PART 4050—MISSING PARTICIPANTS Authority: 29 U.S.C. 1302(b)(3), 1350. Source: 82 FR 60818, Dec. 22, 2017, unless otherwise noted. Subpart A—Single-Employer Plans Covered by Title IV § 4050.101 Purpose and scope. (a) In general. (1) Is described in section 4021(a) of ERISA and not in any paragraph of section 4021(b) of ERISA and (2) Terminates in a standard termination or in a distress termination described in section 4041(c)(3)(B)(i) or (ii) of ERISA (“sufficient distress termination”). (b) Plans that terminate but do not close out. (c) Individual account plans. § 4050.102 Definitions. The following terms are defined in § 4001.2 of this chapter: Annuity, Code, ERISA, insurer, irrevocable commitment, PBGC, person, and plan administrator. In addition, for purposes of this subpart: Accrual cessation date Accumulated single sum Benefit determination date Benefit transfer amount Close-out close out De minimis Distributee Missing, (1) The plan administrator does not know with reasonable certainty the location of the distributee. (2) Under the terms of the plan, the distributee's benefit is to be paid in a lump sum without the distributee's consent, and the distributee has not responded to a notice about the distribution of the lump sum. (3) Under the terms of the plan and any election made by the distributee, the distributee's benefit is to be paid in a lump sum, but the distributee does not accept the lump sum. For this purpose, a lump sum paid by check is not accepted if the check remains uncashed after— (i) A “cash-by” date prescribed (on the check or in an accompanying notice) that is at least 45 days after the issuance of the check, or (ii) If no such “cash-by” date is so prescribed, the check's stale date. Missing participants forms and instructions Missing participants interest rate Normal retirement date Pay-status pay status (1) With respect to a benefit, that payment of the benefit has actually started before the benefit determination date; or (2) With respect to a distributee, that payment of the distributee's benefit has actually started before the benefit determination date. PBGC missing participants assumptions (1) The present value is determined as of the benefit determination date instead of the plan termination date. (2) The mortality assumption is the mortality table in § 4044.53(h) of this chapter. (3) No adjustment is made for loading expenses under § 4044.52(d) of this chapter. (4) The interest assumption is the assumption for valuing benefits under § 4044.54 of this chapter applicable to valuations occurring on December 31 of the calendar year preceding the calendar year in which the benefit determination date occurs. However, for benefit determination dates July 31 through December 31 of 2024, the interest assumption is the assumption for valuing benefits under § 4044.54 of this chapter applicable to valuations occurring on July 31, 2024. (5) The assumed payment form of a benefit not in pay status is a straight life annuity. (6) Pre-retirement death benefits are disregarded. (7) Notwithstanding the expected retirement age (XRA) assumptions in §§ 4044.55 through 4044.58 of this chapter— (i) In the case of a participant who is not in pay status and whose normal retirement date is on or after the benefit determination date, benefits are assumed to commence at the XRA, determined using the high retirement rate category under table II-C (Expected Retirement Ages for Individuals in the High Category) in § 4044.58 of this chapter; (ii) In the case of a participant who is not in pay status and whose normal retirement date is before the benefit determination date, benefits are assumed to commence on the participant's normal retirement date (or accrual cessation date if later); (iii) In the case of a participant who is in pay status, benefits are assumed to commence on the date on which benefits actually commenced; and (iv) In the case of a beneficiary, benefits are assumed to commence on the benefit determination date or, if later, the earliest date the beneficiary can begin to receive benefits. Plan lump sum assumptions (1) If the plan specifies actuarial assumptions and methods to be used to calculate a lump sum distribution, such actuarial assumptions and methods, or (2) Otherwise, the actuarial assumptions specified under section 205(g)(3) of ERISA and section 417(e)(3) of the Code, determined as of the benefit determination date, including use of the missing participants interest rate to calculate the present value as of the benefit determination date of a payment or payments missed in the past. QDRO Qualified survivor (1) A person who survives the participant or beneficiary and is entitled under applicable provisions of a QDRO to receive the benefit; (2) A person that is identified by the plan in a submission to PBGC by the plan as being entitled under applicable plan provisions (including elections, designations, and waivers consistent with such provisions) to receive the benefit; or (3) If no such person is so entitled, a survivor of the participant or beneficiary who is the participant's or beneficiary's living— (i) Spouse, or if none, (ii) Child, or if none, (iii) Parent, or if none, (iv) Sibling. Subpart A plan plan [82 FR 60818, Dec. 22, 2017, as amended at 89 FR 48308, June 6, 2024] § 4050.103 Duties of plan administrator. (a) Providing for benefits. (1) By purchasing an irrevocable commitment from an insurer, or (2) By— (i) Determining the distributee's benefit transfer amount under paragraph (d) of this section, and (ii) Transferring to PBGC as described in this subpart A an amount equal to the distributee's benefit transfer amount. (b) Diligent search. (c) Filing with PBGC. (d) Benefit transfer amount. (1) De minimis. (2) Non-de minimis; single sum payment cannot be elected. (i) For a missing distributee not in pay status whose normal retirement date (or accrual cessation date if later) precedes the benefit determination date, the aggregate value of payments of the straight life annuity that would have been payable beginning on the normal retirement date (or accrual cessation date if later), accumulated at the missing participants interest rate from the date each payment would have been made to the benefit determination date, assuming that the distributee survived to the benefit determination date, as determined by the plan administrator; or (ii) For a missing distributee in pay status, the aggregate value of payments of the pay status annuity due but not made, accumulated at the missing participants interest rate from each payment due date to the benefit determination date, assuming that the distributee survived to the benefit determination date. (3) Non-de minimis; single sum payment can be elected. § 4050.104 Diligent search. (a) Search requirement. (1) For any distributee, regardless of the size of the distributee's benefit, the commercial locator service method described in paragraph (b) of this section; or (2) For a distributee whose normal retirement benefit is not more than $50 per month, the records search method described in paragraph (c) of this section. (b) Commercial locator service method In general. (2) Meaning of “commercial locator service.” (c) Records search method In general. (i) Searching the records of the plan for information to locate the distributee. (ii) Searching the records of the plan's contributing sponsor that is the most recent employer of the distributee for information to locate the distributee. (iii) Searching the records of each retirement or welfare plan of the plan's contributing sponsor in which the distributee was a participant for information to locate the distributee. (iv) Contacting each beneficiary of the distributee identified from the records referred to in paragraphs (c)(1)(i), (ii), and (iii) of this section for information to locate the distributee. (v) Using an internet search method for which no fee is charged, such as a search engine, a network database, a public record database (such as those for licenses, mortgages, and real estate taxes) or a “social media” website. (2) Limits on method. (i) Searching is not feasible to the extent that, as a practical matter, it is thwarted by legal or practical lack of access to records, and (ii) Searching is not affordable to the extent that the cost of searching (including the value of labor) is more than a reasonable fraction of the benefit of the distributee being searched for. In no event would searching need to be pursued beyond the point where the cost equals the value of the benefit. (d) Time frame. § 4050.105 Filing with PBGC. (a) What to file. (1) The benefit transfer amount for the missing distributee; (2) If the benefit transfer amount is paid more than 90 days after the benefit determination date, interest on the benefit transfer amount computed at the missing participants interest rate for the period beginning on the 90th day after the benefit determination date and ending on the date the benefit transfer amount is paid to PBGC; and (3) Any fee provided for in the missing participants forms and instructions. (b) When to file. (c) Place, method and date of filing; time periods. (2) For rules about permissible methods of filing with PBGC under this subpart, see subpart A of part 4000 of this chapter. (3) For rules about the date that a submission under this subpart was filed with PBGC, see subpart C of part 4000 of this chapter. (4) For rules about any time period for filing under this subpart, see subpart D of part 4000 of this chapter. (d) Supplemental information. (e) Reliance. § 4050.106 Missing participant benefits. (a) In general Benefit transfer amount not paid. (2) Benefit transfer amount paid. (b) Benefits for missing distributees who are participants. (c) De minimis benefit. (d) Non-de minimis benefit of unmarried participant. (1) Annuity. (i) Straight life annuity. (ii) Other form of annuity. (2) Make-up amount. (3) Lump sum. (e) Non-de minimis benefit of married participant. (1) Annuity. (i) Joint and survivor annuity. (ii) Other form of annuity. (2) Make-up amount. (3) Lump sum. (f) Benefits with respect to deceased missing distributees who were participants. (g) De minimis benefit. (h) Non-de minimis benefit; unmarried participant. (1) Death before normal retirement date. (2) Death after normal retirement date. (i) Non-de minimis benefit; married participant with living spouse. (1) Annuity. (i) The date when the participant would have reached age 55, if the participant died before that date, or (ii) The participant's date of death, if the participant died between age 55 and the normal retirement date (or accrual cessation date if later), or (iii) The normal retirement date (or accrual cessation date if later), if the participant died after that date. (2) Make-up amounts. (i) Payments from participant's death or 55th birthday to commencement of survivor annuity. (ii) Payments from normal retirement date to participant's death. (3) Small benefit. (j) Non-de minimis benefit; married participant with deceased spouse. (1) Payments from participant's death or 55th birthday to spouse's death. (2) Payments from normal retirement date to participant's death. (k) Benefits under contributory plans. (l) Date for determining marital status. (1) The date the participant receives or begins to receive a benefit, or (2) The date the participant dies. § 4050.107 PBGC discretion. PBGC may in appropriate circumstances extend deadlines, excuse noncompliance, and grant waivers with regard to any provision of this subpart to promote the purposes of the missing participants program and title IV of ERISA. Like circumstances will be treated in like manner under this section. Subpart B—Defined Contribution Plans § 4050.201 Purpose and scope. (a) In general. (1) That— (i) Is a defined contribution (individual account) plan described in section 3(34) of ERISA; or (ii) Is treated as a defined contribution (individual account) plan under section (3)(35) of ERISA (to the extent so treated); (2) That is described in section 4021(a) of ERISA and not in any paragraph of section 4021(b) of ERISA other than paragraph (1), (5), (12), or (13), including a plan described in section 403(b) of the Code under which benefits are provided through custodial accounts described in section 403(b)(7) of the Code; (3) That, if it is a transferring plan, pays all benefit transfer amounts to PBGC in money, consistent with plan provisions and applicable law; and (4) That terminates and closes out. (b) Defined contribution plans that are part of defined benefit plans. (c) Defined contribution plans that are abandoned plans. § 4050.202 Definitions. The following terms are defined in § 4001.2 of this chapter: Annuity, Code, ERISA, PBGC, and person. In addition, for purposes of this subpart: Accumulated single sum Benefit conversion assumptions Benefit transfer amount Close-out close out De minimis Distributee Missing, (1) The plan does not know with reasonable certainty the location of the distributee. (2) The distributee has not elected a form of distribution in response to a notice about the distribution. (3) Under the terms of the plan and any election made by the distributee, the distributee's benefit is to be paid in a lump sum, but the distributee does not accept the lump sum. For this purpose, a lump sum paid by check is not accepted if the check remains uncashed after— (i) A “cash-by” date prescribed (on the check or in an accompanying notice) that is at least 45 days after the issuance of the check, or (ii) If no such “cash-by” date is so prescribed, the check's stale date. Missing participants forms and instructions Missing participants interest rate Notifying plan QDRO Qualified survivor (1) A person who survives the participant or beneficiary and is entitled under applicable provisions of a QDRO to receive the benefit; (2) A person that is identified by the plan in a submission to PBGC by the plan as being entitled under applicable plan provisions (including elections, designations, and waivers consistent with such provisions) to receive the benefit; or (3) If no such person is so entitled, a survivor of the participant or beneficiary who is the participant's or beneficiary's living— (i) Spouse, or if none, (ii) Child, or if none, (iii) Parent, or if none, (iv) Sibling. Subpart B plan plan Transferring plan § 4050.203 Options and duties of plan. (a) Options. (1) Will be a “transferring plan,” that is, will pay a benefit transfer amount to PBGC for each distributee who is missing upon close-out of the plan and will be bound by the provisions of this subpart B to the extent that they apply to transferring plans, or (2) Will be a “notifying plan,” that is, will notify PBGC of the disposition of the benefits of each distributee identified in the filing who is missing upon close-out of the plan and will, with respect to those distributees, be bound by the provisions of this subpart B to the extent that they apply to notifying plans. (b) Diligent search In general. (2) Notifying plans. (c) Filing with PBGC In general. (2) Notifying plans. § 4050.204 Diligent search. (a) Search requirement In general. (2) Notifying plans. (b) Time frame. § 4050.205 Filing with PBGC. (a) What to file. (1) The benefit transfer amount for the missing distributee; and (2) Any fee provided for in the missing participants forms and instructions. (b) When to file. (c) Place, method and date of filing; time periods. (2) For rules about permissible methods of filing with PBGC under this subpart, see subpart A of part 4000 of this chapter. (3) For rules about the date that a submission under this subpart was filed with PBGC, see subpart C of part 4000 of this chapter. (4) For rules about any time period for filing under this subpart, see subpart D of part 4000 of this chapter. (d) Supplemental information. (e) Reliance. § 4050.206 Missing participant benefits. (a) In general Notifying plan. (2) Transferring plan. (b) Benefits for missing distributees who are participants. (c) De minimis benefit. (d) Non-de minimis benefit of unmarried participant. (1) Annuity. (2) Lump sum. (e) Non-de minimis benefit of married participant. (1) Annuity. (i) Joint and survivor annuity. (ii) Other form of annuity. (2) Lump sum. (f) Benefits with respect to deceased missing distributees who were participants. (g) De minimis benefit. (h) Non-de minimis benefit; non-spousal qualified survivor. (i) Non-de minimis benefit; surviving spouse is qualified survivor. (1) Annuity. (2) Lump sum. (j) Date for determining marital status. (1) The date the participant receives or begins to receive a benefit, or (2) The date the participant dies. § 4050.207 PBGC discretion. PBGC may in appropriate circumstances extend deadlines, excuse noncompliance, and grant waivers with regard to any provision of this subpart to promote the purposes of the missing participants program and title IV of ERISA. Like circumstances will be treated in like manner under this section. Subpart C—Certain Defined Benefit Plans Not Covered by Title IV § 4050.301 Purpose and scope. (a) In general. (1) Is described in section 4021(a) of ERISA and not in any paragraph of section 4021(b) of ERISA other than paragraph (13), and (2) Terminates and closes out with sufficient assets to satisfy all liabilities with respect to employees and their beneficiaries. (b) Individual account plans. § 4050.302 Definitions. The following terms are defined in § 4001.2 of this chapter: Annuity, Code, ERISA, PBGC, person, and plan administrator. In addition, for purposes of this subpart: Accrual cessation date Accumulated single sum Benefit determination date Benefit transfer amount Close-out close out De minimis Distributee Missing, (1) The plan administrator does not know with reasonable certainty the location of the distributee. (2) Under the terms of the plan, the distributee's benefit is to be paid in a lump sum without the distributee's consent, and the distributee has not responded to a notice about the distribution of the lump sum. (3) Under the terms of the plan and any election made by the distributee, the distributee's benefit is to be paid in a lump sum, but the distributee does not accept the lump sum. For this purpose, a lump sum paid by check is not accepted if the check remains uncashed after— (i) A “cash-by” date prescribed (on the check or in an accompanying notice) that is at least 45 days after the issuance of the check, or (ii) If no such “cash-by” date is so prescribed, the check's stale date. Missing participants forms and instructions Missing participants interest rate Normal retirement date Notifying plan Pay-status pay status (1) With respect to a benefit, that payment of the benefit has actually started before the benefit determination date; or (2) With respect to a distributee, that payment of the distributee's benefit has actually started before the benefit determination date. PBGC missing participants assumptions (1) The present value is determined as of the benefit determination date instead of the plan termination date. (2) The mortality assumption is the mortality table in § 4044.53(h) of this chapter. (3) No adjustment is made for loading expenses under § 4044.52(d) of this chapter. (4) The interest assumption is the assumption for valuing benefits under § 4044.54 of this chapter applicable to valuations occurring on December 31 of the calendar year preceding the calendar year in which the benefit determination date occurs. However, for benefit determination dates July 31 through December 31 of 2024, the interest assumption is the assumption for valuing benefits under § 4044.54 of this chapter applicable to valuations occurring on July 31, 2024. (5) The assumed payment form of a benefit not in pay status is a straight life annuity. (6) Pre-retirement death benefits are disregarded. (7) Notwithstanding the expected retirement age (XRA) assumptions in §§ 4044.55 through 4044.58 of this chapter— (i) In the case of a participant who is not in pay status and whose normal retirement date is on or after the benefit determination date, benefits are assumed to commence at the XRA, determined using the high retirement rate category under table II-C (Expected Retirement Ages for Individuals in the High Category) in § 4044.58 of this chapter; (ii) In the case of a participant who is not in pay status and whose normal retirement date is before the benefit determination date, benefits are assumed to commence on the participant's normal retirement date (or accrual cessation date if later); (iii) In the case of a participant who is in pay status, benefits are assumed to commence on the date on which benefits actually commenced; and (iv) In the case of a beneficiary, benefits are assumed to commence on the benefit determination date or, if later, the earliest date the beneficiary can begin to receive benefits. Plan lump sum assumptions (1) If the plan specifies actuarial assumptions and methods to be used to calculate a lump sum distribution, such actuarial assumptions and methods, or (2) Otherwise, the actuarial assumptions specified under section 205(g)(3) of ERISA and section 417(e)(3) of the Code, determined as of the benefit determination date, including use of the missing participants interest rate to calculate the present value as of the benefit determination date of a payment or payments missed in the past. QDRO Qualified survivor (1) A person who survives the participant or beneficiary and is entitled under applicable provisions of a QDRO to receive the benefit; (2) A person that is identified by the plan in a submission to PBGC by the plan as being entitled under applicable plan provisions (including elections, designations, and waivers consistent with such provisions) to receive the benefit; or (3) If no such person is so entitled, a survivor of the participant or beneficiary who is the participant's or beneficiary's living— (i) Spouse, or if none, (ii) Child, or if none, (iii) Parent, or if none, (iv) Sibling. Subpart C plan plan Transferring plan [82 FR 60818, Dec. 22, 2017, as amended at 89 FR 48309, June 6, 2024] § 4050.303 Options and duties of plan administrator. (a) Options. (1) Will be a “transferring plan,” that is, will pay a benefit transfer amount to PBGC for each distributee who is missing upon close-out of the subpart C plan and will be bound by the provisions of this subpart C to the extent that they apply to transferring plans, or (2) Will be a “notifying plan,” that is, will notify PBGC of the disposition of the benefits of each distributee identified in the filing who is missing upon close-out of the plan and will, with respect to those distributees, be bound by the provisions of this subpart C to the extent that they apply to notifying plans. (b) Diligent search In general. (2) Notifying plans. (c) Filing with PBGC In general. (2) Notifying plans. (d) Benefit transfer amount. (1) De minimis. (2) Non-de minimis; single sum payment cannot be elected. (i) For a missing distributee not in pay status whose normal retirement date (or accrual cessation date if later) precedes the benefit determination date, the aggregate value of payments of the straight life annuity that would have been payable beginning on the normal retirement date (or accrual cessation date if later), accumulated at the missing participants interest rate from the date each payment would have been made to the benefit determination date, assuming that the distributee survived to the benefit determination date, as determined by the plan administrator; or (ii) For a missing distributee in pay status, the aggregate value of payments of the pay status annuity due but not made, accumulated at the missing participants interest rate from each payment due date to the benefit determination date, assuming that the distributee survived to the benefit determination date. (3) Non-de minimis; single sum payment can be elected. § 4050.304 Diligent search. (a) Search requirement. (1) For any distributee, regardless of the size of the distributee's benefit, the commercial locator service method described in paragraph (b) of this section; or (2) For a distributee whose normal retirement benefit is not more than $50 per month, the records search method described in paragraph (c) of this section. (b) Commercial locator service method In general. (2) Meaning of “commercial locator service.” (c) Records search method In general. (i) Searching the records of the plan for information to locate the distributee. (ii) Searching the records of the plan's contributing sponsor that is the most recent employer of the distributee for information to locate the distributee. (iii) Searching the records of each retirement or welfare plan of the plan's contributing sponsor in which the distributee was a participant for information to locate the distributee. (iv) Contacting each beneficiary of the distributee identified from the records referred to in paragraphs (c)(1)(i), (ii), and (iii) of this section for information to locate the distributee. (v) Using an internet search method for which no fee is charged, such as a search engine, a network database, a public record database (such as those for licenses, mortgages, and real estate taxes) or a “social media” website. (2) Limits on method. (i) Searching is not feasible to the extent that, as a practical matter, it is thwarted by legal or practical lack of access to records, and (ii) Searching is not affordable to the extent that the cost of searching (including the value of labor) is more than a reasonable fraction of the benefit of the distributee being searched for. In no event would searching need to be pursued beyond the point where the cost equals the value of the benefit. (d) Time frame. § 4050.305 Filing with PBGC. (a) What to file. (1) The benefit transfer amount for the missing distributee; (2) If the benefit transfer amount is paid more than 90 days after the benefit determination date, interest on the benefit transfer amount computed at the missing participants interest rate for the period beginning on the 90th day after the benefit determination date and ending on the date the benefit transfer amount is paid to PBGC; and (3) Any fee provided for in the missing participants forms and instructions. (b) When to file. (c) Place, method and date of filing; time periods. (2) For rules about permissible methods of filing with PBGC under this subpart, see subpart A of part 4000 of this chapter. (3) For rules about the date that a submission under this subpart was filed with PBGC, see subpart C of part 4000 of this chapter. (4) For rules about any time period for filing under this subpart, see subpart D of part 4000 of this chapter. (d) Supplemental information. (e) Reliance. § 4050.306 Missing participant benefits. (a) In general Notifying plan. (2) Transferring plan. (b) Benefits for missing distributees who are participants. (c) De minimis benefit. (d) Non-de minimis benefit of unmarried participant. (1) Annuity. (i) Straight life annuity. (ii) Other form of annuity. (2) Make-up amount. (3) Lump sum. (e) Non-de minimis benefit of married participant. (1) Annuity. (i) Joint and survivor annuity. (ii) Other form of annuity. (2) Make-up amount. (3) Lump sum. (f) Benefits with respect to deceased missing distributees who were participants. (g) De minimis benefit. (h) Non-de minimis benefit; unmarried participant. (1) Death before normal retirement date. (2) Death after normal retirement date. (i) Non-de minimis benefit; married participant with living spouse. (1) Annuity. (i) The date when the participant would have reached age 55, if the participant died before that date, or (ii) The participant's date of death, if the participant died between age 55 and the normal retirement date (or accrual cessation date if later), or (iii) The normal retirement date (or accrual cessation date if later), if the participant died after that date. (2) Make-up amounts. (i) Payments from participant's death or 55th birthday to commencement of survivor annuity. (ii) Payments from normal retirement date to participant's death. (3) Small benefit. (j) Non-de minimis benefit; married participant with deceased spouse. (1) Payments from participant's death or 55th birthday to spouse's death. (2) Payments from normal retirement date to participant's death. (k) Benefits under contributory plans. (l) Date for determining marital status. (1) The date the participant receives or begins to receive a benefit, or (2) The date the participant dies. § 4050.307 PBGC discretion. PBGC may in appropriate circumstances extend deadlines, excuse noncompliance, and grant waivers with regard to any provision of this subpart to promote the purposes of the missing participants program and title IV of ERISA. Like circumstances will be treated in like manner under this section. Subpart D—Multiemployer Plans Covered by Title IV § 4050.401 Purpose and scope. (a) In general. (1) Is described in section 4021(a) of ERISA and not in any paragraph of section 4021(b) of ERISA, and (2) Completes the process of closing out under subpart D of PBGC's regulation on Termination of Multiemployer Plans (29 CFR part 4041A). (b) Plans that terminate but do not close out. (c) Individual account plans. § 4050.402 Definitions. The following terms are defined in § 4001.2 of this chapter: Annuity, Code, ERISA, insurer, PBGC, person, and plan sponsor. In addition, for purposes of this subpart: Accrual cessation date Accumulated single sum Benefit determination date Benefit transfer amount Close-out close out De minimis Distributee Missing, (1) The plan sponsor does not know with reasonable certainty the location of the distributee. (2) Under the terms of the plan, the distributee's benefit is to be paid in a lump sum without the distributee's consent, and the distributee has not responded to a notice about the distribution of the lump sum. (3) Under the terms of the plan and any election made by the distributee, the distributee's benefit is to be paid in a lump sum, but the distributee does not accept the lump sum. For this purpose, a lump sum paid by check is not accepted if the check remains uncashed after— (i) A “cash-by” date prescribed (on the check or in an accompanying notice) that is at least 45 days after the issuance of the check, or (ii) If no such “cash-by” date is so prescribed, the check's stale date. Missing participants forms and instructions Missing participants interest rate Normal retirement date Pay-status pay status (1) With respect to a benefit, that payment of the benefit has actually started before the benefit determination date; or (2) With respect to a distributee, that payment of the distributee's benefit has actually started before the benefit determination date. PBGC missing participants assumptions (1) The present value is determined as of the benefit determination date instead of the plan termination date. (2) The mortality assumption is the mortality table in § 4044.53(h) of this chapter. (3) No adjustment is made for loading expenses under § 4044.52(d) of this chapter. (4) The interest assumption is the assumption for valuing benefits under § 4044.54 of this chapter applicable to valuations occurring on December 31 of the calendar year preceding the calendar year in which the benefit determination date occurs. However, for benefit determination dates July 31 through December 31 of 2024, the interest assumption is the assumption for valuing benefits under § 4044.54 of this chapter applicable to valuations occurring on July 31, 2024. (5) The assumed payment form of a benefit not in pay status is a straight life annuity. (6) Pre-retirement death benefits are disregarded. (7) Notwithstanding the expected retirement age (XRA) assumptions in §§ 4044.55 through 4044.58 of this chapter— (i) In the case of a participant who is not in pay status and whose normal retirement date is on or after the benefit determination date, benefits are assumed to commence at the XRA, determined using the high retirement rate category under table II-C (Expected Retirement Ages for Individuals in the High Category) in § 4044.58 of this chapter; (ii) In the case of a participant who is not in pay status and whose normal retirement date is before the benefit determination date, benefits are assumed to commence on the participant's normal retirement date (or accrual cessation date if later); (iii) In the case of a participant who is in pay status, benefits are assumed to commence on the date on which benefits actually commenced; and (iv) In the case of a beneficiary, benefits are assumed to commence on the benefit determination date or, if later, the earliest date the beneficiary can begin to receive benefits. Plan lump sum assumptions (1) If the plan specifies actuarial assumptions and methods to be used to calculate a lump sum distribution, such actuarial assumptions and methods, or (2) Otherwise, the actuarial assumptions specified under section 205(g)(3) of ERISA and section 417(e)(3) of the Code, determined as of the benefit determination date, including use of the missing participants interest rate to calculate the present value as of the benefit determination date of a payment or payments missed in the past. QDRO Qualified survivor (1) A person who survives the participant or beneficiary and is entitled under applicable provisions of a QDRO to receive the benefit; (2) A person that is identified by the plan in a submission to PBGC by the plan as being entitled under applicable plan provisions (including elections, designations, and waivers consistent with such provisions) to receive the benefit; or (3) If no such person is so entitled, a survivor of the participant or beneficiary who is the participant's or beneficiary's living— (i) Spouse, or if none, (ii) Child, or if none, (iii) Parent, or if none, (iv) Sibling. Subpart D plan plan [82 FR 60818, Dec. 22, 2017, as amended at 89 FR 48309, June 6, 2024] § 4050.403 Duties of plan sponsor. (a) Providing for benefits. (1) By purchase of an annuity contract from an insurer; or (2) By— (i) Determining the distributee's benefit transfer amount under paragraph (e) of this section, and (ii) Transferring to PBGC as described in this subpart D an amount equal to the distributee's benefit transfer amount. (b) Diligent search. (c) Filing with PBGC. (d) Benefit transfer amount. (1) De minimis. (2) Non-de minimis; single sum payment cannot be elected. (i) For a missing distributee not in pay status whose normal retirement date (or accrual cessation date if later) precedes the benefit determination date, the aggregate value of payments of the straight life annuity that would have been payable beginning on the normal retirement date (or accrual cessation date if later), accumulated at the missing participants interest rate from the date each payment would have been made to the benefit determination date, assuming that the distributee survived to the benefit determination date, as determined by the plan sponsor; or (ii) For a missing distributee in pay status, the aggregate value of payments of the pay status annuity due but not made, accumulated at the missing participants interest rate from each payment due date to the benefit determination date, assuming that the distributee survived to the benefit determination date. (3) Non-de minimis; single sum payment can be elected. § 4050.404 Diligent search. (a) Search requirement. (1) For any distributee, regardless of the size of the distributee's benefit, the commercial locator service method described in paragraph (b) of this section; or (2) For a distributee whose normal retirement benefit is not more than $50 per month, the records search method described in paragraph (c) of this section. (b) Commercial locator service method In general. (2) Meaning of “commercial locator service.” (c) Records search method In general. (i) Searching the records of the plan for information to locate the distributee. (ii) Searching the records of the contributing sponsor that is the most recent employer of the distributee for information to locate the distributee. (iii) Searching the records of each retirement or welfare plan of the contributing sponsor in which the distributee was a participant for information to locate the distributee. (iv) Contacting each beneficiary of the distributee identified from the records referred to in paragraphs (c)(1)(i), (ii), and (iii) of this section for information to locate the distributee. (v) Using an internet search method for which no fee is charged, such as a search engine, a network database, a public record database (such as those for licenses, mortgages, and real estate taxes) or a “social media” website. (2) Limits on method. (i) Searching is not feasible to the extent that, as a practical matter, it is thwarted by legal or practical lack of access to records, and (ii) Searching is not affordable to the extent that the cost of searching (including the value of labor) is more than a reasonable fraction of the benefit of the distributee being searched for. In no event would searching need to be pursued beyond the point where the cost equals the value of the benefit. (d) Time frame. § 4050.405 Filing with PBGC. (a) What to file. (1) The benefit transfer amount for the missing distributee; (2) If the benefit transfer amount is paid more than 90 days after the benefit determination date, interest on the benefit transfer amount computed at the missing participants interest rate for the period beginning on the 90th day after the benefit determination date and ending on the date the benefit transfer amount is paid to PBGC; and (3) Any fee provided for in the missing participants forms and instructions. (b) When to file. (c) Place, method and date of filing; time periods. (2) For rules about permissible methods of filing with PBGC under this subpart, see subpart A of part 4000 of this chapter. (3) For rules about the date that a submission under this subpart was filed with PBGC, see subpart C of part 4000 of this chapter. (4) For rules about any time period for filing under this subpart, see subpart D of part 4000 of this chapter. (d) Supplemental information. (e) Reliance. § 4050.406 Missing participant benefits. (a) In general Benefit transfer amount not paid. (2) Benefit transfer amount paid. (b) Benefits for missing distributees who are participants. (c) De minimis benefit. (d) Non-de minimis benefit of unmarried participant. (1) Annuity. (i) Straight life annuity. (ii) Other form of annuity. (2) Make-up amount. (3) Lump sum. (e) Non-de minimis benefit of married participant. (1) Annuity. (i) Joint and survivor annuity. (ii) Other form of annuity. (2) Make-up amount. (3) Lump sum. (f) Benefits with respect to deceased missing distributees who were participants. (g) De minimis benefit. (h) Non-de minimis benefit; unmarried participant. (1) Death before normal retirement date. (2) Death after normal retirement date. (i) Non-de minimis benefit; married participant with living spouse. (1) Annuity. (i) The date when the participant would have reached age 55, if the participant died before that date, or (ii) The participant's date of death, if the participant died between age 55 and the normal retirement date (or accrual cessation date if later), or (iii) The normal retirement date (or accrual cessation date if later), if the participant died after that date. (2) Make-up amounts. (i) Payments from participant's death or 55th birthday to commencement of survivor annuity. (ii) Payments from normal retirement date to participant's death. (3) Small benefit. (j) Non-de minimis benefit; married participant with deceased spouse. (1) Payments from participant's death or 55th birthday to spouse's death. (2) Payments from normal retirement date to participant's death. (k) Benefits under contributory plans. (l) Date for determining marital status. (1) The date the participant receives or begins to receive a benefit, or (2) The date the participant dies. § 4050.407 PBGC discretion. PBGC may in appropriate circumstances extend deadlines, excuse noncompliance, and grant waivers with regard to any provision of this subpart to promote the purposes of the missing participants program and title IV of ERISA. Like circumstances will be treated in like manner under this section.