Proposed Changes to Abandoned Plan Regulations

Contemporaneously with issuing proposed changes to PTE 2006-06, the DOL has proposed changes to its Abandoned Plan regulations.

Document Excerpt

SUMMARY: This document contains proposed amendments to three
regulations previously published under the Employee Retirement Income
Security Act of 1974 that facilitate the termination of, and
distribution of benefits from, individual account pension plans that
have been abandoned by their sponsoring employers. The principal
amendments propose to permit bankruptcy trustees to use the
Department’s Abandoned Plan Program to terminate and wind up the plans
of sponsors in liquidation under chapter 7 of the U.S. Bankruptcy Code.
In addition, other technical amendments are proposed to improve the
operation of the regulations. If adopted, the amendments would affect
employee benefit plans, primarily small defined contribution plans,
participants and beneficiaries, service providers, and individuals
appointed to serve as trustees under chapter 7 of the U.S. Bankruptcy


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