The Pension Benefits Guaranty Corp. has published a proposed rule that would expand its current Missing Participants Program to cover participants in terminating 401(k) plans.
Under the proposal, sponsors terminating 401(k) plans would be able to use the PBGC to warehouse the accounts of missing participants — those workers that have separated from an employer but left their assets in plan. The PBGC would then track the participants with the goal of ultimately reconnecting them with their assets.
Voluntary participation
Participation in the program would be voluntary, and would cost sponsors a fee of $35 per missing participant, which “would not exceed PBGC’s costs” to transfer and hold the assets, and then track down participants, according to the proposed rule. There would be no charge to track accounts with less than $250.
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