Before 1999, PBgC did not make lump-sum payments to insolvent multiemployer plans or those expected to become insolvent in the future. it now does so in select cases to close out a plan or to facilitate a merger with another, financially stronger multiemployer plan. in a closeout, the plan either purchases annuities from the private insurance market to satisfy its obligations or pays participants lump sums in lieu of annuities. PBgC generally makes a lump-sum payment to allow a closeout when administrative expenses would otherwise absorb an unacceptably high proportion of future financial assistance. PBgC provides.
