A new Department of Labor (DOL) interim final rule (IFR) expands the abandoned plan program to cover individual-account defined contribution (DC) plans whose sponsors are in liquidation under Chapter 7 of the US Bankruptcy Code. DOL believes that the program’s streamlined procedures will reduce administrative burdens and costs for bankruptcy trustees charged with terminating DC plans. The IFR took effect July 16. This article focuses on aspects of the IFR relevant to plan sponsors.
Expanded scope covers bankruptcy trustees
Initially established in 2006, the abandoned plan program provides a regulatory framework for winding up the affairs of abandoned DC plans.