Tax Revenues Lost and Beneficiaries Inadequately Protected when Private Pension Plans Terminate.

Abstract

Many terminating private pension plans are not voluntarily requesting the Internal Revenue Service (IRS) reviews for protecting participants' rights to benefits, and termination actions are not being reported to the Pension Benefit Guaranty Corporation--the agency responsible for insuring payments. Also, IRS processes for collecting taxed due on pension asset disbursements are incomplete and millions in tax revenues have been lost. The Corporation and IRS have initiated actions to correct some of these problems, but more needs to be done. The Congress should amend the Internal Revenue Code to require sponsors of terminating pension plans to obtain an IRS review of participant protection requirements before plan dissolution. IRS should improve reviews of pension plan terminations and disbursements, and the Corporation, in cooperation with IRS, should establish procedures for timely identification and followup actions on unreported plan terminations. (Author)

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Sep 30, 1981
Accession Number
ADA108431

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Biomedical
  • Human Systems

DTIC Thesaurus Topics

  • Commerce
  • Computer Programs
  • Computers
  • Congress
  • Corporations
  • Employment
  • Executives
  • Governments
  • Handbooks
  • Identification
  • Law
  • Money
  • National Governments
  • New York
  • Quality Control
  • Training
  • United States

Fields of Study

  • Business

Readers

  • Government Contracting/Procurement.