[Federal Register Volume 60, Number 231 (Friday, December 1, 1995)]
[Rules and Regulations]
[Pages 61740-61747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29120]




[[Page 61739]]

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Part II





Pension Benefit Guaranty Corporation





_______________________________________________________________________



29 CFR Part 2606, et al.



Missing Participants; Final Rule

  Federal Register / Vol. 60, No. 231 / Friday, December 1, 1995 / 
Rules and Regulations   

[[Page 61740]]


PENSION BENEFIT GUARANTY CORPORATION

29 CFR Parts 2606, 2616, 2617, and 2629

RIN 1212-AA81


Missing Participants

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.

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

SUMMARY: The Pension Benefit Guaranty Corporation is amending its 
regulations 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.

EFFECTIVE DATE: January 1, 1996. The missing participants program is 
effective for distributions in plan years beginning on or after January 
1, 1996.

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: On August 24, 1995, the PBGC published in 
the Federal Register (60 FR 44158) a proposed rule to implement section 
4050 of ERISA.
    When a participant or beneficiary cannot be located in a standard 
termination a plan administrator can either purchase an annuity or pay 
funds to the PBGC. If funds are paid to the PBGC, the PBGC will search 
for the participant or beneficiary and pay benefits to those who are 
located.
    The missing participants regulation describes the ``diligent 
search'' that must be made for a missing participant before funds are 
paid to the PBGC. (The term ``missing participant'' includes 
beneficiaries as well as participants, and thus may include alternate 
payees under qualified domestic relations orders.) It also sets forth 
rules on how to determine the amount to be paid to the PBGC (the 
``designated benefit''), how to pay funds and submit information to the 
PBGC, and how the PBGC will pay benefits when missing participants (or 
their survivors) are found.
    There were five statements commenting on the rule.

Diligent Search

    A plan administrator must conduct a diligent search before paying a 
missing participant's benefit to the PBGC. Commenters suggested that 
the PBGC should not require plan administrators to use a commercial 
locator service. They suggested that it should be sufficient if the 
plan administrator uses the Internal Revenue Service or Social Security 
Administration letter-forwarding programs, or simply uses the search 
methods required by the prudence requirements of Title I of ERISA. One 
commenter suggested that the PBGC should allow searches to be conducted 
by persons other than the plan administrator and to start before the 
plan begins the termination process.
    The PBGC searches for participants in plans that the PBGC trustees. 
It is the PBGC's experience that commercial locator services are cost-
effective, timely, and thorough. The IRS and SSA programs simply 
forward letters, and a missing participant who receives a letter may or 
may not contact the plan. Furthermore, IRS and SSA letter forwarding 
times may vary, and the forwarding area may in some cases be limited to 
one region of the country.
    The diligent search requirement is independent of the prudence 
requirement of ERISA. The diligent search requirement is intended to 
ensure that plan administrators make every effort to search out a 
missing participant before turning the effort over to the government.
    The PBGC is changing the regulation to allow a search by someone 
other than the plan administrator, as long as the plan administrator 
certifies on the missing participant forms that a diligent search was 
made, and to allow searches to commence up to six months before the 
termination process begins. The final regulation also makes clear that 
missing participants cannot be charged, nor their benefits reduced, to 
pay search costs.

Payments to the PBGC (Designated Benefit)

    One commenter questioned the assumptions used for calculating the 
designated benefit. The commenter felt that the $300 administrative 
load was inappropriate, especially for small benefits, that the 
designated benefit should not be based on the ``most valuable'' 
benefit, and that, in most cases, the plan administrator should be able 
to use plan assumptions.
    The regulations include an explicit $300 per participant 
administrative load that the plan administrator must pay when valuing 
the participant's benefit using the missing participant annuity 
assumptions. This load is a simplified version of the administrative 
load that must be paid under the PBGC's single-employer annuity 
valuation regulation. (The ``missing participant lump sum assumptions'' 
include an implicit load; insurance company annuity rates include 
similar loads.) The final regulation provides that the $300 load will 
not apply to benefits whose value is $3,500 or less.
    The final regulation retains the proposed structure of the 
designated benefit determination rules. Use of the most valuable 
benefit is consistent with insurance company annuity pricing practices. 
Use of the PBGC annuity assumptions is consistent with section 
4050(b)(2)(C), which makes the designated benefit equal to the greater 
of the lump sum (under plan assumptions) or the value of the annuity 
(under PBGC assumptions).

Benefit Payments by the PBGC

    The PBGC received no comments on provisions regarding its payment 
of benefits, but is making clarifications in those provisions.

Procedural Requirements

    One commenter stated that the PBGC's standard termination process 
already had sufficient procedural deadlines and that the PBGC should 
not add additional deadlines for the missing participants program. The 
commenter also felt that the six-year recordkeeping requirement was too 
long.
    The regulation coordinates the missing participant filing 
requirements with the termination requirements. The proposed 
regulation's changes from the standard termination deadlines provide 
relief from situations where, late in the termination process, the plan 
administrator located a missing participant (``late-discovered 
participant'') or discovered that a participant was missing 
(``recently-missing participant''). The final regulation provides 
further relief for these situations by allowing the PBGC in its sole 
discretion, where there are unusual circumstances, to grant additional 
extensions.
    The final regulation leaves the recordkeeping requirement as six 
years. This parallels the recordkeeping period for the rest of the 
termination program and also the recordkeeping provisions of section 
107 of ERISA.
    Finally, in response to a commenter's question, the PBGC reminds 
plan administrators that ERISA section 4071 prescribes penalties for 
failure to provide certain material information timely, including 
information under the missing participants regulation. 

[[Page 61741]]


Forms and Instructions

    One commenter claimed that the PBGC does not need the information 
in items 3, 4, and 5 of Attachment B to Schedule MP. This is minimal 
and simple information that tells the PBGC what benefit to pay and when 
to pay it. The information is essential to the proper functioning of 
the missing participants program.
    In response to a comment, the PBGC has revised the instructions for 
Schedule MP to clarify that unavailable or inapplicable information 
need not be submitted. The PBGC has also made other minor modifications 
to the missing participant forms and instructions.
    The PBGC has implemented the revisions to Forms 501 and 602 and 
their instructions that were published with the proposed missing 
participants regulation. The termination forms booklets, which will 
include Schedule MP (with attachments and instructions), can be 
obtained from the PBGC's Standard Termination Compliance Division, 1200 
K Street, N.W., Suite 930, Washington, DC 20005-4026, or by calling 
202-326-4000 (202-326-4179 for hearing-impaired persons).

Compliance With Rulemaking and Paperwork Guidelines

    The PBGC has determined that this action is not a ``significant 
regulatory action'' under the criteria 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 
additional economic impact on a substantial number of small entities, 
given existing procedures. 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.
    The collections of information contained in this part, and the 
forms and instructions to be used under the missing participants 
program, have been approved by the Office of Management and Budget 
under OMB control number 1212-0036. An agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless it displays a currently valid OMB control number.

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, 29 CFR chapter XXVI is amended 
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--beneficiary of deceased 
missing participant.
2629.11  Limitations.
2629.12  Special rules.
2629.13  OMB control number.

Appendix A to Part 2629--Examples of designated benefit determinations 
for missing participants under Sec. 2629.5.

Appendix B to Part 2629--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 for 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 a payment made in accordance with 
Sec. 2629.12) is in a plan year beginning on or after January 1, 1996.


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 (determined without regard to the 
provisions of this part) 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.
    (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; 

[[Page 61742]]

    (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, 1995-1 C.B. 80 (Cumulative Bulletins are 
available from the Superintendent of Documents, Government Printing 
Office, Washington, DC 20402);
    (3) Without using the expected retirement age assumptions in 
Subpart D to part 2619 of this chapter;
    (4) Without making the adjustment for expenses provided for in 
Sec. 2619.49(a)(4) of this chapter; and
    (5) By adding $300, as an adjustment (loading) for expenses, for 
each missing participant whose designated benefit without such 
adjustment would be greater than $3,500.
    (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 under a plan, that 
the plan administrator has made or (except for administrative delay or 
a waiting period) would have made one or more benefit payments.
    (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 
whom the plan administrator discovers to be a missing participant on or 
after the 90th day before the deemed distribution date.
    (p) Unloaded designated benefit means the designated benefit 
reduced by $300; except that the reduction shall not apply in the case 
of a designated benefit determined using the missing participant 
annuity assumptions without adding the $300 load described in paragraph 
(i)(5) of this section.


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 from an insurer an irrevocable commitment that 
satisfies the requirements of 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 diligent search shall be made for each 
missing participant whose designated benefit (or voluntary employee 
contributions under Sec. 2629.12(d)(2)) 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 search--
    (1) Begins not more than 6 months before notices of intent to 
terminate are issued and is carried on 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) Includes inquiry of any plan beneficiaries (including alternate 
payees) of the missing participant whose names and addresses are known 
to the plan administrator; and
    (3) Includes use of a commercial locator service to search for the 
missing participant (without charge to the missing participant or 
reduction of the missing participant's plan benefit).


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 maximum 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 as of the deemed distribution date 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 as of the deemed distribution date, the most valuable 
benefit is the pay status benefit. For a missing participant whose 
benefit is not in pay status as of the deemed distribution date, 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 
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. 

[[Page 61743]]

    (2) Participant. A missing participant who is a participant, and 
whose benefit is not in pay status as of the deemed distribution date, 
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 as of the deemed distribution date, the form 
and beneficiary of the participant's benefit are the form of benefit 
and beneficiary of the pay status benefit.
    (3) Beneficiary. A missing participant who is a beneficiary, and 
whose benefit is not in pay status as of the deemed distribution date, 
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 as of the deemed 
distribution date, the form and beneficiary of the beneficiary's 
benefit are the form of benefit and beneficiary of the pay status 
benefit.
    (4) Examples. See Appendix A to this Part 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 so indicate in that filing and 
submit an amended filing (including an amended post-distribution 
certification) within 120 days after the deemed distribution date 
(subject to extension under Sec. 2629.12(h)) in accordance with the 
missing participant forms and instructions.
    (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 (subject to extension under Sec. 2629.12(h)) 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. Interest assessed under this paragraph 
shall be deemed paid in full if payment of the amount assessed is 
received by the PBGC within 30 days after the date of a PBGC bill for 
such amount.
    (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, determining benefits to be 
paid by the PBGC under this part, and substantiating diligent searches.
    (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 (or his or her beneficiary or estate) for whom 
a plan administrator paid a designated benefit to the PBGC, 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 to this part 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 

[[Page 61744]]
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 elected by the missing 
participant (or the beneficiary), which shall not be 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 benefit paid will be actuarially equivalent to the 
designated benefit, i.e., each monthly (or other periodic) 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 the PBGC begins paying benefits.
    (a) Missing participant whose benefit was not in pay status as of 
the deemed distribution date. The PBGC will pay the benefit of a 
missing participant whose benefit was not in pay status as of the 
deemed distribution date 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 (which shall 
not be 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 benefit that is 
actuarially equivalent to the unloaded designated benefit, i.e., each 
monthly (or other periodic) 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 was in pay status as of the 
deemed distribution date. The PBGC will pay the benefit of a missing 
participant whose benefit was in pay status as of the deemed 
distribution date as follows:
    (1) Time and form of benefit. The PBGC will pay the benefit in the 
form that was in pay status, beginning when the missing participant is 
located.
    (2) Amount of benefit. The PBGC will pay the monthly (or other 
periodic) amount of the pay status benefit, 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--beneficiary of 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 deceased missing participant's benefit was not in pay status 
as of the deemed distribution date. The PBGC will pay a benefit with 
respect to a deceased missing participant whose benefit was not in pay 
status as of the deemed distribution date as follows:
    (1) General rule--(i) Beneficiary. The PBGC will pay a benefit to 
the surviving spouse of a missing participant who was a participant 
(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 monthly (or other 
periodic) 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 (which shall not 
be 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 deceased missing participant's benefit was in pay status as 
of the deemed distribution date. The PBGC will pay a benefit with 
respect to a deceased missing participant whose benefit was in pay 
status as of the deemed distribution date as follows.
    (1) Beneficiary. The PBGC will pay a benefit to the beneficiary (if 
any) of the benefit that was in pay status as of the deemed 
distribution date.
    (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 

[[Page 61745]]
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 
when the lump sum is paid. 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 lump 
sum payment, the PBGC will pay the lump sum to such beneficiary.
    (4) Time of benefit. The PBGC will pay the survivor benefit 
beginning when the beneficiary is located.
    (5) Spouse deceased. If the PBGC locates the estate of the deceased 
missing participant's spouse under circumstances where a benefit would 
have been paid under this paragraph (b) if the spouse had been located 
while alive, the PBGC shall pay to the spouse's estate a lump sum 
payment computed in the same manner as provided for in paragraph (b)(2) 
of this section based on the period from the missing participant's 
death to the death of the spouse.


Sec. 2629.11  Limitations.

    (a) Exclusive benefit. The benefits provided for under this part 
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 
notified of his or her right to a benefit.


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 (determined without regard to the provisions 
of this part) 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 (subject to extension under Sec. 2629.12(h)).
    (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 or section 414(p) of 
the Code 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 
made mandatory contributions (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. Unless the 
PBGC otherwise determines, 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 of 
residual assets is made to the PBGC. 

[[Page 61746]]

    (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) plus any benefit to which funds under section 4022(c) of 
the Act have been allocated.
    (g) Similar rules for later payments. If the PBGC determines that 
one or more persons should receive benefits (which may be in addition 
to benefits already provided) in order for a plan termination to be 
valid (e.g., upon audit of the termination), 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.
    (h) Discretionary extensions. The PBGC may in its sole discretion 
extend the 120-day amended filing periods in Sec. 2629.6(a) (2)(ii) and 
(3) and the 90-day distribution period in paragraph (a) of this 
section--
    (1) Where a recently-missing participant becomes a late-discovered 
participant,
    (2) Where the PBGC returns the designated benefit of a missing 
participant who is located quickly to the plan administrator under 
Sec. 2629.12(b), or
    (3) In other unusual circumstances.
    (i) Payments beginning after age 70\1/2\. If the PBGC begins paying 
an annuity under Sec. 2629.9(a) or 2629.10(a) to a participant or a 
participant's spouse after the January 1 following the date when the 
participant attained or would have attained age 70\1/2\, the PBGC shall 
pay to the participant or the spouse (or their respective estates) or 
both, as appropriate, the lump sum equivalent of the past annuity 
payments the participant and spouse would have received if the PBGC had 
begun making payments on such January 1. The PBGC shall also pay lump 
sum equivalents under this paragraph (i) if the PBGC locates the estate 
of the participant or spouse after both are deceased. (Nothing in this 
paragraph (i) shall increase the total value of the benefits payable 
with respect to a missing participant.)


Sec. 2629.13  OMB control number.

    The collection of information requirements contained in this part 
have been approved by the Office of Management under OMB Control Number 
1212-0036.

Appendix A to Part 2629--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 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 to Part 2629--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 on or 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 (as permitted by the plan). 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 

[[Page 61747]]
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.


Secs. 2616.2, 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. 2617.3  [Amended]

    7. In Sec. 2617.3, paragraph (b)(5) is amended by removing the 
words ``and (f), in satisfaction'' and adding in their place the words 
``and (f) (or, where applicable, within the time prescribed in part 
2629 of this chapter), in satisfaction''.


Sec. 2616.6  [Amended]


Sec. 2617.6  [Amended]

    8. In Secs. 2616.6 and 2617.6, paragraph (a) is amended by removing 
the words ``this section, when a plan'' and adding in their place the 
words ``this section (or, where applicable, in part 2629 of this 
chapter), when a plan''.


Secs. 2616.7, 2617.8  [Amended]

    9. 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''; and by removing the words ``Case Operations and Compliance 
Department'' and adding in their place the words ``Standard Termination 
Compliance Division, Insurance Operations Department''.


Sec. 2617.25  [Amended]

    10. In Sec. 2617.25, paragraph (b)(2)(i) is amended by removing the 
words ``Case Operations and Compliance Department'' and adding in their 
place the words ``Standard Termination Compliance Division, Insurance 
Operations Department''.


Sec. 2616.29  [Amended]

    11. Paragraph (a)(1) of Sec. 2616.29 is amended by adding before 
the period at the end of the first sentence the words ``or, where 
applicable, within the time prescribed in part 2629 of this chapter''.


Sec. 2617.28  [Amended]

    12. Paragraph (a)(1) of Sec. 2617.28 is amended by adding 
parentheses around the words ``or, if applicable, the date on which the 
PBGC revokes the notice of noncompliance'' and by adding before the 
period at the end of the paragraph the words ``or, where applicable, 
within the time prescribed in part 2629 of this chapter''.


Secs. 2616.29, 2617.28  [Amended]

    13. 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. 2629.6(a) of 
this chapter, the plan administrator timely files an amended post-
distribution certification that otherwise satisfies all applicable 
requirements.''
    14. 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, D.C., this 22nd day of November, 1995.
Robert B. Reich,
Chairman, Board of Directors, Pension Benefit Guaranty Corporation.

    Issued on the date set forth above pursuant to a resolution of the 
Board of Directors authorizing its Chairman to issue this final rule.
James J. Keightley,
Secretary, Board of Directors, Pension Benefit Guaranty Corporation.
[FR Doc. 95-29120 Filed 11-30-95; 8:45 am]
BILLING CODE 7708-01-P