(c) Spin-off/termination transactions. (III) as (IV) and substituted (or such other appropriate court) determines that, unless the plan is terminated, such person will be unable to pay all its debts pursuant to a plan of reorganization and will be unable to continue in business outside the chapter 11 reorganization process and approves the termination for (or other appropriate court in a case under such similar law of a State or political subdivision) approves the termination. 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. In any case in which the corporation determines that the plan is sufficient for guaranteed benefits, but further determines that it is unable to determine that the plan is sufficient for benefit liabilities on the basis of the information made available to it, the plan administrator shall proceed to distribute the plans assets in the manner described in subsection (b)(3), make certification to the corporation that the distribution has occurred, and take such actions as may be appropriate to carry out the termination of the plan. Subsec. The PBGC's standard termination forms and instructions package includes a model notice of intent to terminate. L. 103465, 778(a)(1)(B), (C), added subcl. Displaying title 29, up to date as of 7/06/2023. Subsec. (b)(2)(B). (III). Pub. (5). The eCFR is displayed with paragraphs split and indented to follow Pub. Guide to Managing Human Resources. L. 101239, 7881(g)(5), substituted proposed termination date for termination date. (c) Spin-off/termination transactions. 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. Step 2 of 8: Establish an effective date of termination. L. 99272, 11009(b), redesignated subsec. (1) In general. L. 100203, 9313(b)(3), see 1987 Amendment note below. is available with paragraph structure matching the official CFR L. 103465, 776(b)(3), inserted at end A transfer of assets to the corporation in accordance with section 1350 of this title on behalf of a missing participant shall satisfy this subparagraph with respect to such participant.. (b)(2)(A)(iii). Then your 30-day (or more) distribution election period. L. 101239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. 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)(i) and with respect to which a notice of sufficiency has not been issued by the Corporation before the date of the enactment of this Act, if, during the 90-day period commencing on the date of the notice required in subclause (II), all benefit commitments under the plan have been satisfied, the termination shall be treated as a standard termination under section 4041(b) of such Act (as amended by this title). AstraZeneca Pharmaceuticals LP, a U.S. subsidiary of the company manufacturing one of the world's most prominent Covid-19 vaccines, will terminate its $1.3 billion pension plan later this year, according to company officials.. (c)(3)(D). 2008Subsec. However, like you I also always have a plan amendment ceasing all contributions and accruals at the date of termination and therefore I think the 204(h) notice would be required without regard to whether the termination was contained in a corporate resolution/minutes as opposed to a plan amendment. (b)(2)(C)(i)(I). Pub. (b) relating to notice of sufficiency of plan assets. L. 100203, 9312(c)(1), struck out former subcl. the age of the participant or beneficiary, the assumptions, including the interest rate, and. 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. (b) Contents of notice. That's basically it. L. 101239, 7881(g)(2), substituted (as of the proposed termination date) for (as of the termination date). Electronic Code of Federal Regulations (e-CFR), CHAPTER XLPENSION BENEFIT GUARANTY CORPORATION, PART 4041TERMINATION OF SINGLE-EMPLOYER PLANS. 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 . (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. It's& the process under pension law that allows a single-employer pension plan to pay all of its obligations at once. L. 101239 effective as if included in the provision of the Single-Employer Pension Plan Amendments Act of 1986, Pub. Administration considerations for a plan termination - Milliman 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. user convenience only and is not intended to alter agency intent Title 29 was last amended 7/01/2023. Amendment by section 7893(c), (d) of Pub. (ii) and struck out former cl. 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. L. 100203, 9313(b)(3), as amended by Pub. Pub. (b)(3)(B). Pension Plan Termination Fact Sheet - Pension Benefit Guaranty Corporation L. 100203, 9314(a)(1)(B), inserted at end Clause (i) and clause (iii)(I) shall not apply to a plan described in section 412(i) of title 26.. You are using an unsupported browser. (c)(2)(A)(iii). Official websites use .gov L. 100203, 9313(a)(2)(A), substituted benefit liabilities for benefit commitments in subcls. (c) Spin-off/termination transactions. (b). Pub. (ii). An employer can terminate a plan for various reasons: As a result of a voluntary decision to terminate the plan. (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. This notice is telling you that we intend to terminate your installment agreement and seize (levy) your wages and/or bank accounts if you take no action. How To Properly Terminate A Retirement Plan: A 7-Step Guide Pub. Retirement Topics - Termination of Plan - Internal Revenue Service (a) Notice requirement(1) In general. What is a standard termination? In the case of a beneficiary of a deceased participant or an alternate payee, the plan administrator must issue a notice of plan benefits promptly to any person that becomes an affected party after the proposed termination date and on or before the distribution date . In the case of a beneficiary of a deceased participant or an alternate payee, the plan administrator must issue a notice of plan benefits promptly to any person that becomes an affected party after the proposed termination date and on or before the distribution date. L. 100203, 9312(c)(2), struck out former subcl. (D) generally. It is not an official legal edition of the CFR. 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 (e) which related to notification and appropriate proceedings upon a finding after authorized commencement of termination that the plan is unable to pay basic benefits when due. The company employs 14,000 workers in the U.S. New hires were locked out of [] L. 100203, 9314(a)(1)(A), added cl. (I) and (II). (4) If the plan benefits may be paid in a lump sum, the information in paragraph (d)(4) of this section. Pub. L. 99272, 11008(b), amended subsec. (I), inserted and, if applicable, the proposed distribution date after termination date, and in subcls. (c)(3)(D)(ii)(IV). Subsec. 247, provided that: Pub. Pension Plan Termination Fact Sheet | Pension Benefit Guaranty Subsec. Subsec. (II) which read as follows: the corporation shall establish a separate trust in connection with the plan for purposes of section 1349 of this title unless the corporation determines that all benefit commitments under the plan are benefits guaranteed by the corporation under section 1322 of this title.. Participant Notice for non-safe harbor 401(k) plan Termination Subtitle B - Regulations Relating to Labor (Continued) Chapter Xl - PENSION BENEFITGUARANTY CORPORATION Subchapter E - PLAN TERMINATIONS Date July 1, 2002 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. The plan administrator must, no later than the time the plan administrator files the standard termination notice with the PBGC, issue a notice of plan benefits to each person (other than the PBGC and any employee organization) who is an affected party as of the proposed termination date. Chapter 23: Separations. (c)(2)(B)(ii)(IV). the information provided to the corporation under clauses (i) and (iii) is accurate and complete. A statement that, in order to terminate in a standard termination, plan assets must be sufficient to provide all plan benefits under the plan; (4) Cessation of accruals. 5049, provided that: Pub. Enhanced content is provided to the user to provide additional context. 1 CFR 1.1 (c)(2)(C), (D). 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. Section 412, referred to in subsecs. Pub. Navigate by entering citations or phrases The corporation may prescribe the form and manner of the provision of information under this subparagraph, which shall include delivery in written, electronic, or other appropriate form to the extent that such form is reasonably accessible to individuals to whom the information is required to be provided.