondents through the use of automated collection techniques (or 
other forms of information technology) or in other ways.
    In particular, the PBGC invites suggestions regarding procedures 
for submitting some or all of the required information electronically.

Compliance With Rulemaking Guidelines

    The PBGC has determined that this action is not a ``significant 
regulatory action'' under the criteria set forth in Executive Order 
12866 because the rule will not have an annual effect on the economy of 
$100 million or more or adversely affect in a material way the economy, 
a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency; materially 
alter the budgetary impact of entitlements, grants, user fees, or loan 
programs or the rights and obligations of recipients thereof; or raise 
novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in Executive Order 
12866.
    The PBGC certifies under section 605(b) of the Regulatory 
Flexibility Act that this regulation will not have a significant 
economic impact on a substantial number of small entities. Pension 
plans with fewer than 100 participants have traditionally been treated 
as small plans. Plan administrators of terminating plans of all sizes 
already have a duty to determine the amounts of all benefits, to 
attempt to locate all persons entitled to benefits, and to annuitize or 
provide cash accounts for those who cannot be found. The primary effect 
of this regulation is to substitute a formal procedure involving the 
PBGC for the informal procedures already being followed. The PBGC does 
not expect the standardization of these procedures to have a 
significant effect on plan administrators' burdens. Accordingly, 
sections 603 and 604 of the Regulatory Flexibility Act do not apply.

List of Subjects

29 CFR Part 2606

    Employee benefit plans, Pension insurance, Pensions, Administrative 
practice and procedure.

29 CFR Parts 2616, 2617, and 2629

    Employee benefit plans, Pension insurance, Pensions, Reporting and 
recordkeeping requirements.

    In consideration of the foregoing, the PBGC proposes to amend 29 
CFR chapter XXVI as follows.
    1. Part 2629 is added to subchapter C to read as follows:

PART 2629--MISSING PARTICIPANTS

Sec.
2629.1  Purpose and scope.
2629.2  Definitions.
2629.3  Method of distribution for missing participants.
2629.4  Diligent search.
2629.5  Designated benefit.
2629.6  Payment and required documentation.
2629.7  Benefits of missing participants--in general.
2629.8  Automatic lump sum.
2629.9  Annuity or elective lump sum--living missing participant.
2629.10  Annuity or elective lump sum--deceased missing participant.
2629.11  Limitations.
2629.12  Special rules.

Appendix A--Examples of designated benefit determinations for 
missing participants under Sec. 2629.5.
Appendix B--Examples of benefit payments for missing participants 
under Sec. 2629.8 through Sec. 2629.10.

    Authority: 29 U.S.C. 1302(b)(3), 1350.


Sec. 2629.1  Purpose and scope.

    (a) Purpose. This part prescribes rules for distributing benefits 
under a terminating plan to any individual whom the plan administrator 
has not located when distributing benefits under Sec. 2617.28(c) of 
this chapter.
    (b) Scope. This part applies to a plan if the plan's deemed 
distribution date (or the date of other payments made in accordance 
with Sec. 2629.12) is in a plan year beginning on or after the 
effective date of this part.


Sec. 2629.2  Definitions.

    For purposes of this part:
    (a) Act means the Employee Retirement Income Security Act of 1974, 
as amended.
    (b) Code means the Internal Revenue Code of 1986, as amended.
    (c) Deemed distribution date means the date selected by the plan 
administrator of a terminating plan that is on or after the date when 
all benefit distributions have been made under the plan except for 
distributions to missing participants whose designated benefits are 
paid to the PBGC, but not later than the last day of the period in 
which distribution may be made under Sec. 2616.29(a) or 2617.28(a) of 
this chapter (whichever applies).
    (d) Designated benefit means the amount payable to the PBGC for a 
missing participant pursuant to Sec. 2629.5.
    (e) Designated benefit interest rate means the rate of interest 
applicable to underpayments of guaranteed benefits by the PBGC under 
Sec. 2623.11(d) of this chapter.
    (f) Guaranteed benefit form means, with respect to a benefit, the 
form in which the PBGC would pay a guaranteed benefit to a participant 
or beneficiary in the PBGC's program for trusteed plans under parts 
2613 and 2621 of this chapter (treating the deemed distribution date as 
the date of plan termination for this purpose).
    (g) Late-discovered participant means a participant or beneficiary 
entitled to a distribution under a terminating plan whom the plan 
administrator locates before 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) and not more than 90 days before the deemed distribution date. 


[[Page 44161]]

    (h) Missing participant means a participant or beneficiary entitled 
to a distribution under a terminating plan whom the plan administrator 
has not located as of the date when 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.
    (i) Missing participant annuity assumptions means the interest rate 
assumptions and actuarial methods (using the interest rates for annuity 
valuation in Appendix B to part 2619 of this chapter) for valuing a 
benefit to be paid by the PBGC as an annuity under part 2619 of this 
chapter, applied--
    (1) As if the deemed distribution date were the date of plan 
termination;
    (2) Using unisex mortality rates that are a fixed blend of 50 
percent of the male mortality rates and 50 percent of the female 
mortality rates from the 1983 Group Annuity Mortality Table as 
prescribed in Rev. Rul. 95-6, 1995-4 IRB 22, January 23, 1995 (Internal 
Revenue Bulletins are available from the Superintendent of Documents, 
U.S. Government Printing Office, Washington, DC 20402);
    (3) Without using the expected retirement age assumptions in 
Subpart D to part 2619 of this chapter; and
    (4) By adding $300 for each missing participant as an adjustment 
(loading) for expenses (instead of the adjustment for expenses provided 
for in Sec. 2619.49(a)(4) of this chapter).
    (j) Missing participant forms and instructions means PBGC Forms 501 
and 602, Schedule MP thereto, and related forms, and their 
instructions.
    (k) Missing participant lump sum assumptions means the interest 
rate assumptions and actuarial methods (using the interest rates for 
lump sum valuations in Appendix B to part 2619 of this chapter) for 
valuing a benefit to be paid by the PBGC as a lump sum under part 2619 
of this chapter, applied--
    (1) As if the deemed distribution date were the date of plan 
termination;
    (2) Using mortality assumptions for healthy lives only (from Table 
I of Appendix A to part 2619 of this chapter, substituting x+1 for x); 
and
    (3) Without using the expected retirement age assumptions in 
Subpart D to part 2619 of this chapter.
    (l) Pay status means, with respect to a benefit, that, as of the 
deemed distribution date, one or more benefit payments have been made 
or would have been made except for administrative delay or a waiting 
period.
    (m) Post-distribution certification means the post-distribution 
certification required by Sec. 2616.29(b) or 2617.28(h) of this 
chapter.
    (n) Plan administrator means the administrator as defined in 
section 4001(a)(1) of the Act.
    (o) Recently-missing participant means a participant or beneficiary 
entitled to a distribution under a terminating plan whom the plan 
administrator discovers to be missing on or after the 90th day before 
the deemed distribution date.
    (p) Unloaded designated benefit means the designated benefit 
reduced by $300.


Sec. 2629.3  Method of distribution for missing participants.

    The plan administrator of a terminating plan shall distribute 
benefits for each missing participant by--
    (a) Purchasing an irrevocable commitment from an insurer in 
accordance with Sec. 2617.28(c) or Sec. 2616.29(a)(1) of this chapter 
(whichever is applicable); or
    (b) Paying the PBGC a designated benefit in accordance with 
Secs. 2629.4 through 2629.6 (subject to the special rules in 
Sec. 2629.12).


Sec. 2629.4  Diligent search.

    (a) Search required. A plan administrator shall make a diligent 
search for each missing participant whose designated benefit is paid to 
the PBGC. The search shall be made before the payment is made.
    (b) Diligence. A search is a diligent search only if the plan 
administrator--
    (1) Begins the search at or after the time when notices of intent 
to terminate are issued and carries on the search in such a manner that 
if the individual is found, distribution to the individual can 
reasonably be expected to be made on or before the deemed distribution 
date (or, in the case of a recently-missing participant, on or before 
the 90th day after the deemed distribution date);
    (2) Makes inquiry of any plan beneficiaries and alternate payees of 
the missing participant whose names and addresses are known to the plan 
administrator; and
    (3) Engages a commercial locator service to search for the missing 
participant.


Sec. 2629.5  Designated benefit.

    (a) Amount of designated benefit. The amount of the designated 
benefit shall be the amount determined under paragraph (a)(1), (a)(2), 
(a)(3), or (a)(4) of this section (whichever is applicable) or, if 
less, the amount that could be provided under the plan to the missing 
participant in the form of a single sum in accordance with section 415 
of the Code.
    (1) Mandatory lump sum. The designated benefit of a missing 
participant required under a plan to receive a mandatory lump sum as of 
the deemed distribution date shall be the lump sum payment that the 
plan administrator would have distributed to the missing participant as 
of the deemed distribution date.
    (2) De minimis lump sum. The designated benefit of a missing 
participant not described in paragraph (a)(1) of this section whose 
benefit is not in pay status and whose benefit has a de minimis 
actuarial present value ($3,500 or less) as of the deemed distribution 
date under the missing participant lump sum assumptions shall be such 
value.
    (3) No lump sum. The designated benefit of a missing participant 
not described in paragraph (a)(1) or (a)(2) of this section who, as of 
the deemed distribution date, cannot elect an immediate lump sum under 
the plan shall be the actuarial present value of the missing 
participant's benefit as of the deemed distribution date under the 
missing participant annuity assumptions.
    (4) Elective lump sum. The designated benefit of a missing 
participant not described in paragraph (a)(1), (a)(2), or (a)(3) of 
this section shall be the greater of the amounts determined under the 
methodologies of paragraph (a)(1) or (a)(3) of this section.
    (b) Assumptions. When the plan administrator uses the missing 
participant annuity assumptions or the missing participant lump sum 
assumptions for purposes of determining the designated benefit under 
paragraph (a) of this section, the plan administrator shall value the 
most valuable benefit, as determined under paragraph (b)(1) of this 
section, using the assumptions described in paragraph (b)(2) or (b)(3) 
of this section (whichever is applicable).
    (1) Most valuable benefit. For a missing participant whose benefit 
is in pay status, the most valuable benefit is the benefit in pay 
status. For a missing participant whose benefit is not in pay status, 
the most valuable benefit is the benefit payable at the age on or after 
the deemed distribution date (beginning with the participant's earliest 
early retirement age and ending with the participant's normal 
retirement age) for which the present value as of the deemed 
distribution date is the greatest. The present value as of the deemed 

[[Page 44162]]
distribution date with respect to any age is determined by multiplying:
    (i) The monthly (or other periodic) benefit payable under the plan; 
by
    (ii) The present value (determined as of the deemed distribution 
date using the missing participant annuity assumptions) of a $1 monthly 
(or other periodic) annuity beginning at the applicable age.
    (2) Participant. A missing participant who is a participant, and 
whose benefit is not in pay status, is assumed to be married to a 
spouse the same age, and the form of benefit that must be valued is the 
qualified joint and survivor annuity benefit that would be payable 
under the plan. If the participant's benefit is in pay status, the form 
and beneficiary of the participant's benefit are the form of benefit 
and beneficiary of the benefit in pay status.
    (3) Beneficiary. A missing participant who is a beneficiary, and 
whose benefit is not in pay status, is assumed not to be married, and 
the form of benefit that must be valued is the survivor benefit that 
would be payable under the plan. If the beneficiary's benefit is in pay 
status, the form and beneficiary of the beneficiary's benefit are the 
form of benefit and beneficiary of the benefit in pay status.
    (4) Examples. See Appendix A for examples illustrating the 
provisions of this section.
    (c) Missed payments. In determining the designated benefit, the 
plan administrator shall include the value of any payments that were 
due before the deemed distribution date but that were not made.
    (d) Payment of designated benefits. Payment of designated benefits 
shall be made in accordance with Sec. 2629.6 and shall be deemed made 
on the deemed distribution date.


Sec. 2629.6  Payment and required documentation.

    (a) Time of payment and filing.
    (1) General rule. The plan administrator shall pay designated 
benefits, and file the information and certifications (of the plan 
administrator and the plan's enrolled actuary) specified in the missing 
participant forms and instructions, by the time the post-distribution 
certification is due (determined in accordance with Secs. 2616.7(a) and 
2617.8(a) of this chapter). Except as otherwise provided in the missing 
participant forms and instructions, the plan administrator shall submit 
the designated benefits, information, and certifications with the post-
distribution certification.
    (2) Recently-missing participants. In the case of a recently-
missing participant, the plan administrator shall pay the designated 
benefit by the time the amended post-distribution certification is due 
under paragraph (a)(2)(ii) of this section. Except as otherwise 
provided in the missing participant forms and instructions--
    (i) Payment. The plan administrator shall submit the designated 
benefit with the amended post-distribution certification described in 
paragraph (a)(2)(ii) of this section; and
    (ii) Filing. If the diligent search is not complete when the plan 
administrator submits the filing described in paragraph (a)(1) of this 
section, the plan administrator shall indicate this in that filing and 
submit an amended filing (including an amended post-distribution 
certification) within 120 days after the deemed distribution date.
    (3) Late-discovered participants. When it is impracticable for the 
plan administrator to include complete and accurate final information 
on a late-discovered participant in a timely post-distribution 
certification, the plan administrator shall submit an amended post-
distribution certification within 120 days after the deemed 
distribution date in accordance with the missing participant forms and 
instructions.
    (b) Interest on late payments. If the plan administrator does not 
pay a designated benefit by the time specified in paragraph (a) of this 
section, the plan administrator shall pay interest as assessed by the 
PBGC for the period beginning on the deemed distribution date and 
ending on the date when the payment is received by the PBGC. Interest 
will be assessed at the rate provided for late premium payments in 
Sec. 2610.7 of this chapter.
    (c) Supplemental information. Within 30 days after the date of a 
written request from the PBGC, a plan administrator required to provide 
the information and certifications described in paragraph (a) of this 
section shall file supplemental information, as requested, for the 
purpose of verifying designated benefits and determining benefits to be 
paid by the PBGC under this part.
    (1) Information mailed. Supplemental information filed under this 
paragraph (c) is considered filed on the date of the United States 
postmark stamped on the cover in which the information is mailed, if--
    (i) The postmark was made by the United States Postal Service; and
    (ii) The information was mailed postage prepaid, properly addressed 
to the PBGC.
    (2) Information delivered. When the plan administrator sends or 
transmits the information to the PBGC by means other than the United 
States Postal Service, the information is considered filed on the date 
it is received by the PBGC. Information received on a weekend or 
Federal holiday or after 5:00 p.m. on a weekday is considered filed on 
the next regular business day.


Sec. 2629.7  Benefits of missing participants--in general.

    (a) If annuity purchased. If a plan administrator distributes a 
missing participant's benefit by purchasing an irrevocable commitment 
from an insurer, and the missing participant (or his or her beneficiary 
or estate) later contacts the PBGC, the PBGC will inform the person of 
the identity of the insurer and the relevant policy number.
    (b) If designated benefit paid. If the PBGC locates or is contacted 
by a missing participant for whom a plan administrator paid a 
designated benefit to the PBGC (or his or her beneficiary or estate), 
the PBGC will pay benefits in accordance with Secs. 2629.8 through 
2629.10 (subject to the limitations and special rules in Secs. 2629.11 
and 2629.12).
    (c) Examples. See Appendix B for examples illustrating the 
provisions of Secs. 2629.8 through 2629.10.
Sec. 2629.8  Automatic lump sum.

    This section applies to a missing participant whose designated 
benefit was determined under Sec. 2629.5(a)(1) (mandatory lump sum) or 
Sec. 2629.5(a)(2) (de minimis lump sum).
    (a) General rule.
    (1) Benefit paid. The PBGC will pay a single sum benefit equal to 
the designated benefit plus interest at the designated benefit interest 
rate from the deemed distribution date to the date on which the PBGC 
pays the benefit.
    (2) Payee. Payment shall be made--
    (i) To the missing participant, if located;
    (ii) If the missing participant died before the deemed distribution 
date, and if the plan so provides, to the missing participant's 
beneficiary or estate; or
    (iii) If the missing participant dies on or after the deemed 
distribution date, to the missing participant's estate.
    (b) De minimis annuity alternative. If the guaranteed benefit form 
for a missing participant whose designated benefit was determined under 
Sec. 2629.5(a)(2) (de minimis lump sum) (or the guaranteed benefit form 
for a beneficiary of such a missing participant) would provide for the 
election of an annuity, the missing participant (or the beneficiary) 
may elect to receive an annuity. If such an election is made--
    (1) The PBGC will pay the benefit in the elected guaranteed benefit 
form, beginning on the annuity starting date 

[[Page 44163]]
elected by the missing participant (or the beneficiary), but not before 
the later of the date of the election or the earliest date on which the 
missing participant (or the beneficiary) could have begun receiving 
benefits under the plan; and
    (2) The monthly (or other periodic) benefit paid will be 
actuarially equivalent to the designated benefit, i.e., each benefit 
payment will equal the designated benefit divided by the present value 
(determined as of the deemed distribution date under the missing 
participant lump sum assumptions) of a $1 monthly (or other periodic) 
annuity beginning on the annuity starting date.


Sec. 2629.9  Annuity or elective lump sum--living missing participant.

    This section applies to a missing participant whose designated 
benefit was determined under Sec. 2629.5(a)(3) (no lump sum) or 
Sec. 2629.5(a)(4) (elective lump sum) and who is living on the date as 
of which benefits commence.
    (a) Missing participant whose benefit is not in pay status. The 
PBGC will pay the benefit of a missing participant whose benefit is not 
in pay status as follows.
    (1) Time and form of benefit. The PBGC will pay the missing 
participant's benefit in the guaranteed benefit form, beginning on the 
annuity starting date elected by the missing participant (but not 
before the later of the date of the election or the earliest date on 
which the missing participant could have begun receiving benefits under 
the plan).
    (2) Amount of benefit. The PBGC will pay a monthly (or other 
periodic) benefit that is actuarially equivalent to the unloaded 
designated benefit, i.e., each benefit payment will equal the unloaded 
designated benefit divided by the present value (determined as of the 
deemed distribution date under the missing participant annuity 
assumptions) of a $1 monthly (or other periodic) annuity beginning on 
the annuity starting date.
    (b) Missing participant whose benefit is in pay status. The PBGC 
will pay the benefit of a missing participant whose benefit is in pay 
status as follows.
    (1) Time and form of benefit. The PBGC will pay the benefit in the 
form that was in effect, beginning when the missing participant is 
located.
    (2) Amount of benefit. The PBGC will pay the monthly (or other 
periodic) amount of the benefit that was in pay status, plus a lump sum 
equal to the payments the missing participant would have received under 
the plan, plus interest on the missed payments (at the plan rate up to 
the deemed distribution date and thereafter at the designated benefit 
interest rate) to the date as of which the PBGC pays the lump sum.
    (c) Payment of lump sum. If a missing participant whose designated 
benefit was determined under Sec. 2629.5(a)(4) (elective lump sum) so 
elects, the PBGC will pay his or her benefit in the form of a single 
sum. This election is not effective unless the missing participant's 
spouse consents (if such consent would be required under section 205 of 
the Act). The single sum equals the designated benefit plus interest 
(at the designated benefit interest rate) from the deemed distribution 
date to the date as of which the PBGC pays the benefit.


Sec. 2629.10  Annuity or elective lump sum--deceased missing 
participant.

    This section applies to a beneficiary of a deceased missing 
participant whose designated benefit was determined under 
Sec. 2629.5(a)(3) (no lump sum) or Sec. 2629.5(a)(4) (elective lump 
sum) and whose benefit is not payable under Sec. 2629.9.
    (a) If missing participant died with benefit not in pay status.
    (1) General rule.
    (i) Beneficiary. The PBGC will pay a benefit to the surviving 
spouse of a missing participant who is a participant and whose benefit 
is not in pay status (unless the surviving spouse has properly waived a 
benefit in accordance with section 205 of the Act).
    (ii) Form and amount of benefit. The PBGC will pay the survivor 
benefit in the form of a single life annuity. Each benefit payment will 
equal 50% of the quotient that results when the unloaded designated 
benefit is divided by the present value (determined as of the deemed 
distribution date under the missing participant annuity assumptions, 
and assuming that the missing participant survived to the deemed 
distribution date) of a $1 monthly (or other periodic) joint and 50% 
survivor annuity in the form described in Sec. 2619.49(f)(1) of this 
chapter beginning on the annuity starting date.
    (iii) Time of benefit. The PBGC will pay the survivor benefit 
beginning at the time elected by the surviving spouse (but not before 
the later of the date of the election or the earliest date on which the 
surviving spouse could have begun receiving benefits under the plan).
    (2) If missing participant died before deemed distribution date. 
Notwithstanding the provisions of paragraph (a)(1) of this section, if 
a beneficiary of a missing participant who died before the deemed 
distribution date establishes to the PBGC's satisfaction that he or she 
is the proper beneficiary or would have received benefits under the 
plan in a form, at a time, or in an amount different from the benefit 
paid under paragraph (a)(1)(ii) or (a)(1)(iii) of this section, the 
PBGC will make payments in accordance with the facts so established, 
but only in the guaranteed benefit form.
    (3) Elective lump sum. Notwithstanding the provisions of paragraphs 
(a)(1) and (a)(2) of this section, if the beneficiary of a missing 
participant whose designated benefit was determined under 
Sec. 2629.5(a)(4) (elective lump sum) so elects, the PBGC will pay his 
or her benefit in the form of a single sum. The single sum will be 
equal to the actuarial present value (determined as of the deemed 
distribution date under the missing participant annuity assumptions) of 
the death benefit payable on the annuity starting date, plus interest 
(at the designated benefit interest rate) from the deemed distribution 
date to the date as of which the PBGC pays the benefit.
    (b) If missing participant died with benefit in pay status.
    (1) Beneficiary. The PBGC will pay benefits to the beneficiary (if 
any) of the benefit that was in pay status.
    (2) Form and amount of benefit. The PBGC will pay a monthly (or 
other periodic) amount equal to the monthly (or other periodic) amount, 
if any, that the beneficiary would have received under the form of 
payment in effect, plus a lump sum payment equal to the payments the 
beneficiary would have received under the plan subsequent to the 
missing participant's death and prior to the date as of which the 
benefit is paid under paragraph (b)(4) of this section, plus interest 
on the missed payments (at the plan rate up to the deemed distribution 
date and thereafter at the designated benefit interest rate) to the 
date as of which the benefit is paid under paragraph (b)(4) of this 
section.
    (3) Lump sum payment to estate. The PBGC will make a lump sum 
payment to the missing participant's estate equal to the payments that 
the missing participant would have received under the plan for the 
period prior to the missing participant's death, plus interest on the 
missed payments (at the plan rate up to the deemed distribution date 
and thereafter at the designated benefit interest rate) to the date as 
of which the benefit is paid under paragraph (b)(4) of this section. 
Notwithstanding the preceding sentence, if a beneficiary of a missing 
participant other than the estate establishes to the PBGC's 
satisfaction that the beneficiary is entitled to the 

[[Page 44164]]
lump sum payment, the PBGC will pay the lump sum to such beneficiary.
    (4) Time of benefit. The PBGC will pay the survivor benefit when 
the beneficiary is located.
Sec. 2629.11  Limitations.

    (a) Exclusive benefit. The benefits provided for under Secs. 2629.8 
through 2629.10 shall be the only benefits payable by the PBGC to 
missing participants or to beneficiaries based on the benefits of 
deceased missing participants.
    (b) Limitation on benefit value. The total actuarial present value 
of all benefits paid with respect to a missing participant under 
Secs. 2629.8 through 2629.10, determined as of the deemed distribution 
date, shall not exceed the missing participant's designated benefit.
    (c) Guaranteed benefit. If a missing participant or his or her 
beneficiary establishes to the PBGC's satisfaction that the benefit 
under Secs. 2629.8 through 2629.10 (based on the designated benefit 
actually paid to the PBGC) is less than the minimum benefit in this 
paragraph (c), the PBGC shall instead pay the minimum benefit. The 
minimum benefit shall be the lesser of:
    (1) The benefit as determined under the PBGC's rules for paying 
guaranteed benefits in trusteed plans under parts 2613 and 2621 of this 
chapter (treating the deemed distribution date as the date of plan 
termination for this purpose); or
    (2) The benefit based on the designated benefit that should have 
been paid under Sec. 2629.5.
    (d) Limitation on annuity starting date. A missing participant (or 
his or her survivor) may not elect an annuity starting date after the 
later of--
    (1) The required beginning date under section 401(a)(9) of the 
Code; or
    (2) The date when the missing participant (or the survivor) is 
located.


Sec. 2629.12  Special rules.

    (a) Late-discovered participants. The plan administrator of a plan 
that terminates with one or more late-discovered participants shall 
(after issuing notices to each such participant in accordance with 
Secs. 2616.22 and 2616.27 or 2617.22 and 2617.23 of this chapter 
(whichever apply)), distribute each such late-discovered participant's 
benefit within the period described in Sec. 2616.29(a) or 2617.28(a) of 
this chapter (whichever applies) if practicable or (if not) as soon 
thereafter as practicable, but not more than 90 days after the deemed 
distribution date.
    (b) Missing participants located quickly. Notwithstanding the 
provisions of Secs. 2629.8 through 2629.10, if the PBGC or the plan 
administrator locates a missing participant within 30 days after the 
PBGC receives the missing participant's designated benefit, the PBGC 
may in its discretion return the missing participant's designated 
benefit to the plan administrator, and the plan administrator shall 
treat the missing participant like a late-discovered participant.
    (c) Qualified domestic relations orders. Plan administrators and 
the PBGC shall take the provisions of qualified domestic relations 
orders (QDROs) under section 206(d)(3) of the Act into account in 
determining designated benefits and benefit payments by the PBGC, 
including treating an alternate payee under an applicable QDRO as a 
missing participant or as a beneficiary of a missing participant, as 
appropriate, in accordance with the terms of the QDRO. For purposes of 
calculating the amount of the designated benefit of an alternate payee, 
the plan administrator shall use the assumptions for a missing 
participant who is a beneficiary under Sec. 2629.5(b).
    (d) Employee contributions.
    (1) Mandatory employee contributions. Notwithstanding the 
provisions of Sec. 2629.5, if a missing participant's contributions 
were mandatory (within the meaning of section 4044(a)(2) of the Act), 
the missing participant's designated benefit shall not be less than the 
sum of the missing participant's mandatory contributions and interest 
to the deemed distribution date at the plan's rate or the rate under 
section 204(c) of the Act (whichever produces the greater amount).
    (2) Voluntary employee contributions.
    (i) Applicability. This paragraph (d)(2) applies to any employee 
contributions that were not mandatory (within the meaning of section 
4044(a)(2) of the Act) to which a missing participant is entitled in 
connection with the termination of a defined benefit plan.
    (ii) Payment to PBGC. A plan administrator, in accordance with the 
missing participant forms and instructions, shall pay the employee 
contributions described in paragraph (d)(2)(i) of this section 
(together with any earnings thereon) to the PBGC, and shall file 
Schedule MP with the PBGC, by the time the designated benefit is due 
under Sec. 2629.6. Any such amount shall be in addition to the 
designated benefit and shall be separately identified.
    (iii) Payment by PBGC. In addition to any other amounts paid by the 
PBGC under Secs. 2629.8 through 2629.10, the PBGC shall pay any amount 
paid to it under paragraph (d)(2)(ii) of this section, with interest at 
the designated benefit interest rate from the date of receipt by the 
PBGC to the date of payment by the PBGC, in the same manner as 
described in Sec. 2629.8 (automatic lump sums), except that if the 
missing participant died before the deemed distribution date and there 
is no beneficiary, payment shall be made to the missing participant's 
estate.
    (e) Residual assets. The PBGC shall determine, in a manner 
consistent with the purposes of this part and section 4050 of the Act, 
how the provisions of this part shall apply to any distribution, to 
participants and beneficiaries who cannot be located, of residual 
assets remaining after the satisfaction of benefit liabilities in 
connection with the termination of a defined benefit plan. The deadline 
for payment of residual assets for a missing participant and for 
submission to the PBGC of a Schedule MP (or an amended Schedule MP) is 
the 30th day after the date on which all residual assets have been 
distributed to all participants and beneficiaries other than missing 
participants for whom payment for residual assets is made to the PBGC.
    (f) Sufficient distress terminations. In the case of a plan 
undergoing a distress termination (under section 4041(c) of the Act) 
that is sufficient for at least all guaranteed benefits and that 
distributes its assets in the manner described in section 4041(b)(3) of 
the Act, the benefit assumed to be payable by the plan for purposes of 
determining the amount of the designated benefit under Sec. 2629.5 
shall be limited to the Title IV benefit (as defined in Sec. 2616.2 of 
this chapter).
    (g) Similar rules for later payments. If the PBGC determines, upon 
audit of a plan termination, that one or more persons should receive 
benefits (which may be in addition to benefits already provided) in 
order for a termination to be valid, and one or more of such 
individuals cannot be located, the PBGC shall determine, in a manner 
consistent with the purposes of this part and section 4050 of the Act, 
how the provisions of this part shall apply to such benefits.

Appendix A--Examples of Designated Benefit Determinations for 
Missing Participants Under Sec. 2629.5

    The calculation of the designated benefit under Sec. 2629.5 is 
illustrated by the following examples.
    Example 1. Plan A provides that any participant whose benefit 
has a value at distribution of $1,750 or less will be paid a lump 
sum, and that no other lump sums will be paid. P, Q, and R are 
missing participants.
    (1) As of the deemed distribution date, the value of P's benefit 
is $1,700 under plan A's assumptions. Under Sec. 2629.5(a)(1), the 
plan 

[[Page 44165]]
administrator pays the PBGC $1,700 as P's designated benefit.
    (2) As of the deemed distribution date, the value of Q's benefit 
is $3,700 under plan A's assumptions and $3,200 under the missing 
participant lump sum assumptions. Under Sec. 2629.5(a)(2), the plan 
administrator pays the PBGC $3,200 as Q's designated benefit.
    (3) As of the deemed distribution date, the value of R's benefit 
is $3,400 under plan A's assumptions, $3,600 under the missing 
participant lump sum assumptions, and $3,450 under the missing 
participant annuity assumptions. Under Sec. 2629.5(a)(3), the plan 
administrator pays the PBGC $3,450 as R's designated benefit.
    Example 2. 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.
    (1) M is a missing participant who separated from service under 
plan B with a deferred vested benefit. M is age 50 at the deemed 
distribution date, and has a normal retirement benefit of $1,000 per 
month payable at age 65 in the form of a single life annuity. M's 
benefit as of the deemed distribution date has a value greater than 
$3,500 using either plan assumptions or the missing participant lump 
sum assumptions. Accordingly, M's designated benefit is to be 
determined under Sec. 2629.5(a)(3).
    (2) For purposes of determining M's designated benefit, M is 
assumed to be married to a spouse who is also age 50 on the deemed 
distribution date. M's monthly benefit in the form of the qualified 
joint and survivor annuity under the plan varies from $840 at age 65 
(the normal retirement age) ($1,000 x (1-.16)) to $630 at age 60 
(the earliest retirement age) ($1,000 x (1-5 x (.05)) x (1-.16)).
    (3) Under Sec. 2629.5(a)(3), M's benefit is to be valued using 
the missing participant annuity assumptions. The select and ultimate 
interest rates on Plan B's deemed distribution date are 7.50 percent 
for the first 20 years and 5.75 percent thereafter. Using these 
rates and the blended mortality table described in the definition of 
``missing participant annuity assumptions'' in Sec. 2629.2(i)(2), 
the plan administrator determines that the benefit commencing at age 
60 is the most valuable benefit (i.e., the benefit at age 60 is more 
valuable than the benefit at ages 61, 62, 63, 64 or 65). The present 
value as of the deemed distribution date of each dollar of annual 
benefit (payable monthly as a joint and 50 percent survivor annuity) 
is $5.4307 if the benefit begins at age 60. (In accordance with 
Sec. 2619.49(d)(5), the mortality of the spouse during the deferral 
period is ignored.) Thus, without adjustment (loading) for expenses, 
the value of the benefit beginning at age 60 is $41,056 
(12 x $630 x 5.4307). The designated benefit is equal to this value 
plus an expense adjustment of $300, or a total of $41,356.

Appendix B--Examples of Benefit Payments for Missing Participants 
Under Secs. 2629.8 Through 2629.10

    The provisions of Secs. 2629.8 through 2629.10 are illustrated 
by the following examples.
    Example 1. Participant M from Plan B (see Example 2 in Appendix 
A of this part) is located. M's spouse is ten years younger than M. 
M elects to receive benefits in the form of a joint and 50 percent 
survivor annuity commencing at age 62.
    (1) M's designated benefit was $41,356. The unloaded designated 
benefit was $41,056. As of Plan B's deemed distribution date (and 
using the missing participant annuity assumptions), the present 
value per dollar of monthly benefit (payable monthly as a joint and 
50 percent survivor annuity commencing at age 62 and reflecting the 
actual age of M's spouse) is $4.7405. Thus, the monthly benefit to M 
at age 62 is $722 ($41,056 / (4.7405 x 12)). M's spouse will receive 
$361 (50 percent of $722) per month for life after the death of M.
    (2) If M had instead been found to have died on or after the 
deemed distribution date, and M's spouse wanted benefits to commence 
when M would have attained age 62, the same calculation would be 
performed to arrive at a monthly benefit of $361 to M's spouse.
    Example 2. Participant P is a missing participant from Plan C, a 
plan that allows elective lump sums upon plan termination. Plan C's 
administrator pays a designated benefit of $10,000 to the PBGC on 
behalf of P, who was age 30 on the deemed distribution date.
    (1) P's spouse, S, is located and has a death certificate 
showing that P died after the deemed distribution date with S as 
spouse. S is the same age as P, and would like survivor benefits to 
commence immediately, at age 55. S's benefit is the survivor's share 
of the joint and 50 percent survivor annuity which is actuarially 
equivalent, as of the deemed distribution date, to $9,700 (the 
unloaded designated benefit).
    (2) The select and ultimate interest rates on Plan C's deemed 
distribution date were 7.50 percent for the first 20 years and 5.75 
percent thereafter. Using these rates and the blended mortality 
table described in Sec. 2629.2(i)(2), the present value as of the 
deemed distribution date of each dollar of annual benefit (payable 
monthly as a joint and 50 percent survivor annuity) is $2.4048 if 
the benefit begins when S and P would have been age 55. Thus, the 
monthly benefit to S commencing at age 55 is $168 (50 percent of 
$9,700 / (2.4048 x 12)). Since P could have elected a lump sum upon 
plan termination, S may elect a lump sum. S's lump sum is the 
present value as of the deemed distribution date (using the missing 
participant annuity assumptions) of the monthly benefit of $168, 
accumulated with interest at the designated benefit interest rate to 
the date paid.

PART 2606--RULES FOR ADMINISTRATIVE REVIEW OF AGENCY DECISIONS

    2. The authority citation for part 2606 continues to read as 
follows:

    Authority: 29 U.S.C. 1302(b)(3).

    3. In Sec. 2606.1, paragraph (b)(8) is amended by removing the word 
``and''; paragraph (b)(9) is amended by removing the period at the end 
of the paragraph and adding in its place ``; and''; and a new paragraph 
(b)(10) is added to read as follows:


Sec. 2606.1  Purpose and scope.

* * * * *
    (b) Scope. * * *
* * * * *
    (10) Determinations--
    (i) That the amount of a participant's or beneficiary's benefit 
under section 4050(a)(3) of the Act has been correctly computed based 
on the designated benefit paid to the PBGC under section 4050(b)(2) of 
the Act, or
    (ii) That the designated benefit is correct, but only to the extent 
that the benefit to be paid does not exceed the participant's or 
beneficiary's guaranteed benefit.
* * * * *


Sec. 2606.51  [Amended]

    4. Section 2606.51 is amended by removing the words 
``Sec. 2606.1(b)(5) through (9)'' and adding in their place the words 
``Sec. 2606.1(b)(5) through (10)''.

PART 2616--DISTRESS TERMINATIONS OF SINGLE-EMPLOYER PLANS

PART 2617--STANDARD TERMINATIONS OF SINGLE-EMPLOYER PLANS

    5. The authority citations for parts 2616 and 2617 are revised to 
read as follows:

    Authority: 29 U.S.C. 1302(b)(3), 1341, 1344, 1350.


Sec. 2616.2, Sec. 2617.2  [Amended]

    6. In Secs. 2616.2 and 2617.2, the definition of date of 
distribution is amended by removing the period at the end of paragraph 
(2); adding in its place a semicolon; and adding after the semicolon 
the words ``except that date of distribution means the deemed 
distribution date in the case of a designated benefit paid to the PBGC, 
or a benefit provided after the deemed distribution date to a late-
discovered participant, in accordance with part 2629 of this chapter 
(dealing with missing participants).''


Sec. 2616.7, Sec. 2617.8  [Amended]

    7. In Secs. 2616.7 and 2617.8, paragraph (b) is amended by removing 
the words ``Any document'' and adding in their place the words ``Except 
as may otherwise be provided in applicable forms and instructions, any 
document''. 

[[Page 44166]]



Sec. 2616.29, Sec. 2617.28  [Amended]
    8. Paragraph (b) of Sec. 2616.29 and paragraph (h) of Sec. 2617.28 
are amended by adding at the end of Sec. 2616.29(b) and Sec. 2617.28(h) 
the words ``The plan administrator shall be considered to have 
satisfied this requirement if, in accordance with Sec. 2629.11 of this 
chapter, the plan administrator timely files an amended post-
distribution certification that otherwise satisfies all applicable 
requirements.''
    9. In Sec. 2617.28, paragraph (c) is amended by adding at the end a 
new sentence to read as follows:


Sec. 2617.28  Closeout of plan.

* * * * *
    (c) Method of distribution. * * * The plan administrator shall 
comply with part 2629 of this chapter (dealing with missing 
participants), if applicable.
* * * * *
    Issued in Washington, DC, this 21st day of August, 1995.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.

Addendum (Draft forms and instructions for Part 2629)

    (Note: A draft of the missing participant forms and instructions 
follows. These forms and instructions will not appear in the Code of 
Federal Regulations.)

BILLING CODE 7708-01-P

[[Page 44167]]
[GRAPHIC][TIFF OMITTED]TP24AU95.000



[[Page 44168]]
[GRAPHIC][TIFF OMITTED]TP24AU95.001



[[Page 44169]]
[GRAPHIC][TIFF OMITTED]TP24AU95.002



[[Page 44170]]
[GRAPHIC][TIFF OMITTED]TP24AU95.003



[[Page 44171]]
[GRAPHIC][TIFF OMITTED]TP24AU95.004



[[Page 44172]]
[GRAPHIC][TIFF OMITTED]TP24AU95.005



[[Page 44173]]
[GRAPHIC][TIFF OMITTED]TP24AU95.006



[[Page 44174]]
[GRAPHIC][TIFF OMITTED]TP24AU95.007



[[Page 44175]]
[GRAPHIC][TIFF OMITTED]TP24AU95.008



[[Page 44176]]
[GRAPHIC][TIFF OMITTED]TP24AU95.009



[[Page 44177]]
[GRAPHIC][TIFF OMITTED]TP24AU95.010



[[Page 44178]]
[GRAPHIC][TIFF OMITTED]TP24AU95.011



[[Page 44179]]
[GRAPHIC][TIFF OMITTED]TP24AU95.012



[FR Doc. 95-21065 Filed 8-23-95; 8:45 am]
BILLING CODE 7708-01-C