Source: http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&rgn=div6&view=text&node=29:9.1.5.17.11.3&idno=29
Timestamp: 2014-10-02 06:29:32
Document Index: 455641522

Matched Legal Cases: ['art 4041', 'ART 4041', '§4041', '§4041', '§4041', '§4041', '§4041', '§4041', '§4281', '§4041', '§4281', '§4041', '§4281', '§4041', 'art 4219', '§4041', '§4281', 'art 4281', '§4041', '§4281', '§4041']

Title 29 → Subtitle B → Chapter XL → Subchapter E → Part 4041a → Subpart C
PART 4041A—TERMINATION OF MULTIEMPLOYER PLANS Subpart C—Plan Sponsor DutiesContents§4041A.21 General rule.
§4041A.23 Imposition and collection of withdrawal liability.
§4041A.21 General rule.The plan sponsor of a multiemployer plan that terminates by mass withdrawal shall continue to administer the plan in accordance with applicable statutory provisions, regulations, and plan provisions until a trustee is appointed under section 4042 of ERISA or until plan assets are distributed in accordance with subpart D of this part. In addition, the plan sponsor shall be responsible for the specific duties described in this subpart. Back to Top
§4041A.22 Payment of benefits.(a) Except as provided in paragraph (b), the plan sponsor shall pay any benefit attributable to employer contributions, other than a death benefit, only in the form of an annuity. (b) The plan sponsor may pay a benefit in a form other than an annuity if—(1) The plan distributes plan assets in accordance with subpart D of this part; (2) The PBGC approves the payment of the benefit in an alternative form pursuant to §4041A.27; or (3) The value of the entire nonforfeitable benefit does not exceed $1,750. (c) Except to the extent provided in the next sentence, the plan sponsor shall not pay benefits in excess of the amount that is nonforfeitable under the plan as of the date of termination, unless authorized to do so by the PBGC pursuant to §4041A.27. Subject to the restriction stated in paragraph (d) of this section, however, the plan sponsor may pay a qualified preretirement survivor annuity with respect to a participant who died after the date of termination. (d) The payment of benefits subject to reduction shall be discontinued to the extent provided in §4281.31 if the plan sponsor determines, in accordance with §4041A.24, that the plan's assets are insufficient to provide all nonforfeitable benefits. (e) The plan sponsor shall, to the extent provided in §4281.41, suspend the payment of nonguaranteed benefits if the plan sponsor determines, in accordance with §4041A.25, that the plan is insolvent. (f) The plan sponsor shall, to the extent required by §4281.42, make retroactive payments of suspended benefits if it determines under that section that the level of the plan's available resources requires such payments. Back to Top
§4041A.23 Imposition and collection of withdrawal liability.Until plan assets are distributed in accordance with subpart D of this part, or until the end of the plan year as of which the PBGC determines that plan assets (exclusive of claims for withdrawal liability) are sufficient to satisfy all nonforfeitable benefits under the plan, the plan sponsor shall be responsible for determining, imposing and collecting withdrawal liability (including the liability arising as a result of the mass withdrawal), in accordance with part 4219, subpart C, of this chapter and sections 4201 through 4225 of ERISA. Back to Top
§4041A.25 Periodic determinations of plan solvency.(a) Annual insolvency determination. The plan sponsor of a plan that has been amended to eliminate all benefits that are subject to reduction under section 4281(c) of ERISA shall determine in writing whether the plan is expected to be insolvent for the first plan year beginning after the effective date of the amendment and for each plan year thereafter. In the event that a plan adopts more than one amendment reducing benefits under section 4281(c) of ERISA, the initial determination shall be made for the first plan year beginning after the effective date of the amendment that effects the elimination of all such benefits, and a determination shall be made for each plan year thereafter. The plan sponsor of a plan under which no benefits are subject to reduction under section 4281(c) of ERISA as of the date the plan terminated shall determine in writing whether the plan is expected to be insolvent. The initial determination shall be made for the second plan year beginning after the first plan year for which it is determined under section 4281(b) of ERISA that the value of nonforfeitable benefits under the plan exceeds the value of the plan's assets. The plan sponsor shall also make a solvency determination for each plan year thereafter. A determination required under this paragraph shall be made no later than six months before the beginning of the plan year to which it applies. (b) Other determination of insolvency. Whether or not a prior determination of plan solvency has been made under paragraph (a) of this section (or under section 4245 of ERISA), a plan sponsor that has reason to believe, taking into account the plan's recent and anticipated financial experience, that the plan is or may be insolvent for the current or next plan year shall determine in writing whether the plan is expected to be insolvent for that plan year. (c) Benefit suspensions. If the plan sponsor determines that the plan is, or is expected to be, insolvent for a plan year, it shall suspend benefits in accordance with §4281.41. (d) Insolvency notices. If the plan sponsor determines that the plan is, or is expected to be, insolvent for a plan year, it shall issue notices of insolvency or annual updates and notices of insolvency benefit level of the PBGC and to plan participants and beneficiaries in accordance with part 4281, subpart D. Back to Top
§4041A.26 Financial assistance.A plan sponsor that determines a resource benefit level under section 4245(b)(2) of ERISA that is below the level of guaranteed benefits or that determines that the plan will be unable to pay guaranteed benefits for any month during an insolvency year shall apply for financial assistance from the PBGC in accordance with §4281.47. Back to Top
§4041A.27 PBGC approval to pay benefits not otherwise permitted.Upon written application by the plan sponsor, the PBGC may authorize the plan to pay benefits other than nonforfeitable benefits or to pay benefits valued at more than $1,750 in a form other than an annuity. The PBGC will approve such payments if it determines that the plan sponsor has demonstrated that the payments are not adverse to the interests of the plan's participants and beneficiaries generally and do not unreasonably increase the PBGC's risk of loss with respect to the plan. Back to Top