(ii) which read as follows: in accordance with the provisions of the plan and any applicable regulations of the corporation, otherwise fully provide the benefit liabilities under the plan and all other benefits (if any) under the plan to which assets are required to be allocated under section 1344 of this title., Subsec. citations and headings Step 2 of 8: Establish an effective date of termination. Single-employer plans can terminate in other trails as well. 62 FR 60428, Nov. 7, 1997, unless otherwise noted. Any such hearing shall be exempt from the requirements of. Pub. (c)(2)(B)(ii)(IV). (iii) Benefit accruals ceased, in accordance with section 204(h) of ERISA, as of a specified date before the notice of intent to terminate was issued; (5) Annuity information. (1) At least 60 days and (except with PBGC approval) no more than 90 days before the proposed termination date, the plan administrator must issue a written notice of intent to terminate to each person who is an affected party as of the proposed termination date. (1) The amount and form of the participant's or beneficiary's plan benefits payable as of the proposed termination date; (2) The amount and form of plan benefits, if any, payable to a beneficiary upon the participant's death and the name of the beneficiary; and. (c) Spin-off/termination transactions. Regulation Y (c)(2)(A)(ii). (c)(3)(A). 1 Here are the key areas in which plan sponsors need to be prepared. (b)(2)(A)(iii). (2) Early issuance of NOIT. A statement as to how an affected party entitled to receive the latest updated summary plan description under section 104(b) of ERISA can obtain it. The eCFR is displayed with paragraphs split and indented to follow the age of the participant or beneficiary, the assumptions, including the interest rate, and. L. 100203, 9314(a)(1)(B), inserted at end Clause (ii) and clause (iv)(I) shall not apply to a plan described in section 412(i) of title 26.. For purposes of section 4041 of such Act (as amended by this title), the proposed date of termination specified in the notice of intent to terminate referred to in subparagraph (B) shall be considered the proposed termination date. Subsec. L. 101239 effective as if included in the provision of the Single-Employer Pension Plan Amendments Act of 1986, Pub. ERISA Section 4044 Retirement Assumptions; . You can learn more about the process Subsec. (III). L. 100203, 9312(c)(2), struck out former subcl. Forms of Termination: PBGC online participants' benefits in underfunded single-employer pension plans if one employer does out of business-related and unable cash pensions. Subsec. (c)(3)(D)(ii)(IV). Pub. (2) Spin-off/termination transactions. The plan administrator must include in each notice of plan benefits. Washington, DC 20024-2101, Log In to MyPBA (For Workers & Retirees)Log In to My PAA (For Practitioners)Multiemployer Insurance Program FactsAnnuity or Lump Sum, Annual ReportsFederal Register Notices Open for CommentLaws and RegulationsPBGC Data SetsReducing Regulatory Burden, For Workers & Retirees1-800-400-7242 Generally, you should take specific actions when you terminate a plan, including providing required notices to plan participants, amending the plan document, distributing assets and, if you wish, filing a Form 5310 with the IRS. Pub. Pub. Subsec. If a decision is made to again proceed with the termination, the process must begin with a new date of plan termination and Notice of Intent to Terminate. (3) The amount and date of any increase or decrease in the benefit scheduled to occur (or that has already occurred) after the proposed termination date and an explanation of the increase or decrease, including, where applicable, a reference to the pertinent plan provision. Notice of Intent to Terminate. (b)(3)(A)(i). L. 96364, 403(d)(2), inserted single-employer after termination of a. Pub. or existing codification. A statement as to how an affected party entitled to receive the latest updated summary plan description under section 104(b) of ERISA can obtain it. Subsec. L. 109280, 409(a), added par. the information provided to the corporation under clause (ii) is accurate and complete. Chapter 23: Separations. A statement that each affected party entitled to plan benefits will receive a written notification regarding his or her plan benefits; (7) Summary plan description. L. 100203, 93029346, to which such amendment relates, see section 7882 of Pub. (eg: Pub. The notice tells you why we are taking this action. (2) The plan administrator must issue the notice of intent to terminate to all affected parties other than the PBGC at or before the time he or she files the notice with the PBGC. Pub. A statement that after plan assets have been distributed in full satisfaction of all plan benefits under the plan with respect to a participant or a beneficiary of a deceased participant, either by the purchase of irrevocable commitments (annuity contracts) or by an alternative form of distribution provided for under the plan, the PBGC no longer guarantees that participant's or beneficiary's plan benefits. switch to eCFR drafting site. L. 99272, title XI, 11008(d), Apr. Pub. Title 29 was last amended 7/01/2023. Subsec. Subsec. Pub. 2. 1/1.1 Amendment by section 9313(a)(1)(2)(E), (b)(1)(5) of Pub. (c)(3)(B)(ii). In any case in which the corporation determines that it is unable to determine that the plan is sufficient for guaranteed benefits on the basis of the information made available to it, the corporation shall commence proceedings in accordance with section 1342 of this title. Standard termination A pension plan can file a standard termination if it can pay all of the benefits owed. 247, provided that: Pub. Subsec. Subsec. The corporation shall not proceed with a termination of a plan under this section if the termination would violate the terms and conditions of an existing collective bargaining agreement. (5) The information in paragraphs (c) through (e) of this section, as applicable. Pub. In the case of a beneficiary of a deceased participant or an alternate payee, the plan administrator must issue a notice of intent to terminate promptly to any person that becomes an affected party after the proposed termination date and on or before the distribution date. The plan administrator shall not provide information under clause (i) in a form that includes any information that may directly or indirectly be associated with, or otherwise identify, an individual participant or beneficiary. If you have comments or suggestions on how to improve the www.ecfr.gov website or have questions about using www.ecfr.gov, please choose the 'Website Feedback' button below. 948, provided that: Amendment by section 776(b)(3) of Pub. 1341] on or after January 1, 1986, but before the date of . Selection of an Annuity Provider 4. As part of a bankruptcy. Section 4041.23 - Notice of intent to terminate. (f) generally, substituting provisions relating to limitation on the conversion of a defined benefit plan to a defined contribution plan, for provisions relating to amendment of a plan with respect to which basic benefits are guaranteed. The PBGC's standard termination forms and instructions package includes a model notice of intent to terminate. (b) relating to notice of sufficiency of plan assets. This web site is designed for the current versions of the plan could not otherwise, pursuant to the preceding provisions of this paragraph, terminate in a termination treated as a standard termination under section 4041(b) of the. Within 30 days after the final distribution of assets is completed pursuant to the standard termination of the plan under this subsection, the plan administrator shall send a notice to the corporation certifying that the assets of the plan have been distributed in accordance with the provisions of subparagraph (A) so as to pay all benefit liabilities under the plan. To Terminate or Not to Terminate? (c)(2)(A)(iv). Background and more details are available in the Electronic Code of Federal Regulations (e-CFR), CHAPTER XLPENSION BENEFIT GUARANTY CORPORATION, PART 4041TERMINATION OF SINGLE-EMPLOYER PLANS. Pub. (c)(2)(A)(ii). the corporation determines that the requirements of subparagraphs (B) and (D) of paragraph (2) are met. Subsec. Clause (i) shall not apply with respect to a termination with respect to which the final distribution of assets has commenced before the date of the enactment of this Act unless, within 90 days after the date of the enactment of this Act, the plan has been restored in accordance with procedures issued by the Corporation pursuant to subsection (c). Use the navigation links in the gray bar above to view the table of contents that this content belongs to. C. Notice of Intent to Terminate (NOIT) . such information as the corporation may prescribe by regulation as necessary to make determinations under subparagraph (B) and paragraph (3); the amount (as of the proposed termination date and, if applicable, the proposed distribution date) of the current value of the assets of the plan, the actuarial present value (as of such dates) of the, the actuarial present value (as of such dates) of benefits under the plan guaranteed under. (d). will bring you directly to the content. The corporation and the plan administrator may agree to extend the 60-day period referred to in clause (i) by a written agreement signed by the corporation and the plan administrator before the expiration of the 60-day period. Por favor vaya a la pgina principal del sitio de espaol de PBGC para ver informacin disponible en espaol. Your account balance in the Plan on [date] is . the provision of new information to the corporation relating to a previous request. In the case of a transaction in which a single defined benefit plan is split into two or more plans and there is a reversion of residual assets to an employer upon the termination of one or more but fewer than all of the resulting plans (a spin-off/termination transaction), the plan administrator must, within the time period specified in paragraph (a) of this section, provide a notice describing the transaction to all participants, beneficiaries of deceased participants, and alternate payees in the original plan who are, as of the proposed termination date, covered by an ongoing plan. (c). Pub. (1) At least 60 days and (except with PBGC approval) no more than 90 days before the proposed termination date, the plan administrator must issue a written notice of intent to terminate to each person who is an affected party as of the proposed termination date. (a). L. 100203, 9313(a)(2)(D), substituted benefit liabilities for benefit commitments in introductory provision. refrains from distributing assets or taking any other actions to carry out the proposed termination under this subsection. Please go to PBGC.gov'sSpanish home page for more information available in Spanish. Pub. (d)(1). (d)(1). In late January 2022, AstraZeneca US informed 7,000 workers and retirees at its U.S-based research and manufacturing locations a notice of intent to terminate the plan March 31, 2022. (i) An explanation of when a lump sum may be paid without the consent of the participant or the participant's spouse; (ii) A description of the mortality table used to convert to the lump sum benefit (e.g., the mortality table published by the IRS in Revenue Ruling 956, 19951 C.B. In a standard termination, PBGC reviews the termination to make sure that the plan administrator follows all required steps to ensure proper notification to workers and retirees and proper arrangements for payment Pub. (D). In the case of a plan termination described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(ii), if the requirements of section 4041(c)(2)(B) of such Act (as amended by this title) are met, the termination shall be treated as a distress termination under section 4041(c) of such Act (as amended by this title). Displaying title 29, up to date as of 7/06/2023. The notice of intent to terminate must include ( 1) Identifying information. An employer can terminate a plan for various reasons: As a result of a voluntary decision to terminate the plan. L. 109280, 506(a)(2), substituted subparagraphs (B) and (D) for subparagraph (B). 7, 1986, 100 Stat. A statement (as applicable) that. Notice Single-Employer Plan Termination (Form 500) PDF. (b)(2)(A) and (c)(2)(A), was amended generally by Pub. If you work for a Federal agency, use this drafting At least 60 days and no more than 90 days before the proposed termination date, the plan administrator must issue a notice of intent to terminate to each person (other than the PBGC) that is an affected party as of the proposed termination date. Such an amendment may take effect only after the plan satisfies the requirements for standard termination under subsection (b) or distress termination under subsection (c). (2) The plan administrator must issue the notice of intent to terminate to all affected parties other than the . Step 4 of 8: Participant Notification (applies only to plans with common law employees) Amendment by section 7893(c), (d) of Pub. Locked padlock (I), inserted and, if applicable, the proposed distribution date after termination date, and in subcls. contact the publishing agency. Nothing in the preceding sentence shall be construed as limiting the authority of the corporation to institute proceedings to involuntarily terminate a plan under section 1342 of this title. 80) and a reference to the pertinent plan provisions; (iii) A description of the interest rate to be used to convert to the lump sum benefit (e.g., the 30-year Treasury rate for the third month before the month in which the lump sum is distributed), a reference to the pertinent plan provision, and (if known) the applicable interest rate; (iv) An explanation of how interest rates are used to calculate lump sums; (v) A statement that the use of a higher interest rate results in a smaller lump sum amount; and. Pub. 2008Subsec. Except as otherwise provided in this title, the amendments made by this title [see Short Title of 1986 Amendment note set out under, Deemed compliance with notice requirements., The requirements of subsections (a)(2), (b)(1)(A), and (c)(1)(A) of section 4041 of the, This paragraph shall apply with respect to any termination described in paragraph (1) if, within 90 days after the date of enactment of this Act [, Terminations proceeding as standard termination., Terminations for which sufficiency notices have not been issued., Special notice regarding sufficiency for terminations for which notices of sufficiency have not been issued as of date of enactment., Terminations for which notices of sufficiency have been issued., Terminations proceeding as distress termination., Termination of proceedings by plan administrator., Terminations with respect to which final distribution of assets has commenced., Authority of corporation to extend 90-day periods to permit standard termination., The Corporation may, on a case-by-case basis in accordance with subsection (c), provide for extensions of the applicable 90-day period referred to in clause (i) or (ii) of subparagraph (B) if it is demonstrated to the satisfaction of the Corporation that, Authority To Prescribe Temporary Procedures., Special Temporary Rule for Termination of Single-Employer Plan, Requirements to be met before final distribution of assets., Exception in cases of substantial business hardship., Employee Retirement Income Security Act of 1974, Single-Employer Pension Plan Amendments Act of 1986.
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