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HRD-81-117 1 (1981-09-30)

handle is hein.gao/gaobabcmx0001 and id is 1 raw text is: 





BY THE COMPTROLLER GENERAL



Repot To The Congress

OF THE UNITED STATES





Tax Revenues Lost And Beneficiaries

Inadequately Protected When Private

Pension Plans Terminate



Many terminating private pension plans are
not voluntarily requesting the Internal Rev-
enue Service (IRS) reviews for protecting
participants' rights to benefits, and termina-
tion actions are not being reported to the
Pension Benefit Guaranty Corporation--the
agency responsible for insuring payments.
Also, I RS processes for collecting taxes due
on pension asset disbursements are incom-
plete and millions in tax revenues have been
lost. The Corporation and I RS 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 termi-
nating pension plans to obtain an I RS review
of participant protection requirements before
plan dissolution. IRS should improve reviews
of pension plan terminations and disburse-
ments, and the Corporation, in cooperation
with IRS, should establish procedures for
timely identification and followup actions on
unreported plan terminations.









                                                                     HR D-81-117
                                                              SEPTEMBER 30,1981


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