A statement that the plan administrator intends to terminate the plan in a standard termination as of a specified proposed termination date and will notify the affected party if the proposed termination date is changed to a later date or if the termination does not occur; (3) Sufficiency requirement. 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. 99272, 11007(a), added subsec. is available with paragraph structure matching the official CFR L. 100203, 9313(b)(5)(C), added subcl. Pub. A statement (as applicable) that. L. 110458, 105(e)(1), substituted subparagraph (A) or the regulations under subsection (a)(2) for subsection (a)(2). L. 101239, set out as a note under section 1002 of this title. L. 101239, 7881(g)(6), realigned margin of last sentence. Pub. If, after the plan administrator has begun to terminate the plan as authorized by subparagraph (B)(i) or (ii), the plan administrator finds that the plan is unable, or will be unable, to pay all benefits under the plan which are guaranteed by the corporation under section 1322 of this title, the plan administrator shall notify the corporation of such finding as soon as practicable thereafter. Former subcl. Comments or questions about document content can not be answered by OFR staff. Pub. L. 100203 applicable with respect to plan terminations under section 1341 of this title with respect to which notices of intent to terminate are provided under section 1341(a)(2) of this title after Dec. 17, 1987, and plan terminations with respect to which proceedings are instituted by the Pension Benefit Guaranty Corporation under section 1342 of this title after that date, see section 9312(d)(1) of Pub. (c)(2)(B)(ii)(IV). L. 103465, 778(a)(1)(A), added subcl. This document is available in the following developer friendly formats: Information and documentation can be found in our 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). Search & Navigation L. 100203, 9314(a)(1)(A), added cl. You are required to provide this information pursuant to section . If, after the plan administrator has begun to terminate the plan as authorized under subparagraph (B)(i), the plan administrator finds that the plan is unable, or will be unable, to pay benefit liabilities which are not benefits guaranteed by the corporation under section 1322 of this title, the plan administrator shall notify the corporation of such finding as soon as practicable thereafter. (I) and (II). If required under 4041.27, the annuity information described therein; (6) Benefit information. (1) Identifying information. The PBGC's standard termination forms and instructions package includes a model notice of intent to terminate. 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. (c)(2)(B)(i), (ii). ERISA Section 4044 Retirement Assumptions; . L. 99272, title XI, to which such amendment relates, see section 7893(h) of Pub. Pub. Amendment by section 7893(c), (d) of Pub. Except as provided in clause (ii), 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)(iii), the termination shall not take effect. . (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. Pub. 29 CFR 4041.24 - Notices of plan benefits. | Electronic Code of A statement that the plan administrator intends to terminate the plan in a standard termination as of a specified proposed termination date and will notify the affected party if the proposed termination date is changed to a later date or if the termination does not occur; (3) Sufficiency requirement. L. 101239, 7881(f)(7)(C), struck out at end If the corporation concurs in the finding of the plan administrator (or the corporation itself makes such a finding) the corporation shall take the actions set forth in subparagraph (B)(ii)(II) relating to the trust established for purposes of section 1349 of this title.. A lock ( (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. Subtitle B - Regulations Relating to Labor (Continued) Chapter Xl - PENSION BENEFITGUARANTY CORPORATION Subchapter E - PLAN TERMINATIONS Date July 1, 2002 Official websites use .gov (b)(5). (8) Continuation of monthly benefits. The name and PN of the plan, the name and EIN of each contributing sponsor, and the name, address, and telephone number of the person who may be contacted by an affected party with questions concerning the plan's termination; (2) Intent to terminate plan. in the case of a transaction or series of transactions which occur in a plan year beginning before, in the case of a transaction or series of transactions which occur in a plan year beginning on or after such date, the funding target attainment percentage determined under, the requirements of subparagraph (A) of paragraph (2) are met, and. 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 (2) Early issuance of NOIT. Subsec. Pub. 1980Subsec. 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. Plan Termination: Getting it Right | AMERICAN SOCIETY OF PENSION (g) which related to petition to the appropriate court for appointment of a trustee. 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 (iv) which read as follows: certification by the plan administrator that the information on which the enrolled actuary based the certifications under clause (ii) and the information provided to the corporation under clauses (i) and (iii) are accurate and complete.. It is not an official legal edition of the CFR. Subsec. Subsec. Learn more about the eCFR, its status, and the editorial process. (b). it determines, based on the notice sent under paragraph (2)(A) of subsection (b), that there is reason to believe that the plan is not sufficient for, it otherwise determines, on the basis of information provided by affected parties or otherwise obtained by the corporation, that there is reason to believe that the plan is not sufficient for. Pub. Pub. AstraZeneca Will Ax Its U.S. Workers' Pension Plan This Year The company, which calls itself AstraZeneca US, late last month sent 7,000 workers and retirees at its U.S-based research and manufacturing locations a notice of . Notice of Intent to Terminate (Form 600) PDF . From Distributions to the Final Form 5500 2 WHY TERMINATE? A single-employer plan is sufficient for guaranteed benefits if there is no amount of unfunded guaranteed benefits under the plan. Pension risks are increasing Prior to amendment, subpar. Pub. written Notice of Plan Benefits describing the benefits that you are entitled to under the Plan. guide. Subsec. Pub. Locked padlock Enhanced content is provided to the user to provide additional context. Step 4 of 8: Participant Notification (applies only to plans with common law employees) Pub. L. 109280 to which the amendment relates, except as otherwise provided, see section 112 of Pub. termination of their plan and about their benefits upon termination. The most commonly required filing is a closing, or final IRS Form 5500, alerting the IRS that the Retirement Plan is terminating. You must get this notice, called the Notice of Intent to Terminate, at least 60 days before the "termination" date. whether the plan is sufficient for guaranteed benefits as of such dates; the name and address of each participant and beneficiary under the plan as of such date, and, such other information as shall be prescribed by the corporation by regulation as necessary to enable the corporation to be able to make payments to participants and beneficiaries as required under, the information on which the enrolled actuary based the certifications under clause (ii) is accurate and complete, and. L. 100203, 9313(a)(2)(D), substituted benefit liabilities for benefit commitments in subcls. (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. 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. the hierarchy of the document. L. 103465, 778(b)(1), inserted Federal law or after under any similar. L. 101239, 7881(g)(5), substituted proposed termination date for termination date. Subsec. Pub. (b) relating to notice of sufficiency of plan assets. (d). You do need to communicate to participant (s) the plan is terminating including a 15-day advance 204 (h) notice unless issued before if plan was previously frozen. Notice Single-Employer Plan Termination (Form 500) PDF. C. Notice of Intent to Terminate (NOIT) . Share sensitive information only on official, secure websites. 29 CFR 4041.27 - Notice of annuity information. 2. The company employs 14,000 workers in the U.S. New hires were locked out of [] L. 100203, 9313(b)(3), as amended by Pub. site when drafting amendatory language for Federal regulations: (8) Continuation of monthly benefits. Notice of Intent to Terminate ever required for a DC plan termination Displaying title 29, up to date as of 7/06/2023. October 11, 2017 in 401 (k) Plans Share Followers 0 the plan name and number; the proposed termination date; a statement concerning the cessation of accruals (benefit accruals are ceasing); and a statement that there are sufficient plan assets to meet the accruals provided under the plan. 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. For an affected party who, as of the proposed termination date, has validly elected a form and starting date with respect to plan benefits not yet in pay status, or with respect to whom the plan administrator has determined that a nonconsensual lump sum distribution will be made, the plan administrator must include in the notice of plan benefits. L. 100203, 9313(a)(2)(E), substituted in text, no amount of unfunded benefit liabilities for no amount of unfunded benefit commitments and in heading, benefit liabilities for benefit commitments. (b)(2)(C)(i)(I). No changes found for this content after 1/03/2017. L. 100203 9313(b)(5)(A), struck out and at end. the provision of new information to the corporation relating to a previous request. If you have questions or comments regarding a published document please A .gov website belongs to an official government organization in the United States. Except as provided in subparagraph (B), the Corporation shall not issue any notice described in paragraph (1)(B) until 90 days after the date on which the Corporation makes the determination described in paragraph (1)(A). Pub. The plan administrator must provide notices in accordance with this section to each affected party entitled to plan benefits other than an affected party whose plan benefits will be distributed in the form of a nonconsensual lump sum. Regulation Y (a) relating to filing of notice that the plan is to be terminated. in any other case, before the later of 15 days after the date of the enactment of this Act or 45 days after the date of the filing of such notice. The PBGC may consider a notice of intent to terminate to be timely under paragraph (a)(1) of this section if the notice was early by a de minimis number of days and the PBGC finds that the early issuance was the result of administrative error. Except in the case of an acquisition, takeover, or leveraged buyout, the preceding provisions of this subsection shall not apply if the contributing sponsor demonstrates to the satisfaction of the Corporation that the contributing sponsor is experiencing substantial business hardship. Subsec. 820, and as so amended, no longer contains a subsec. Subsec. 1. Pub. L. 99272, 11007(b), amended subsec. Subsec. (i) Benefit accruals will cease as of the termination date, but will continue if the plan does not terminate; (ii) A plan amendment has been adopted under which benefit accruals will cease, in accordance with section 204(h) of ERISA, as of the proposed termination date or a specified date before the proposed termination date, whether or not the plan is terminated; or. In the case of a standard termination of a plan under section 4041(b) of the, determines that the assets of the plan are sufficient for benefit commitments (within the meaning of section 4041(d)(1) of the, in the case of plans described in subparagraph (A)(i), before 15 days after the date of the enactment of this Act, or.