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Pension Benefit Guaranty Corporation. A U.S. Government Agency. Menu. Search. About PBGC. ... Find out the rules and requirements for standard termination of a fully funded pension plan, including notices, filings, distribution of benefits, and audits. ... Find out the circumstances under which PBGC can seek the termination of an underfunded plan.

Pension Benefit Guaranty Corporation Standard Termination Compliance Division 445 12th Street SW, Washington, DC 20024-2101; In accordance with the requirements of the Notice of Intent to Terminate, the plan administrator must also promptly inform all affected parties of the decision not to terminate the plan.

(a) Notice and distribution requirements. A standard termination is valid if the plan administrator— (1) Issues a notice of intent to terminate to all affected parties (other than the PBGC) in accordance with § 4041.23; (2) Issues notices of plan benefits to all affected parties entitled to plan benefits in accordance with § 4041.24;

Upon a decision by the PBGC on reconsideration affirming the issuance of a notice of noncompliance or, if earlier, upon the plan administrator's decision not to request reconsideration, the plan administrator must notify the affected parties (other than the PBGC), and any persons who were provided notice under § 4041.23(c), in writing that the ...

A standard termination is valid if the plan administrator— ( 1 ) Issues a notice of intent to terminate to all affected parties (other than the PBGC) in accordance with § 4041.23 ; ( 2 ) Issues notices of plan benefits to all affected parties entitled to plan benefits in accordance with § 4041.24 ;

Pension Benefit Guaranty Corporation. Part 4041. Authority: 29 U.S.C. 1302(b)(3), 1341, 1344, 1350. Source: 62 FR 60428 ... Requirements for a standard termination. § 4041.22: Administration of plan during pendency of termination process. § 4041.23: Notice of intent to terminate.

(a) Notice requirement. 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.In the case of a beneficiary of a deceased participant or an alternate payee, the ...

The Pension Benefit Guaranty Corporation (PBGC) was established under title IV of the Employee Retirement Income Security Act of 1974 (ERISA) (88 Stat. 829, Public Law 93-406) to insure private pension beneficiaries against the complete loss of promised benefits if their defined benefit pension plan is terminated without adequate funding.

Pension Benefit Guaranty Corporation (PBGC) coverage, for example, there are additional requirements to terminate a plan. The following is a general list of possible steps in terminating a defined benefit plan. The actual process may differ depending on individual circumstances. 1.

PBGC, the PBGC will determine wheth-er the requirements for a distress ter-mination set forth in §4041.41(c) have been met and will notify the plan ad-ministrator in writing of its deter-mination, in accordance with para-graph (b) or (c) of this section. (b) Qualifying termination. If the PBGC determines that all of the re-

Involuntary Termination: PBGC may terminate a pension plan – even if a company has not filed its own plan termination – if: The plan has not met the minimum funding requirements; The plan cannot pay current benefits when due; A lump-sum payment has been made to a participant who is a substantial owner of the sponsoring company, or

The company must meet strict legal requirements and demonstrate to the Pension Benefit Guaranty Corporation (PBGC) that it cannot sustain the plan while staying in business. The PBGC, a federal agency that insures private-sector pensions, reviews and approves distress terminations.

These forms help provide transparency and keep all parties well-informed of their rights and available choices during the plan’s termination period. As part of the process, plan sponsors must file PBGC Form 500, the standard termination notice, to notify the Pension Benefit Guaranty Corporation (PBGC) of the plan's intent to terminate.

Involuntary Termination. PBGC can terminate a plan on its own in certain situations, such as to protect plan participants or PBGC’s insurance program. In these cases, PBGC is appointed trustee and assumes responsibility for the plan. Learn more about single-employer plan terminations in PBGC’s Pension Plan Termination Fact Sheet at https ...

Employers must notify all participants, beneficiaries, and relevant regulatory bodies about their intent to terminate the pension plan. For standard terminations, a notice must be issued at least 60 days before you file the termination with the PBGC. 3. Submit the Termination Notice. The termination notice is submitted to the PBGC for review.

(Defined Benefit Plan Termination) ... the plan administrator files Form 500 Form 500 "Standard Termination Notice Single-Employer Plan Termination" with the Pension Benefit Guaranty Corporation (PBGC). ERISA § 4041(b)(2)(B) (29 U.S.C. § 1341(b)(2)(B)); 29 C.F.R. § 4041.24. ... including step by step rules to satisfy PBGC filing requirements ...

The notice includes plan and participant information that PBGC needs to process the termination filing. Does PBGC review the termination filing? Under the pension law, we have 60 days after receipt of a complete filing to review the termination for compliance with the law and regulations, but may extend or suspend the 60-day period if we need ...

The Pension Benefit Guaranty Corporation (PBGC) has issued proposed regulations on the new termination information disclosure requirements for single-employer pension plan sponsors, administrators, and the PBGC. 72 FR 68542 (December 5, 2007).

This Toolkit provides essential resources for practitioners involved in terminating defined contribution and defined benefit plans in accordance with the Internal Revenue Code (Code) and the Employee Retirement Income Security Act of 1974 (ERISA). It includes guidance on various reasons for plan termination, such as business needs, bankruptcy, corporate transactions, or transitioning to a ...