§ 1350 — Missing Participants

(1) A plan administrator satisfies section 1341(b)(3)(A) of this title in the case of a missing participant only if the plan administrator— (A) transfers the participant’s designated benefit to the corporation or purchases an irrevocable commitment from an insurer in accordance with clause (i) of section 1341(b)(3)(A) of this title, and (B) provides the corporation such information and certifications with respect to such designated benefits or irrevocable commitments as the corporation shall specify. (2) A transfer to the corporation under this section shall be treated as a transfer of assets from a terminated plan to the corporation as trustee, and shall be held with assets of terminated plans for which the corporation is trustee under section 1342 of this title, subject to the rules set forth in that section. (3) After a missing participant whose designated benefit was transferred to the corporation is located— (A) in any case in which the plan could have distributed the benefit of the missing participant in a single sum without participant or spousal consent under section 1055(g) of this title, the corporation shall pay the participant or beneficiary a single sum benefit equal to the designated benefit paid the corporation plus interest as specified by the corporation, and (B) in any other case, the corporation shall pay a benefit based on the designated benefit and the assumptions prescribed by the corporation at the time that the corporation received the designated benefit. (b) For purposes of this section— (1) The term “missing participant” means a participant or beneficiary under a terminating plan whom the plan administrator cannot locate after a diligent search. (2) The term “designated benefit” means the single sum benefit the participant would receive— (A) under the plan’s assumptions, in the case of a distribution that can be made without participant or spousal consent under section 1055(g) of this title; (B) under the assumptions of the corporation in effect on the date that the designated benefit is transferred to the corporation, in the case of a plan that does not pay any single sums other than those described in subparagraph (A); or (C) under the assumptions of the corporation or of the plan, whichever provides the higher single sum, in the case of a plan that pays a single sum other than those described in subparagraph (A). (c) The corporation shall prescribe rules similar to the rules in subsection (a) for multiemployer plans covered by this subchapter that terminate under section 1341a of this title. (1) The plan administrator of a plan described in paragraph (4) may elect to transfer a missing participant’s benefits to the corporation upon termination of the plan. (2) To the extent provided in regulations, the plan administrator of a plan described in paragraph (4) shall, upon termination of the plan, provide the corporation information with respect to benefits of a missing participant if the plan transfers such benefits— (A) to the corporation, or (B) to an entity other than the corporation or a plan described in paragraph (4)(B)(ii). (3) If benefits of a missing participant were transferred to the corporation under paragraph (1), the corporation shall, upon location of the participant or beneficiary, pay to the participant or beneficiary the amount transferred (or the appropriate survivor benefit) either— (A) in a single sum (plus interest), or (B) in such other form as is specified in regulations of the corporation. (4) A plan is described in this paragraph if— (A) the plan is a pension plan (within the meaning of section 1002(2) of this title)— (i) to which the provisions of this section do not apply (without regard to this subsection), (ii) which is not a plan described in paragraph (2), (3), (4), (6), (7), (8), (9), (10), or (11) of section 1321(b) of this title, and (iii) was a plan described in section 401(a) of title 26 which includes a trust exempt from tax under section 501(a) of such title, and (B) at the time the assets are to be distributed upon termination, the plan— (i) has missing participants, and (ii) has not provided for the transfer of assets to pay the benefits of all missing participants to another pension plan (within the meaning of section 1002(2) of this title). (5) Subsections (a)(1) and (a)(3) shall not apply to a plan described in paragraph (4). (e) The corporation shall prescribe such regulations as are necessary to carry out the purposes of this section, including rules relating to what will be considered a diligent search, the amount payable to the corporation, and the amount to be paid by the corporation.