PBGC Coverage May No Longer Apply to Puerto Rico-Only Qualified Retirement Plans


Nancy Gerrie and Jeffrey Holdvogt wrote this bylined article explaining that Pension Benefit Guaranty Corporation (PBGC) coverage may no longer apply to defined benefit qualified retirement plans for only Puerto Rico employees. The new PBGC position “is that Puerto Rico-only qualified plans generally are not covered under Title IV of ERISA (although dual-qualified plans with Puerto Rico participants are covered),” the authors wrote, and they urged affected employers to assess whether they still have or want PBGC coverage, or prefer a refund of PBGC premiums.