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Pt. 4050 29 CFR Ch. XL (7–1–17 Edition) 

(c) Notification to plan administrator. 

Whenever the PBGC issues or has 

issued a plan restoration order, it shall 

send a written notice to the plan administrator of the restored plan advising the plan administrator of the 

amount owed the PBGC pursuant to 

paragraph (a) of this section. The notice shall also include the terms and 

conditions for payment of this debt, as 

established under paragraph (b) of this 

section. 

PART 4050—MISSING 

PARTICIPANTS 

Sec. 

4050.1 Purpose and scope. 

4050.2 Definitions. 

4050.3 Method of distribution for missing 

participants. 

4050.4 Diligent search. 

4050.5 Designated benefit. 

4050.6 Payment and required documentation. 

4050.7 Benefits of missing participants—in 

general. 

4050.8 Automatic lump sum. 

4050.9 Annuity or elective lump sum—living 

missing participant. 

4050.10 Annuity or elective lump sum—beneficiary of deceased missing participant. 

4050.11 Limitations. 

4050.12 Special rules. 

APPENDIX A TO PART 4050—EXAMPLES OF DESIGNATED BENEFIT DETERMINATIONS FOR

MISSING PARTICIPANTS UNDER §4050.5 IN

PLANS WITH DEEMED DISTRIBUTION DATES

ON AND AFTER AUGUST 17, 1998 

APPENDIX B TO PART 4050—EXAMPLES OF BENEFIT PAYMENTS FOR MISSING PARTICIPANTS

UNDER §§4050.8 THROUGH 4050.10 

AUTHORITY: 29 U.S.C. 1302(b)(3), 1350. 

SOURCE: 62 FR 60440, Nov. 7, 1997, unless 

otherwise noted. 

§ 4050.1 Purpose and scope. 

This part prescribes rules for distributing benefits under a terminating single-employer plan for any individual 

whom the plan administrator has not 

located when distributing benefits 

under §4041.28 of this chapter. This part 

applies to a plan if the plan’s deemed 

distribution date (or the date of a payment made in accordance with §4050.12) 

is in a plan year beginning on or after 

January 1, 1996. 

§ 4050.2 Definitions. 

The following terms are defined in 

§4001.2 of this chapter: annuity, Code, 

ERISA, insurer, irrevocable commitment, mandatory employee contributions, normal retirement age, PBGC, 

person, plan, plan administrator, plan 

year and title IV benefit. 

In addition, for purposes of this part: 

Deemed distribution date means— 

(1) The last day of the period in 

which distribution may be made under 

part 4041 of this chapter; or 

(2) If the plan administrator selects 

an earlier date that is no earlier than 

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, such earlier date. 

Designated benefit means the amount 

payable to the PBGC for a missing participant pursuant to §4050.5. 

Designated benefit interest rate means 

the rate of interest applicable to underpayments of guaranteed benefits by the 

PBGC under §4022.81(c) of this chapter. 

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 subparts A and B of part 4022 of 

this chapter (treating the deemed distribution date as the termination date 

for this purpose). 

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. 

Missing participant annuity assumptions means the interest rate assumptions and actuarial methods for valuing benefits under §4044.52 of this 

chapter, applied— 

(1) As if the deemed distribution date 

were the termination date; 

(2) Using mortality rates that are a 

fixed blend of 50 percent of the healthy 

male mortality rates in §4044.53(c)(1) of 

this chapter and 50 percent of the 


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Pension Benefit Guaranty Corporation § 4050.5 

healthy female mortality rates in 

§4044.53(c)(2) of this chapter; 

(3) Without using the expected retirement age assumptions in §§4044.55 

through 4044.57 of this chapter; 

(4) Without making the adjustment 

for expenses provided for in §4044.52(d) 

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 $5,000. 

Missing participant forms and instructions means PBGC Forms 501 and 602, 

Schedule MP thereto, and related 

forms, and their instructions. 

Missing participant lump sum assumptions means the interest rate and mortality assumptions and actuarial methods for determining the lump sum 

value of a benefit under §4022.7(d) of 

this chapter applied— 

(1) As if the deemed distribution date 

were the termination date; and 

(2) Without using the expected retirement age assumptions in §§4044.55 

through 4044.57 of this chapter. 

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. 

Post-distribution certification means 

the post-distribution certification required by §4041.29 or §4041.50 of this 

chapter. 

Unloaded designated benefit means the 

designated benefit reduced by $300; except that the reduction does not apply 

in the case of a designated benefit determined using the missing participant 

annuity assumptions without adding 

the $300 load described in paragraph (5) 

of the definition of ‘‘missing participant annuity assumptions.’’ 

[62 FR 60440, Nov. 7, 1997, as amended at 63 

FR 29355, May 29, 1998; 63 FR 38306, July 16, 

1998; 65 FR 14753, Mar. 17, 2000; 71 FR 75117, 

Dec. 14, 2006] 

§ 4050.3 Method of distribution for 

missing participants. 

The plan administrator of a terminating plan must distribute benefits 

for each missing participant by— 

(a) Purchasing from an insurer an irrevocable commitment that satisfies 

the requirements of §4041.28(c) or 

§4041.50 of this chapter (whichever is 

applicable); or 

(b) Paying the PBGC a designated 

benefit in accordance with §§4050.4 

through 4050.6 (subject to the special 

rules in §4050.12). 

§ 4050.4 Diligent search. 

(a) Search required. A diligent search 

must be made for each missing participant before information about the 

missing participant or payment is submitted to the PBGC pursuant to 

§4050.6. 

(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; 

(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). 

§ 4050.5 Designated benefit. 

(a) Amount of designated benefit. The 

amount of the designated benefit is 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 is 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 


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§ 4050.6 29 CFR Ch. XL (7–1–17 Edition) 

pay status as of the deemed distribution date and whose benefit has a de 

minimis actuarial present value ($5,000 

or less) as of the deemed distribution 

date under the missing participant 

lump sum assumptions is 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 is 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 is 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 

must 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. 

(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 must 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 must 

be made in accordance with §4050.6 and 

will be deemed made on the deemed 

distribution date. 

[62 FR 60440, Nov. 7, 1997, as amended at 63 

FR 38306, July 16, 1998] 

§ 4050.6 Payment and required documentation. 

(a) Time of payment and filing. The 

plan administrator must 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. Except as otherwise provided in 


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Pension Benefit Guaranty Corporation § 4050.8 

the missing participant forms and instructions, the plan administrator 

must submit the designated benefits, 

information, and certifications with 

the post-distribution certification. 

(b) Late charges—(1) Interest on late 

payments. Except as provided in paragraph (b)(2) of this section, if the plan 

administrator does not pay a designated benefit by the time specified in 

paragraph (a) of this section, the plan 

administrator must 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 

§4007.7 of this chapter. Interest assessed under this paragraph will 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. 

(2) Assessment of interest and penalties. 

The PBGC will assess interest for late 

payment of a designated benefit or a 

penalty for late filing of information 

only to the extent paid or filed beyond 

the time provided in §4041.29(b). 

(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 must 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. 

(d) Filing with the PBGC—(1) Method 

and date of filing. The PBGC applies the 

rules in subpart A of part 4000 of this 

chapter to determine permissible 

methods of filing with the PBGC under 

this part. The PBGC applies the rules 

in subpart C of part 4000 of this chapter 

to determine the date that a submission under this part was filed with the 

PBGC. 

(2) Where to file. See §4000.4 of this 

chapter for information on where to 

file. 

(3) Computation of time. The PBGC applies the rules in subpart D of part 4000 

of this chapter to compute any time 

period for filing under this part. However, for purposes of determining the 

amount of an interest charge under 

§4050.6(b) or §4050.12(c)(2)(iii), the rule 

in §4000.43(a) of this chapter governing 

periods ending on weekends or Federal 

holidays does not apply. 

[62 FR 60440, Nov. 7, 1997, as amended at 68 

FR 61354, Oct. 28, 2003] 

§ 4050.7 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, the relevant policy number, 

and (to the extent known) the amount 

or value of the benefit. 

(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 §§4050.8 through 

4050.10 (subject to the limitations and 

special rules in §§4050.11 and 4050.12). 

(c) Examples. See appendix B to this 

part for examples illustrating the provisions of §§4050.8 through 4050.10. 

§ 4050.8 Automatic lump sum. 

This section applies to a missing participant whose designated benefit was 

determined under §4050.5(a)(1) (mandatory lump sum) or §4050.5(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 will 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. 


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§ 4050.9 29 CFR Ch. XL (7–1–17 Edition) 

(b) De minimis annuity alternative. If 

the guaranteed benefit form for a missing participant whose designated benefit was determined under §4050.5(a)(2) 

(de minimis lump sum) (or the guaranteed benefit form for a beneficiary of 

such a missing participant) would provide for the 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 may 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. 

§ 4050.9 Annuity or elective lump 

sum—living missing participant. 

This section applies to a missing participant whose designated benefit was 

determined under §4050.5(a)(3) (no lump 

sum) or §4050.5(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 may 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 §4050.5(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 ERISA). 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. 

§ 4050.10 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 §4050.5(a)(3) (no lump sum) 

or §4050.5(a)(4) (elective lump sum) and 

whose benefit is not payable under 

§4050.9. 


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Pension Benefit Guaranty Corporation § 4050.10 

(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 ERISA). 

(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 percent 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 percent survivor annuity beginning on the annuity 

starting date, under which reduced 

payments (at the 50 percent level) are 

made only after the death of the missing participant during the life of the 

spouse (and not after the death of the 

spouse during the missing participant’s 

life). 

(iii) Time of benefit. The PBGC will 

pay the survivor benefit beginning at 

the time elected by the surviving 

spouse (which may 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 §4050.5(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 after the missing participant’s death and before the 

date as of which the benefit is paid 

under paragraph (b)(4) of this section, 

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 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 before the missing participant’s death, plus interest 

on the missed payments (at the plan 

rate up to the deemed distribution date 


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§ 4050.11 29 CFR Ch. XL (7–1–17 Edition) 

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 will 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. 

§ 4050.11 Limitations. 

(a) Exclusive benefit. The benefits provided for under this part will 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 §§4050.8 through 

4050.10, determined as of the deemed 

distribution date, will 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 §§4050.8 through 

4050.10 (based on the designated benefit 

actually paid to the PBGC) is less than 

the minimum benefit in this paragraph 

(c), the PBGC will instead pay the minimum benefit. The minimum benefit is 

the lesser of: 

(1) The benefit as determined under 

the PBGC’s rules for paying guaranteed 

benefits in trusteed plans under subparts A and B of part 4022 of this chapter (treating the deemed distribution 

date as the termination date for this 

purpose); or 

(2) The benefit based on the designated benefit that should have been 

paid under §4050.5. 

(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. 

§ 4050.12 Special rules. 

(a) Missing participants located quickly. 

Notwithstanding the provisions of 

§§4050.8 through 4050.10, 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 must make distribution 

to the individual in such manner as the 

PBGC will direct. 

(b) Qualified domestic relations orders. 

Plan administrators must and the 

PBGC will take the provisions of qualified domestic relations orders (QDROs) 

under section 206(d)(3) of ERISA 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 

must use the assumptions for a missing 

participant who is a beneficiary under 

§4050.5(b). 

(c) Employee contributions—(1) Mandatory employee contributions. Notwithstanding the provisions of §4050.5, if a 

missing participant made mandatory 

contributions (within the meaning of 

section 4044(a)(2) of ERISA), the missing participant’s designated benefit 

may 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 ERISA 


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Pension Benefit Guaranty Corporation § 4050.12 

(whichever produces the greater 

amount). 

(2) Voluntary employee contributions. 

(i) Applicability. This paragraph (c)(2) 

applies to any employee contributions 

that were not mandatory (within the 

meaning of section 4044(a)(2) of ERISA) 

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, 

must pay the employee contributions 

described in paragraph (c)(2)(i) of this 

section (together with any earnings 

thereon) to the PBGC, and must file 

Schedule MP with the PBGC, by the 

time the designated benefit is due 

under §4050.6. Any such amount must 

be in addition to the designated benefit 

and must be separately identified. 

(iii) Payment by PBGC. In addition to 

any other amounts paid by the PBGC 

under §§4050.8 through 4050.10, the 

PBGC will pay any amount paid to it 

under paragraph (c)(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 §4050.8 (automatic 

lump sums), except that if the missing 

participant died before the deemed distribution date and there is no beneficiary, payment will be made to the 

missing participant’s estate. 

(d) Residual assets. The PBGC will determine, in a manner consistent with 

the purposes of this part and section 

4050 of ERISA, how the provisions of 

this part apply to any distribution (to 

participants and beneficiaries who cannot be located) of residual assets remaining after the satisfaction of plan 

benefits (as defined in §4041.2 of this 

chapter) in connection with the termination of a defined benefit plan. Unless 

the PBGC otherwise determines, the 

payment of residual assets for a participant or beneficiary who cannot be located, and the submission to the PBGC 

of the related Schedule MP (or amended Schedule MP), must be made no earlier than the date when the post-distribution certification is filed with the 

PBGC, and no later than the later of— 

(1) The 30th day after the date on 

which all residual assets have been distributed to all participants and beneficiaries other than those who cannot 

be located and for whom payment of residual assets is made to the PBGC, and 

(2) The date when the post-distribution certification is filed with the 

PBGC. 

(e) Sufficient distress terminations. In 

the case of a plan undergoing a distress 

termination (under section 4041(c) of 

ERISA) that is sufficient for at least 

all guaranteed benefits and that distributes its assets in the manner described in section 4041(b)(3) of ERISA, 

the benefit assumed to be payable by 

the plan for purposes of determining 

the amount of the designated benefit 

under §4050.5 is limited to the title IV 

benefit plus any benefit to which funds 

under section 4022(c) of ERISA have 

been allocated. 

(f) 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 will determine, in a manner consistent with the purposes of this part 

and section 4050 of ERISA, how the provisions of this part apply to such benefits. 

(g) Discretionary extensions. Any deadline under this part may be extended in 

accordance with the rules described in 

§4041.30 of this chapter. 

(h) Payments beginning after required 

beginning date. If the PBGC begins paying an annuity under §4050.9(a) or 

4050.10(a) to a participant or a participant’s spouse after the required beginning date under section 401(a)(9)(C) of 

the Code, the PBGC will 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 

the required beginning date. The PBGC 

will also pay lump sum equivalents 

under this paragraph (g) if the PBGC 

locates the estate of the participant or 

spouse after both are deceased. (Nothing in this paragraph (g) will increase 

the total value of the benefits payable 

with respect to a missing participant.) 


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Pt. 4050, App. A 29 CFR Ch. XL (7–1–17 Edition) 

APPENDIX A TO PART 4050—EXAMPLES

OF DESIGNATED BENEFIT DETERMINATIONS FOR MISSING PARTICIPANTS UNDER §4050.5 IN PLANS WITH

DEEMED DISTRIBUTION DATES ON

AND AFTER AUGUST 17, 1998 

The calculation of the designated benefit 

under §4050.5 is illustrated by the following 

examples. 

Example 1. Plan A provides that any participant whose benefit has a value at distribution of $3,500 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 $3,000 under plan A’s 

assumptions. Under §4050.5(a)(1), the plan administrator pays the PBGC $3,000 as P’s designated benefit. 

(2) As of the deemed distribution date, the 

value of Q’s benefit is $5,200 under plan A’s 

assumptions and $4,700 under the missing 

participant lump sum assumptions. Under 

§4050.5(a)(2), the plan administrator pays the 

PBGC $4,700 as Q’s designated benefit. 

(3) As of the deemed distribution date, the 

value of R’s benefit is $4,900 under plan A’s 

assumptions, $3,600 under the missing participant lump sum assumptions, and $4,950 

under the missing participant annuity assumptions. Under §4050.5(a)(3), the plan administrator pays the PBGC $4,950 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 $5,000 

using either plan assumptions or the missing 

participant lump sum assumptions. Accordingly, M’s designated benefit is to be determined under §4050.5(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 × (1– 

.16)) to $630 at age 60 (the earliest retirement 

age) ($1,000 × (1–5 × (.05)) × (1–.16)). 

(3) Under §4050.5(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 

paragraph (2) of the definition of ‘‘missing 

participant annuity assumptions’’ in §4050.2, 

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. (Because a new 

spouse may succeed to the survivor benefit, 

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 × $630 

× 5.4307). The designated benefit is equal to 

this value plus an expense adjustment of 

$300, or a total of $41,356. 

[62 FR 60440, Nov. 7, 1997, as amended at 63 

FR 38306, July 16, 1998] 

APPENDIX B TO PART 4050—EXAMPLES

OF BENEFIT PAYMENTS FOR MISSING

PARTICIPANTS UNDER §§4050.8 

THROUGH 4050.10 

The provisions of §§4050.8 through 4050.10 

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 

annual 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 × 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. 


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Pension Benefit Guaranty Corporation Pt. 4050, App. B 

(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 paragraph (2) of the definition of ‘‘missing participant annuity assumptions’’ in §4050.2, 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 

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 × 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. 


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