notice of intent to terminate pension plan

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. (9) A statement, if applicable, that benefits may be subject to reduction because of the limitations on the amounts guaranteed by the PBGC or because plan assets are insufficient to pay for full benefits (pursuant to part 4022, subparts B and D, of this chapter) and that payments in excess of the amount guaranteed by the PBGC may be recouped by the PBGC (pursuant to part 4022, subpart E, of this chapter). (d)(1). (b) Contents of notice. 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. Pub. L. 99272, 11007(a), 11009(a), added subsec. L. 99272, 11009(b)(2), redesignated subsec. Step 1 of 8: Review your Plan records and prepare for termination. Please go to PBGC.gov'sSpanish home page for more information available in Spanish. (5) The information in paragraphs (c) through (e) of this section, as applicable. (c)(2)(D). Subsec. This web site is designed for the current versions of The notice tells you why we are taking this action. (d) Benefits of persons with valid elections or de minimis benefits. Use the navigation links in the gray bar above to view the table of contents that this content belongs to. Subsec. The PBGC's standard termination forms and instructions package includes a model notice of intent to terminate. L. 100203, 9313(b)(2), (5)(B), (D), redesignated former subcl. (ii). 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. Subsec. will also bring you to search results. (c)(3)(C)(i). The PBGC's standard termination forms and instructions package includes a model notice of intent to terminate. Pressing enter in the search box 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. Subsec. 5049, provided that: Pub. 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. From the NOIT to the PBGC Form 500 5. (b)(3)(A)(ii). (c)(2)(C), (D). Pub. At the time of . Search & Navigation the hierarchy of the document. L. 110458, set out as a note under section 72 of Title 26, Internal Revenue Code. Subsec. A letter works, or you can use the PBGC format Notice of Intent to Terminate just for ease. 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. 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. Electronic Code of Federal Regulations (e-CFR), CHAPTER XLPENSION BENEFIT GUARANTY CORPORATION, PART 4041TERMINATION OF SINGLE-EMPLOYER PLANS. L. 103465, 778(a)(1)(A), added subcl. the information provided to the corporation under clause (ii) is accurate and complete. Single-employer plans canister terminate in other ways as well. Pub. (III). This contact form is only for website help or website suggestions. The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. Subsec. L. 96364, 403(d)(3), struck out subsec. L. 100203, 9313(b)(5)(C), added subcl. L. 100203, 9313(a)(2)(A), substituted benefit liabilities for benefit commitments in subcls. Chapter 23: Separations. Amendment by section 9313(a)(1)(2)(E), (b)(1)(5) of Pub. 1341] on or after January 1, 1986, but before the date of . Title 29 was last amended 7/01/2023. will bring you to those results. 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. The plan administrator must include in each notice of plan benefits. The requirements of this subparagraph are met if each, Liquidation in bankruptcy or insolvency proceedings, The requirements of this clause are met by a, Reorganization in bankruptcy or insolvency proceedings, Termination required to enable payment of debts while staying in business or to avoid unreasonably burdensome pension costs caused by declining workforce, Notification of determinations by the corporation, Determinations by the corporation relating to plan sufficiency for guaranteed benefits and for benefit liabilities, If the corporation determines that the requirements for a distress termination set forth in paragraphs (1) and (2) are met, the corporation shall, Cases of sufficiency for benefit liabilities, Cases of sufficiency for guaranteed benefits without a finding of sufficiency for benefit liabilities, Finding after authorized commencement of termination that plan is unable to pay benefits, Finding with respect to benefit liabilities which are not guaranteed benefits, Finding with respect to guaranteed benefits, Administration of the plan during interim period, The requirements of this clause are met by the plan, Limitation on the conversion of a defined benefit plan to a defined contribution plan. The plan administrator must include in the notice of intent to terminate to each affected party other than the PBGC all of the following information: (1) The name of the plan and of the contributing sponsor; (2) The EIN of the contributing sponsor and the PN; if there is no EIN or PN, the notice must so state; (3) The name, address, and telephone number of the person who may be contacted by an affected party with questions concerning the plan's termination; (4) A statement that the plan administrator expects to terminate the plan in a distress termination on a specified proposed termination date; (5) The cessation of accruals information in 4041.23(b)(4); (6) 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; (7) A statement of whether plan assets are sufficient to pay all guaranteed benefits or all benefit liabilities; (8) A brief description of what benefits are guaranteed by the PBGC (e.g., if only a portion of the benefits are guaranteed because of the phase-in rule, this should be explained), and a statement that participants and beneficiaries also may receive a portion of the benefits to which each is entitled under the terms of the plan in excess of guaranteed benefits; and. For an affected party in pay status as of the proposed termination date, the plan administrator must include in the notice of plan benefits. (b)(2)(A)(i). 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. You are using an unsupported browser. (D) read as follows: when the final distribution of assets occurs, the plan is sufficient for benefit commitments (determined as of the termination date)., Subsec. Pub. Subsec. result, it may not include the most recent changes applied to the CFR. 5050, provided that: Amendment by section 7881(f)(7), (g)(1)(6) of Pub. The notice of intent to terminate must include. 7, 1986, 100 Stat. 7, 1986, 100 Stat. 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. (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.. L. 100203, 9313(a)(2)(D), substituted benefit liabilities for benefit commitments in introductory provision. the provision of new information to the corporation relating to a previous request. L. 103465, 778(b)(1), inserted Federal law or after under any similar. If you work for a Federal agency, use this drafting Subsec. (D) as (C) and struck out former subpar. Microsoft Edge, Google Chrome, Mozilla Firefox, or Safari. Pub. (f) as (e). L. 100203, 9313(a)(2)(A), substituted benefit liabilities for benefit commitments. Subsec. Pub. See Reportable Events and Large Unpaid Contributionsfor forms andreporting requirements. Types of single-employer termination are: (a). Any extension may be made upon such terms and conditions (including the payment of benefits) as are agreed upon by the corporation and the plan administrator. In the case of a spin-off/termination transaction (as described in 4041.23(c)), the plan administrator must provide all participants and beneficiaries in the original plan who are also participants or beneficiaries in the ongoing plan (as of the proposed termination date) with a notice describing the transaction no later than the date on which the plan . L. 109280, title V, 506(c), Aug. 17, 2006, 120 Stat. (c)(2)(B)(ii)(IV), probably means chapter 11 of Title 11, Bankruptcy. Former subcl. (b)(2)(A) and (c)(2)(A), was amended generally by Pub. (b)(3)(A)(ii). 2. (2) Spin-off/termination transactions. (ii) and struck out former cl. For purposes of this subparagraph, a contributing sponsor shall be considered as experiencing substantial business hardship if the contributing sponsor has been operating, and can demonstrate that the contributing sponsor will continue to operate, at an economic loss., General rules governing single-employer plan terminations, Adherence to collective bargaining agreements, Standard termination of single-employer plans, As soon as practicable after the date on which the notice of intent to terminate is provided pursuant to subsection (a)(2), the plan, Notice to participants and beneficiaries of benefit commitments, No later than the date on which a notice is sent by the plan, including the following information used in determining such, Notice from the corporation of noncompliance, Within 60 days after receipt of the notice under subparagraph (A), the corporation shall issue a notice of noncompliance to the plan, Final distribution of assets in absence of notice of noncompliance, In connection with any final distribution of assets pursuant to the standard termination of the plan under this subsection, the plan, Certification to the corporation of final distribution of assets, Special rule for certain plans where cessation or change in membership of a controlled group, Except as provided in subparagraphs (B) and (D), if, Subparagraph (A) shall not apply to any transaction or series of transactions unless, any employer maintaining the plan immediately before or after such transaction or series of transactions, For purposes of subparagraph (A), a plan shall be treated as fully funded with respect to any transaction or series of transactions if, Distress termination of single-employer plans, unless the corporation determines the information is not necessary for purposes of paragraph (3)(A) or, in any case in which the plan is not sufficient for, Determination by the corporation of necessary distress criteria, Upon receipt of the notice of intent to terminate required under subsection (a)(2) and the information required under subparagraph (A), the corporation shall determine whether the requirements of this subparagraph are met as provided in clause (i), (ii), or (iii). formatting. Background and more details are available in the Pub. 1 CFR 1.1 Pub. FAR). Esta pgina no ha sido traducida. Step 4 of 8: Participant Notification (applies only to plans with common law employees) 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). (1) The name and PN of the plan, the name and EIN of each contributing sponsor, and the name, address, and telephone number of an individual who may be contacted to answer questions concerning plan benefits; (2) The proposed termination date given in the notice of intent to terminate and any extended proposed termination date under 4041.25(b); (3) If the amount of plan benefits set forth in the notice is an estimate, a statement that the amount is an estimate and that plan benefits paid may be greater than or less than the estimate; (4) Except in the case of an affected party in pay status for more than one year as of the proposed termination date, (i) The personal data (if available) needed to calculate the affected party's plan benefits, along with a statement requesting that the affected party promptly correct any information he or she believes to be incorrect; and, (ii) If any of the personal data needed to calculate the affected party's plan benefits is not available, the best available data, along with a statement informing the affected party of the data not available and affording him or her the opportunity to provide it; and. A .gov website belongs to an official government organization in the United States. the extension would result in a greater likelihood that benefit commitments under the plan would be paid in full. L. 103465, 778(a)(1)(B), (C), added subcl. 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, 9313(a)(2)(C)(i), added cl. 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). The periodic benefits of individuals who have already begun receiving Plan benefits will not be affected by the Plan's termination. (c)(3)(A). The Corporation shall consider and respond to such complaints not later than 90 days after the date on which the Corporation makes the determination described in paragraph (1)(A). Pub. Plan administrators can give notices to participants electronically (online) if it contacts certain conditions.Participant EventsPlan EventsElectronic Reminders Retirement Topics - Notices | Internal Revenue Service - Notice of Intent to Terminate (Defined Benefit Plan) L. 100203 9313(b)(5)(A), struck out and at end. (III). L. 99272, title XI, 11008(c), Apr. L. 101239, 7893(c), realigned margin of last sentence. 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. L. 101239, set out as a note under section 1002 of this title. Amendment by section 9312(c)(1), (2) of Pub. L. 100203, 9313(a)(2)(D), substituted in heading and text benefit liabilities for benefit commitments. Notice of Election Under ERISA 4062(e)(4), Notice of Additional Contributions Under ERISA 4062(e)(4), Notice of Failure to Make Additional Contributions Under ERISA 4062(e)(4)(e), Standard Terminations (Full set of PDF Forms), Certification of Sufficiency (Schedule EA-S to Form 500), Follow Standard Termination instructions (page 5 of PDF instructions), Designation of Representative (Schedule REP-S to Form 500), Notice Single-Employer Plan Termination (Form 500), Post-Distribution Certification Step 3 of 8: Execute a Termination Amendment. L. 101239, 7881(f)(7)(A), (B), struck out (or its designee under section 1349(b) of this title) before to be able and substituted section 1322(c) of this title for section 1349 of this title. The word a probably should appear. 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 Fixing America's Surface Transportation (FAST) Act . (c) Benefits of persons in pay status. If required under 4041.27, the annuity information described therein; (6) Benefit information. Pub. Choosing an item from Depending on the type of Plan, there are various government filings that must be completed. L. 100203, as amended, set out as a note under section 1301 of this title. Pub. (1) In general. 280, provided that: Amendment by Pub. L. 100203, 9313(b)(3), as amended by Pub. (b)(3)(B). (b)(3)(B). Pub. So in original. (c) Spin-off/termination transactions. 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. Subsec. 1987Subsec. Pub. 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. (c) Spin-off/termination transactions. Pub. Selection of an Annuity Provider 4. Subsec. L. 99272, title XI, 11019, Apr. (I) which read as follows: It has reason to believe that any requirement of subsection (a)(2) or subparagraph (A) or (B) has not been met, or. developer resources. The company employs 14,000 workers in the U.S. New hires were locked out of [] L. 100203, 9313(a)(1), amended subpar. 2008Subsec. (3) The notice to affected parties other than the PBGC must contain all of the information specified in paragraph (b) of this section. Subsec. (b) Contents of notice to affected parties other than the PBGC. Not less than 60 days before the proposed termination date of a standard termination under subsection (b) or a distress termination under subsection (c), the plan administrator shall provide to each affected party (other than the corporation in the case of a standard termination) a written notice of intent to terminate stating that such termination is intended and the proposed termination date. (I) designation and substituted comma for dash before the corporation shall commence, substituted period for ,and after section 1342 of this title, and struck out former subcl. Single-employer plans can terminate in other ways as well. 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. (c)(2)(B)(i), (ii). (c)(3)(D). Lock your comments to the Pension Benefit Guaranty Corp oration, Office of General Counsel, 445 12th Street, SW, Washington, D.C., 20024. (8) Continuation of monthly benefits.

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