PART 4041—TERMINATION OF SINGLE-EMPLOYER PLANS Authority: 29 U.S.C. 1302(b)(3), 1341, 1344, 1350. Source: 62 FR 60428, Nov. 7, 1997, unless otherwise noted. Subpart A—General Provisions § 4041.1 Purpose and scope. This part sets forth the rules and procedures for terminating a single-employer plan in a standard or distress termination under section 4041 of ERISA, the exclusive means of voluntarily terminating a plan. § 4041.2 Definitions. The following terms are defined in § 4001.2 of this chapter: affected party, annuity, benefit liabilities, Code, contributing sponsor, controlled group, distress termination, distribution date, EIN, employer, ERISA, guaranteed benefit, insurer, irrevocable commitment, IRS, mandatory employee contributions, normal retirement age, notice of intent to terminate, PBGC, person, plan administrator, plan year, PN, single-employer plan, standard termination, termination date, and title IV benefit. In addition, for purposes of this part: Distress termination notice Distribution notice Majority owner (1) An unincorporated trade or business; (2) The capital interest or the profits interest in a partnership; or (3) Either the voting stock of a corporation or the value of all of the stock of a corporation. Notice of noncompliance Notice of plan benefits Participant (1) Any individual who is currently in employment covered by the plan and who is earning or retaining credited service under the plan, including any individual who is considered covered under the plan for purposes of meeting the minimum participation requirements but who, because of offset or similar provisions, does not have any accrued benefits; (2) Any nonvested individual who is not currently in employment covered by the plan but who is earning or retaining credited service under the plan; and (3) Any individual who is retired or separated from employment covered by the plan and who is receiving benefits under the plan or is entitled to begin receiving benefits under the plan in the future, excluding any such individual to whom an insurer has made an irrevocable commitment to pay all the benefits to which the individual is entitled under the plan. Plan benefits Proposed termination date Residual assets Standard termination notice State guaranty association § 4041.3 Computation of time; filing and issuance rules. (a) Computation of time. (b) Filing with the PBGC Method and date of filing. (2) Where to file. (c) Issuance to third parties. (1) Method and date of issuance. (2) Omission of affected parties. (i) After-discovered affected parties. (ii) Unlocated participants. (3) Deceased participants. (4) Form of notices to affected parties. (5) Foreign languages. (i) Include a prominent legend in that common non-English language advising them how to obtain assistance in understanding the notice; or (ii) Provide the notice in that common non-English language to those affected parties literate only in that language. [62 FR 60428, Nov. 7, 1997, as amended at 68 FR 61353, Oct. 28, 2003] § 4041.4 Disaster relief. When the President of the United States declares that, under the Disaster Relief Act (42 U.S.C. 5121, 5122(2), 5141(b)), a major disaster exists, the Executive Director of the PBGC (or his or her designee) may, by issuing one or more notices of disaster relief, extend by up to 180 days any due date under this part. § 4041.5 Record retention and availability. (a) Retention requirement Persons subject to requirement; records to be retained. (2) Retention period. (3) Electronic recordkeeping. (b) Availability of records. [68 FR 61353, Oct. 28, 2003] § 4041.6 Effect of failure to provide required information. If a plan administrator fails to provide any information required under this part within the specified time limit, the PBGC may assess a penalty under section 4071 of ERISA. The PBGC may also pursue any other equitable or legal remedies available to it under the law, including, if appropriate, the issuance of a notice of noncompliance under § 4041.31. [62 FR 60428, Nov. 7, 1997, as amended at 81 FR 29766, May 13, 2016] § 4041.7 Challenges to plan termination under collective bargaining agreement. (a) Suspension upon formal challenge to termination Notice of formal challenge. (ii) If the PBGC is advised of a challenge described in paragraph (a)(1)(i) of this section after the time specified therein, the PBGC may suspend the termination proceeding and will so advise the plan administrator in writing. (2) Standard terminations. (i) The running of all time periods specified in ERISA or this part relevant to the termination will be suspended; and (ii) The plan administrator must comply with the prohibitions in § 4041.22. (3) Distress terminations. (i) The issuance by the PBGC of any notice of inability to determine sufficiency or distribution notice will be stayed or, if any such notice was previously issued, its effectiveness will be stayed; (ii) The plan administrator must comply with the prohibitions in § 4041.42; and (iii) The plan administrator must file a distress termination notice with the PBGC pursuant to § 4041.45. (b) Existing collective bargaining agreement. (c) Formal challenge to termination. (1) Any procedure specified in the collective bargaining agreement for resolving disputes under the agreement commences; or (2) Any action before an arbitrator, administrative agency or board, or court under applicable labor-management relations law commences. (d) Resolution of challenge. (1) Challenge sustained. (2) Termination sustained. (i) The termination proceeding will continue from the point where it was suspended; (ii) All actions taken to effect the termination before the suspension will be effective; (iii) Any time periods that were suspended will resume running from the date of the PBGC's notice of the reactivation of the proceeding; (iv) Any time periods that had fewer than 15 days remaining will be extended to the 15th day after the date of the PBGC's notice, or such later date as the PBGC may specify; and (v) In a distress termination, the PBGC will proceed to issue a notice of inability to determine sufficiency or a distribution notice (or reactivate any such notice stayed under paragraph (a)(3) of this section), either with or without first requesting updated information from the plan administrator pursuant to § 4041.45(c). (e) Final resolution of challenge. (1) The parties involved in the challenge enter into a settlement that resolves the challenge; (2) A final award, administrative decision, or court order is issued that is not subject to review or appeal; or (3) A final award, administrative decision, or court order is issued that is not appealed, or review or enforcement of which is not sought, within the time for filing an appeal or requesting review or enforcement. (f) Involuntary termination by the PBGC. § 4041.8 Post-termination amendments. (a) Plan benefits. (1) Does not decrease the value of the participant's or beneficiary's plan benefits under the plan's provisions in effect on the termination date; and (2) Does not eliminate or restrict any form of benefit available to the participant or beneficiary on the plan's termination date. (b) Residual assets. (c) Permitted decreases. (1) The decrease is necessary to meet a qualification requirement under section 401 of the Code; (2) The participant's or beneficiary's allocation of residual assets is paid in the form of an increase in the participant's or beneficiary's plan benefits; or (3) The decrease is offset by assets that would otherwise revert to the contributing sponsor or by additional contributions. (d) Distress terminations. Subpart B—Standard Termination Process § 4041.21 Requirements for a standard termination. (a) Notice and distribution requirements. (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; (3) Files a standard termination notice with the PBGC in accordance with § 4041.25; (4) Distributes the plan's assets in satisfaction of plan benefits in accordance with § 4041.28(a) and (c); and (5) In the case of a spin-off/termination transaction (as defined in § 4041.23(c)), issues the notices required by § 4041.23(c), § 4041.24(f), and § 4041.27(a)(2) in accordance with such sections. (b) Plan sufficiency Commitment to make plan sufficient. (i) It is made to the plan; (ii) It is in writing, signed by the contributing sponsor or controlled group member(s); and (iii) In any case in which the person making the commitment is the subject of a bankruptcy liquidation or reorganization proceeding, as described in § 4041.41(c)(1) or (c)(2), the commitment is approved by the court before which the liquidation or reorganization proceeding is pending or a person not in bankruptcy unconditionally guarantees to meet the commitment at or before the time distribution of assets is required. (2) Alternative treatment of majority owner's benefit. (i) The majority owner's election is in writing; (ii) In any case in which the plan would require the spouse of the majority owner to consent to distribution of the majority owner's receipt of his or her plan benefits in a form other than a qualified joint and survivor annuity, the spouse consents in writing to the election; (iii) The majority owner makes the election and the spouse consents during the time period beginning with the date of issuance of the first notice of intent to terminate and ending with the date of the last distribution; (iv) Neither the majority owner's election nor the spouse's consent is inconsistent with a qualified domestic relations order (as defined in section 206(d)(3) of ERISA); and (v) In any case in which the majority owner has an option to acquire any outstanding interest in an organization, such interest will be considered as owned by such person only if the following requirements are met: (A) The person has a 5 percent or more direct ownership interest; or (B) Such person has been a member of the board of directors or officer of the plan sponsor, or a fiduciary of the plan for each of the 3 years immediately preceding the date of the plan termination. [62 FR 60428, Nov. 7, 1997, as amended at 90 FR 39327, Aug. 15, 2025; 90 FR 46348, Sept. 26, 2025] § 4041.22 Administration of plan during pendency of termination process. (a) In general. (1) Purchase irrevocable commitments to provide any plan benefits; or (2) Pay benefits attributable to employer contributions, other than death benefits, in any form other than an annuity. (b) Exception. (1) The participant has separated from active employment or is otherwise permitted under the Code to receive the distribution; (2) The distribution is consistent with prior plan practice; and (3) The distribution is not reasonably expected to jeopardize the plan's sufficiency for plan benefits. § 4041.23 Notice of intent to terminate. (a) Notice requirement In general. (2) Early issuance of NOIT. de minimis (b) Contents of notice. (1) Identifying information. (2) Intent to terminate plan. (3) Sufficiency requirement. (4) Cessation of accruals. (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 (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. (6) Benefit information. (7) Summary plan description. (8) Continuation of monthly benefits. (i) That their monthly (or other periodic) benefit amounts will not be affected by the plan's termination; or (ii) Explaining how their monthly (or other periodic) benefit amounts will be affected under plan provisions); and (9) Extinguishment of guarantee. (c) Spin-off/termination transactions. § 4041.24 Notices of plan benefits. (a) Notice requirement. (b) Contents of notice. (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 (5) The information in paragraphs (c) through (e) of this section, as applicable. (c) Benefits of persons in pay status. (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 (3) The amount and date of any increase or decrease in the benefit scheduled to occur (or that has already occurred) after the proposed termination date and an explanation of the increase or decrease, including, where applicable, a reference to the pertinent plan provision. (d) Benefits of persons with valid elections or de minimis benefits. (1) The amount and form of the person's plan benefits payable as of the projected benefit starting date, and what that date is; (2) The information in paragraphs (c)(2) and (c)(3) of this section; (3) If the plan benefits will be paid in any form other than a lump sum and the age at which, or form in which, the plan benefits will be paid differs from the normal retirement benefit— (i) The age or form stated in the plan; and (ii) The age or form adjustment factors; and (4) If the plan benefits will be paid in a lump sum— (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 95-6, 1995-1 C.B. 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 (vi) A statement that the applicable interest rate may change before the distribution date. (e) Benefits of all other persons not in pay status. (1) The amount and form of the person's plan benefits payable at normal retirement age in any one form permitted under the plan; (2) Any alternative benefit forms, including those payable to a beneficiary upon the person's death either before or after benefits commence; (3) If the person is or may become entitled to a benefit that would be payable before normal retirement age, the amount and form of benefit that would be payable at the earliest benefit commencement date (or, if more than one such form is payable at the earliest benefit commencement date, any one of those forms) and whether the benefit commencing on such date would be subject to future reduction; and (4) If the plan benefits may be paid in a lump sum, the information in paragraph (d)(4) of this section. (f) Spin-off/termination transactions. § 4041.25 Standard termination notice. (a) Notice requirement. (1) One hundred-eighty (180) days after the proposed termination date; or (2) Sixty (60) days before making any distribution governed by section 4041(b) of ERISA and this part. (b) Change of proposed termination date. (c) Request for IRS determination letter. [62 FR 60428, Nov. 7, 1997, as amended at 90 FR 39328, Aug. 15, 2025] § 4041.26 PBGC review of standard termination notice. (a) Review period In general. (2) Extension of review period. (b) If standard termination notice is incomplete For purposes of timely filing. (i) The 180th day after the proposed termination date; or (ii) The 30th day after the date of the PBGC notice that the filing was incomplete. (2) For purposes of PBGC review period. (c) Additional information Deadline for providing additional information. (2) Effect on termination proceeding. (i) The number of days remaining in the review period; or (ii) Five regular business days. § 4041.27 Notice of annuity information. (a) Notice requirement In general. (2) Spin-off/termination transactions. (b) Content of notice. (1) Identity of insurers. (2) Change in identity of insurers. (3) State guaranty association coverage information. (i) That once the plan distributes a benefit in the form of an annuity purchased from an insurance company, the insurance company takes over the responsibility for paying that benefit; (ii) That all states, the District of Columbia, and the Commonwealth of Puerto Rico have established “guaranty associations” to protect policy holders in the event of an insurance company's financial failure; (iii) That a guaranty association is responsible for all, part, or none of the annuity if the insurance company cannot pay; (iv) That each guaranty association has dollar limits on the extent of its guaranty coverage, along with a general description of the applicable dollar coverage limits; (v) That in most cases the policy holder is covered by the guaranty association for the state where he or she lives at the time the insurance company fails to pay; and (vi) How to obtain the addresses and telephone numbers of guaranty association offices from the PBGC (as described in the applicable forms and instructions package). (c) Where insurer(s) not known Extension of deadline for notice. (2) Alternative NOIT information. (i) Irrevocable commitments (annuity contracts) may be purchased from an insurer to provide some or all of the benefits under the plan; (ii) The insurer or insurers have not yet been identified; and (iii) Affected parties will be notified at a later date (but no later than 45 days before the distribution date) of the name and address of the insurer or insurers from whom (if known), or (if not) from among whom, the plan administrator intends to purchase irrevocable commitments (annuity contracts). (d) Supplemental notice. (1) Deadline for supplemental notice. (2) Content of supplemental notice. (i) The identity-of-insurer information in paragraph (b)(1) of this section; (ii) The information regarding change of identity of insurer(s) in paragraph (b)(2) of this section; and (iii) Unless the state guaranty association coverage information in paragraph (b)(3) of this section was previously provided to the affected party, such information and the extinguishment-of-guarantee information in § 4041.23(b)(9). § 4041.28 Closeout of plan. (a) Distribution deadline In general. (i) 180 days after the expiration of the PBGC's 60-day (or extended) review period under § 4041.26(a); or (ii) If the plan administrator meets the requirements of § 4041.25(c), 120 days after receipt of a favorable determination from the IRS. (2) Revocation of notice of noncompliance. (3) Missing participants and beneficiaries. (b) Assets insufficient to satisfy plan benefits. (c) Method of distribution In general. (2) Lump sum calculations. (i) Calculating the present value of plan benefits that may be provided in a form other than by purchase of an irrevocable commitment from an insurer (e.g., in selecting the interest rate(s) to be used to value a lump sum distribution); and (ii) Determining whether plan benefits will be paid in such other form. (3) Selection of insurer. (4) Participating annuity contracts. (i) Is not taken into account in determining the amount of residual assets; and (ii) Is not paid from residual assets allocable to participants. (5) Missing participants. (d) Provision of annuity contract. (1) Either the plan administrator or the insurer must, within 30 days after it is available, provide each participant and beneficiary with a copy of the annuity contract or certificate showing the insurer's name and address and clearly reflecting the insurer's obligation to provide the participant's or beneficiary's plan benefits; and (2) If such a contract or certificate is not provided to the participant or beneficiary by the date on which the post-distribution certification is required to be filed in order to avoid the assessment of penalties under § 4041.29(b), the plan administrator must, no later than that date, provide the participant and beneficiary with a notice that includes— (i) A statement that the obligation for providing the participant's or beneficiary's plan benefits has transferred to the insurer; (ii) The name and address of the insurer; (iii) The name, address, and telephone number of the person designated by the insurer to answer questions concerning the annuity; and (iv) A statement that the participant or beneficiary will receive from the plan administrator or insurer a copy of the annuity contract or a certificate showing the insurer's name and address and clearly reflecting the insurer's obligation to provide the participant's or beneficiary's plan benefits. [62 FR 60428, Nov. 7, 1997, as amended at 82 FR 60818, Dec. 22, 2017] § 4041.29 Post-distribution certification. (a) Filing requirement. (1) Within 30 days after the last distribution date for any affected party, file with PBGC a post-distribution certification (PBGC Form 501), completed in accordance with the instructions thereto; or (2)(i) Within 30 days after the last distribution date for any affected party, certify to PBGC, in the manner prescribed in the instructions to PBGC Form 501, that the plan assets have been distributed as required, and (ii) Within 60 days after the last distribution date for any affected party, file a post-distribution certification (PBGC Form 501), completed in accordance with the instructions thereto. (b) Penalty considerations. [85 FR 6060, Feb. 4, 2020, as amended at 90 FR 39328, Aug. 15, 2025] § 4041.30 Requests for deadline extensions. (a) In general. (1) The length of the delay; and (2) Whether ordinary business care and prudence in attempting to meet the deadline is exercised. (b) Time of extension request. (c) IRS determination letter requests. (d) Statutory deadlines not extendable. (1) Pre-distribution deadlines. (ii) Waive the requirement in § 4041.24(a) that the notice of plan benefits be issued by the time the plan administrator files the standard termination notice with the PBGC; or (2) Post-distribution deadlines. [62 FR 60428, Nov. 7, 1997, as amended at 85 FR 6061, Feb. 4, 2020] § 4041.31 Notice of noncompliance. (a) Failure to meet pre-distribution requirements In general. (i) The plan administrator failed to issue the notice of intent to terminate to all affected parties (other than the PBGC) in accordance with § 4041.23; (ii) The plan administrator failed to issue notices of plan benefits to all affected parties entitled to plan benefits in accordance with § 4041.24; (iii) The plan administrator failed to file the standard termination notice in accordance with § 4041.25; (iv) As of the distribution date proposed in the standard termination notice, plan assets will not be sufficient to satisfy all plan benefits under the plan; or (v) In the case of a spin-off/termination transaction (as described in § 4041.23(c)), the plan administrator failed to issue any notice required by § 4041.23(c), § 4041.24(f), or § 4041.27(a)(2) in accordance with such section. (2) Interests of participants. (3) Continuing authority. (b) Failure to meet distribution requirements In general. (2) Criteria. (i) The nature and extent of the failure to satisfy a requirement of § 4041.28(a) or (c); (ii) Any corrective action taken by the plan administrator; and (iii) The interests of participants and beneficiaries. (3) Late distributions. (c) Correction of errors. (1) The PBGC determines that the plan administrator acted in good faith in connection with the error; (2) The plan administrator corrects the error no later than— (i) In the case of an error in the notice of plan benefits under § 4041.24, the latest date an election notice may be provided to the person; or (ii) In any other case, as soon as practicable after the plan administrator knows or should know of the error, or by any later date specified by the PBGC; and (3) The PBGC determines that the delay in providing the correct information will not substantially harm any person. (d) Reconsideration. (e) Consequences of notice of noncompliance Effect on termination. (2) Effect on plan administration. (i) Upon expiration of the period during which reconsideration may be requested or, if earlier, at the time the plan administrator decides not to request reconsideration; or (ii) If reconsideration is requested, upon PBGC issuance of a decision on reconsideration upholding the notice of noncompliance. (3) Revocation of notice of noncompliance. (f) If no notice of noncompliance is issued. (1) The plan administrator files a standard termination notice under § 4041.25 and the PBGC does not issue a notice of noncompliance pursuant to § 4041.31(a); and (2) The plan administrator files a post-distribution certification under § 4041.29 and the PBGC does not issue a notice of noncompliance pursuant to § 4041.31(b). (g) Notice to affected parties. Subpart C—Distress Termination Process § 4041.41 Requirements for a distress termination. (a) Distress requirements. (1) The plan administrator issues a notice of intent to terminate to each affected party in accordance with § 4041.43 at least 60 days and (except with PBGC approval) not more than 90 days before the proposed termination date; (2) The plan administrator files a distress termination notice with the PBGC in accordance with § 4041.45 no later than 120 days after the proposed termination date; and (3) The PBGC determines that each contributing sponsor and each member of its controlled group satisfy one of the distress criteria set forth in paragraph (c) of this section. (b) Effect of failure to satisfy requirements. (2)(i) The PBGC may, upon its own motion, waive any requirement with respect to notices to be filed with the PBGC under paragraph (a)(1) or (a)(2) of this section if the PBGC believes that it will be less costly or administratively burdensome to the PBGC to do so. The PBGC will not entertain requests for waivers under this paragraph. (ii) Notwithstanding any other provision of this part, the PBGC retains the authority in any case to initiate a plan termination in accordance with the provisions of section 4042 of ERISA. (c) Distress criteria. (1) Liquidation. (i) A person has filed or had filed against it a petition seeking liquidation in a case under title 11, United States Code, or under a similar federal law or law of a State or political subdivision of a State, or a case described in paragraph (e)(2) of this section has been converted to such a case; and (ii) The case has not been dismissed. (2) Reorganization. (i) As of the proposed termination date, a person has filed or had filed against it a petition seeking reorganization in a case under title 11, United States Code, or under a similar law of a state or a political subdivision of a state, or a case described in paragraph (e)(1) of this section has been converted to such a case; (ii) As of the proposed termination date, the case has not been dismissed; (iii) The person notifies the PBGC of any request to the bankruptcy court (or other appropriate court in a case under such similar law of a state or a political subdivision of a state) for approval of the plan termination by concurrently filing with the PBGC a copy of the motion requesting court approval, including any documents submitted in support of the request; and (iv) The bankruptcy court or 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 reorganization process and approves the plan termination. (3) Inability to continue in business. (4) Unreasonably burdensome pension costs. (d) Non-duplicative efforts. (i) Will normally enter an appearance to request that the court make specific findings as to whether the contributing sponsor or controlled group member meets the distress test in paragraph (c)(3) of this section, or state that it is unable to make such findings; (ii) Will provide the court with any information it has that may be germane to the court's ruling; (iii) Will, if the person has requested, or later requests, a determination by the PBGC under paragraph (c)(3) of this section, defer action on the request until the court makes its determination; and (iv) Will be bound by a final and non-appealable order of the court. (2) If a person requests a determination by the PBGC under paragraph (c)(3) of this section, the PBGC determines that the distress criterion is not met, and the person thereafter requests approval of the plan termination by a court, as described in paragraph (c)(2) of this section, the PBGC will advise the court of its determination and make its administrative record available to the court. (e) Non-recognition of certain actions. (f) Requests for deadline extensions. (1) Pre-distribution deadlines. (2) Post-distribution deadlines. § 4041.42 Administration of plan during termination process. (a) General rule. (b) Prohibitions after issuing notice of intent to terminate. (1) Distribute plan assets pursuant to, or (except as required by this part) take any other actions to implement, the termination of the plan; (2) Pay benefits attributable to employer contributions, other than death benefits, in any form other than as an annuity; or (3) Purchase irrevocable commitments to provide benefits from an insurer. (c) Limitation on benefit payments on or after proposed termination date. (d) Failure to qualify for distress termination. (1) The prohibitions in paragraph (b) of this section, other than those in paragraph (b)(1), will cease to apply— (i) Upon expiration of the period during which reconsideration may be requested under §§ 4041.44(e) and 4041.46(e) or, if earlier, at the time the plan administrator decides not to request reconsideration; or (ii) If reconsideration is requested, upon PBGC issuance of its decision on reconsideration. (2) Any benefits that were not paid pursuant to paragraph (c) of this section will be due and payable as of the effective date of the PBGC's determination, together with interest from the date (or dates) on which the unpaid amounts were originally due until the date on which they are paid in full at the rate or rates prescribed under § 4022.81(c)(3) of this chapter. (e) Effect of subsequent insufficiency. [62 FR 60428, Nov. 7, 1997, as amended at 63 FR 29355, May 29, 1998] § 4041.43 Notice of intent to terminate. (a) General rules. (2) The plan administrator must issue the notice of intent to terminate to all affected parties other than the PBGC at or before the time he or she files the notice with the PBGC. (3) The notice to affected parties other than the PBGC must contain all of the information specified in paragraph (b) of this section. (4) The notice to the PBGC must be filed on PBGC Form 600, Distress Termination, Notice of Intent to Terminate, completed in accordance with the instructions thereto. (5) 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 date a trustee is appointed for the plan pursuant to section 4042(c) of ERISA (or, in the case of a plan that distributes assets pursuant to § 4041.50, the distribution date). (b) Contents of notice to affected parties other than the PBGC. (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 (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). (c) Spin-off/termination transactions. § 4041.44 PBGC review of notice of intent to terminate. (a) General. (1) Will determine whether the notice was issued in compliance with § 4041.43; and (2) Will advise the plan administrator of its determination, in accordance with paragraph (b) or (c) of this section, no later than the proposed termination date specified in the notice. (b) Tentative finding of compliance. (1) The PBGC has made a tentative determination of compliance; (2) The distress termination proceeding may continue; and (3) After reviewing the distress termination notice filed pursuant to § 4041.45, the PBGC will make final, or reverse, this tentative determination. (c) Finding of noncompliance. (1) That the PBGC has determined that the notice of intent to terminate was not properly issued; and (2) That the proposed distress termination is null and void and the plan is an ongoing plan. (d) Information on need to institute section 4042 proceedings. (1) A notice of intent to terminate indicates that benefits currently in pay status (or that should be in pay status) are not being paid or that this is likely to occur within the 180-day period following the issuance of the notice of intent to terminate; (2) The PBGC issues a determination under paragraph (c) of this section; or (3) The PBGC has any reason to believe that it may be necessary or appropriate to institute proceedings under section 4042 of ERISA. (e) Reconsideration of finding of noncompliance. (f) Notice to affected parties. § 4041.45 Distress termination notice. (a) General rule. (b) Participant and benefit information Plan insufficient for guaranteed benefits. (i) 120 days after the proposed termination date, or (ii) 30 days after receipt of the PBGC's determination, pursuant to § 4041.46(b), that the requirements for a distress termination have been satisfied. (2) Plan sufficient for guaranteed benefits or benefit liabilities. (3) Effect of failure to provide information. (c) Additional information. § 4041.46 PBGC determination of compliance with requirements for distress termination. (a) General. (b) Qualifying termination. (c) Non-qualifying termination. (2) If the only basis for the PBGC's determination described in paragraph (c)(1) of this section is that the distress termination notice is incomplete, the PBGC will advise the plan administrator of the missing item(s) of information and that the information must be filed with the PBGC no later than the 120th day after the proposed termination date or the 30th day after the date of the PBGC's notice of its determination, whichever is later. (d) Reconsideration of determination of non-qualification. (e) Notice to affected parties. § 4041.47 PBGC determination of plan sufficiency/insufficiency. (a) General. (b) Insufficiency for guaranteed benefits. (1) The plan administrator must continue to administer the plan under the restrictions imposed by § 4041.42; and (2) The termination will be completed under section 4042 of ERISA. (c) Sufficiency for guaranteed benefits or benefit liabilities. (1) To issue notices of benefit distribution in accordance with § 4041.48; (2) To close out the plan in accordance with § 4041.50; (3) To file a timely post-distribution certification with the PBGC in accordance with § 4041.50(b); and (4) That either the plan administrator or the contributing sponsor must preserve and maintain plan records in accordance with § 4041.5. (d) Alternative treatment of majority owner's benefit. (1) Is valid only if the conditions in § 4041.21(b)(2)(i) through (v) are met (except that, in the case of a plan that does not distribute assets pursuant to § 4041.50, the majority owner may make the election and the spouse may consent any time on or after the date of issuance of the first notice of intent to terminate); and— (2) Is subject to the PBGC's approval if the election— (i) Is made after the termination date; and (ii) Would result in the PBGC determining that the plan is sufficient for guaranteed benefits under paragraph (c). [62 FR 60428, Nov. 7, 1997, as amended at 90 FR 39328, Aug. 15, 2025] § 4041.48 Sufficient plans; notice requirements. (a) Notices of benefit distribution. (1) The deadline for issuing the notices of benefit distribution is the 60th day after receipt of the distribution notice; and (2) With respect to the information described in § 4041.24 (b) through (e), the term “plan benefits” is replaced with “title IV benefits” and the term “proposed termination date” is replaced with “termination date”. (b) Certification to PBGC. (c) Notice of annuity information In general. (i) An affected party whose title IV benefits will be distributed in the form of a nonconsensual lump sum; and (ii) The PBGC. (2) Spin-off/termination transactions. (3) Selection of different insurer. (4) Content of notice. (i) The identity-of-insurer information in § 4041.27(b)(1); (ii) The information regarding change in identity of insurer(s) in § 4041.27(b)(2); and (iii) Unless the state guaranty coverage information in § 4041.27(b)(3) was previously provided to the affected party, such information and the extinguishment-of-guaranty information in § 4041.23(b)(9) (replacing the term “plan benefits” with “title IV benefits”). (5) Deadline for notice. (d) Request for IRS determination letter. § 4041.49 Verification of plan sufficiency prior to closeout. (a) General rule. i.e., (b) Subsequent insufficiency for guaranteed benefits. (1) PBGC concurrence with finding. (i) Issue the plan administrator a notice of inability to determine sufficiency in accordance with § 4041.47(b); and (ii) Require the plan administrator to submit a new valuation, certified to by an enrolled actuary, of the benefit liabilities and guaranteed benefits under the plan, valued in accordance with §§ 4044.41 through 4044.58 of this chapter as of the date of the plan administrator's notice to the PBGC. (2) PBGC non-concurrence with finding. (c) Subsequent insufficiency for benefit liabilities. (d) Finding by PBGC of subsequent insufficiency. (e) Restrictions upon finding of subsequent insufficiency. [62 FR 60428, Nov. 7, 1997, as amended at 89 FR 48299, June 6, 2024] § 4041.50 Closeout of plan. If a plan administrator receives a distribution notice from the PBGC pursuant to § 4041.47 and neither the plan administrator nor the PBGC makes the finding described in § 4041.49(b) or (d), the plan administrator must distribute plan assets in accordance with § 4041.28 and file a post-distribution certification in accordance with § 4041.29, except that— (a) The term “plan benefits” is replaced with “title IV benefits”; (b) For purposes of applying the distribution deadline in § 4041.28(a)(1)(i), the phrase “after the expiration of the PBGC's 60-day (or extended) review period under § 4041.26(a)” is replaced with “the day on which the plan administrator completes the issuance of the notices of benefit distribution pursuant to § 4041.48(a)”; and (c) For purposes of applying the distribution deadline in § 4041.28(a)(1)(ii), the phrase “the requirements of § 4041.25(c)” is replaced with “the requirements of § 4041.48(d)”. § 4041.51 Disclosure of information by plan administrator in distress termination. (a) Request for Information In general. (2) Requirements. (i) Be in writing to the plan administrator; (ii) State the name of the plan and that the request is for information submitted to PBGC with respect to the application for a distress termination of the plan; (iii) State the name of the person making the request for information and such person's relationship to the plan (e.g., plan participant), and that such relationship meets the definition of affected party under § 4001.2 of this chapter; and (iv) Be signed by the person making the request. (b) Response by Plan Administrator Information. (2) Timing of response. (3) Deferral of due date. (4) Supplemental responses. (5) Confidential information. (ii) A plan administrator that has received a request under paragraph (a) of this section may seek a court order under which confidential information described in section 552(b) of title 5, United States Code— (A) Will be disclosed only to authorized representatives (within the meaning of section 4041(c)(2)(D)(iv) of ERISA) that agree to ensure the confidentiality of such information, and, (B) Will not be disclosed to other affected parties. (6) Reasonable fees. [73 FR 68337, Nov. 18, 2008]