The PBGC has added their “two cents” to the DOL’s guidance (highlighted in a previous post) in this Notice to Defined Benefit Plans Concerning Funds Invested With Bernard L. Madoff Investment Securities LLC:
If the losses of a single-employer plan are sufficient to render the plan unable to pay benefits when due, the plan administrator or sponsor is required by section 4043 of ERISA to notify PBGC of this event within 30 days of knowing or having reason to know that this reportable event has occurred. The plan administrator must notify PBGC of a reportable event by filing PBGC Form 10. . . ”
The PBGC also urges plan sponsors to “consult a qualified advisor concerning recovery of funds invested directly or indirectly with Madoff Securities.”
Plan Sponsor.com has a detailed article on related developments here which includes a link to the Bankruptcy Trustee’s list of Madoff victims. According to the list, there were many profit sharing and pension plans impacted (which Plan Sponsor refers to as “Madoff-maimed plans”).