Pension Benefit Guaranty Corporation (PBGC) Coverage May No Longer Apply to Puerto Rico- Only Qualified Retirement Plans

2014-08-06T16:51:11-07:00August 6th, 2014|Categories: PBGC|Tags: , |

Employers that sponsor defined benefit qualified retirement plans benefiting only Puerto Rico employees should be aware that Pension Benefit Guaranty Corporation (PBGC) coverage may no longer apply. Last year, the PBGC withdrew old prior opinion letters (Opinion Letters 77-172 and 85-19) regarding PBGC coverage in Puerto Rico and Guam. Those opinion letters articulated the PBGC’s position at that time, that Title IV of the Employee Retirement Income Security Act (ERISA) (providing for PBGC coverage), may apply to defined benefit plans covering only Puerto Rico participants if [...]