29 CFR Part 4041A — Termination of Multiemployer Plans

PART 4041A—TERMINATION OF MULTIEMPLOYER PLANS Authority: 29 U.S.C. 1302(b)(3), 1341a, 1431, 1441. Source: 61 FR 34052, July 1, 1996, unless otherwise noted. Subpart A—General Provisions § 4041A.1 Purpose and scope. The purpose of this part is to establish rules for notifying the PBGC of the termination of a multiemployer plan and rules for the administration of multiemployer plans that have terminated by mass withdrawal. Subpart B prescribes the contents of and procedures for filing a Notice of Termination for a multiemployer plan. Subpart C prescribes basic duties of plan sponsors of mass-withdrawal-terminated plans. (Other duties are prescribed in part 4281 of this chapter.) Subpart D contains procedures for closing out sufficient plans. This part applies to terminated multiemployer plans covered by title IV of ERISA but, in the case of subparts C and D, only to plans terminated by mass withdrawal under section 4041A(a)(2) of ERISA (including plans created by partition pursuant to section 4233 of ERISA). § 4041A.2 Definitions. The following terms are defined in § 4001.2 of this chapter: annuity, ERISA, insurer, IRS, mass withdrawal, multiemployer plan, nonforfeitable benefit, PBGC, plan, and plan year. In addition, for purposes of this part: Actuarial valuation Available resources Benefits subject to reduction Financial assistance Insolvency benefit level Insolvency year Insolvent Nonguaranteed benefits Resource benefit level [61 FR 34052, July 1, 1996; 61 FR 36626, July 12, 1996, as amended at 84 FR 18722, May 2, 2019] § 4041A.3 Method and date of filing; where to file; computation of time; issuances to third parties. (a) Method and date of filing. (b) Where to file. (c) Computation of time. (d) Method and date of issuance. [68 FR 61354, Oct. 28, 2003] Subpart B—Notice of Termination § 4041A.11 Requirement of notice. (a) General. (b) Who must file. (c) When to file. (2) For a termination that results from a mass withdrawal, the notice must be filed with PBGC within thirty days after the last employer withdrew from the plan or thirty days after the first day of the first plan year for which no employer contributions were required under the plan, whichever is earlier. (d) How and where to file. [61 FR 34052, July 1, 1996, as amended at 80 FR 55745, Sept. 17, 2015; 84 FR 18722, May 2, 2019; 90 FR 39328, Aug. 15, 2025] § 4041A.12 Contents of notice. (a) Information to be contained in notice. www.pbgc.gov (b) Additional information. [84 FR 18722, May 2, 2019] Subpart C—Plan Sponsor Duties § 4041A.21 General rule. The plan sponsor of a multiemployer plan that terminates by mass withdrawal must 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 is responsible for the specific duties described in this subpart. [61 FR 34052, July 1, 1996, as amended at 84 FR 18722, May 2, 2019] § 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. § 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 PBGC determines that plan assets (exclusive of claims for withdrawal liability) are sufficient to satisfy all nonforfeitable benefits under the plan, the plan sponsor must determine, give notice of, and collect withdrawal liability (including the liability arising as a result of the mass withdrawal), in accordance with subpart C of part 4219 of this chapter and sections 4201 through 4225 of ERISA. [90 FR 39328, Aug. 15, 2025] § 4041A.24 Plan valuations and monitoring. (a) Annual valuation requirement. (1) Termination year valuation. (2) High-obligation valuations. (3) Low-obligation valuations. (4) Timing and filing. www.pbgc.gov (5) Exception for plans closing out. (b) Plan monitoring; benefit reductions Applicability. (2) Funding level determination. (i) Amend the plan to reduce benefits subject to reduction (if any) in accordance with the procedures in subpart C of part 4281 of this chapter to the extent necessary to ensure that the plan's assets are sufficient to discharge when due all of the plan's obligations with respect to nonforfeitable benefits or, if that result cannot be achieved, to the maximum extent possible; and (ii) If, after implementing the provisions of paragraph (b)(2)(i) of this section, the plan's assets are insufficient to discharge when due all of the plan's obligations with respect to nonforfeitable benefits, make determinations of plan solvency in accordance with § 4041A.25. (3) Notices of benefit reduction. (c) Alternative method of compliance Applicability. (i) The plan is receiving financial assistance from PBGC for the plan year following the plan year for which an actuarial valuation is required under paragraph (a) of this section. (ii) The present value of the plan's nonforfeitable benefits does not exceed $50 million according to the most recent actuarial valuation under paragraph (a) of this section. (2) Alternative compliance requirements. (i) The plan sponsor files with PBGC the information in paragraph (c)(3) of this section within the time required for filing the actuarial valuation under paragraph (a)(4) of this section; and (ii) If, within 90 days after the plan sponsor makes the filing described in paragraph (c)(2)(i) of this section, PBGC requests other information reasonably required to determine the plan's assets and liabilities, the plan sponsor files such other information within 60 days after PBGC's request. (3) Information to be provided. (i) The most recent summary plan description of the plan or the date the document was previously filed with PBGC. (ii) The most recent actuarial valuation of the plan or the date the document was previously filed with PBGC. (iii) Information reasonably necessary for PBGC to prepare an actuarial valuation as specified in the valuation instructions on PBGC's website ( www.pbgc.gov [84 FR 18723, May 2, 2019] § 4041A.25 Periodic determinations of plan solvency. (a) Annual insolvency determination. (1) For a plan that had no benefits subject to reduction when it terminated, the plan year the plan terminated; or (2) For a plan that eliminated benefits subject to reduction by amendment after termination, the plan year in which the amendment that eliminated all (or all remaining) benefits subject to reduction is effective. (b) Other determination of insolvency. (c) Benefit suspensions. (d) Insolvency notices. [61 FR 34052, July 1, 1996, as amended at 80 FR 55745, Sept. 17, 2015; 84 FR 18723, May 2, 2019] § 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. § 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. Subpart D—Closeout of Sufficient Plans § 4041A.41 General rule. If a plan's assets, excluding any claim of the plan for unpaid withdrawal liability, are sufficient to satisfy all obligations for nonforfeitable benefits provided under the plan, the plan sponsor may close out the plan in accordance with this subpart by distributing plan assets in full satisfaction of all nonforfeitable benefits under the plan. § 4041A.42 Method of distribution. (a) In general. (b) Missing participants and beneficiaries. [61 FR 34052, July 1, 1996, as amended at 82 FR 60818, Dec. 22, 2017] § 4041A.43 Benefit forms. (a) General rule. (b) Exceptions. (1) The present value of the participant's entire nonforfeitable benefit, determined using the interest assumption under §§ 4044.41 through 4044.58, does not exceed the dollar amount specified in section 203(e)(1) of ERISA. (2) The payment is for death benefits provided under the plan. (3) The participant elects an alternative form of distribution under paragraph (c) of this section. (c) Alternative forms of distribution. [61 FR 34052, July 1, 1996, as amended at 63 FR 38306, July 16, 1998; 88 FR 76664, Nov. 7, 2023; 89 FR 48300, June 6, 2024] § 4041A.44 Cessation of withdrawal liability. The obligation of an employer to make payments of initial withdrawal liability and mass withdrawal liability shall cease on the date on which the plan's assets are distributed in full satisfaction of all nonforfeitable benefits provided by the plan.

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