PART 4245—DUTIES OF PLAN SPONSOR OF AN INSOLVENT PLAN Authority: 29 U.S.C. 1302(b)(3), 1341a, 1431, 1426(e). Source: 61 FR 34115, July 1, 1996, unless otherwise noted. § 4245.1 Purpose, scope, and filing and issuance rules. (a) Purpose and scope. (b) Filing and issuance rules Method of filing. (2) Method of issuance. (i) A method permitted under the rules in subpart B of part 4000 of this chapter. (ii) For interested parties other than participants and beneficiaries in pay status or reasonably expected to enter pay status during the insolvency year for which the notice is given, and other than alternate payees, the plan sponsor may post the notice at participants' work sites or publish the notice in a union newsletter or in a newspaper of general circulation in the area or areas where participants reside. Except with respect to an alternate payee, notice to a participant is deemed notice to that participant's beneficiary or beneficiaries. (3) Filing and issuance dates. (4) Where to file. (5) Computation of time. [84 FR 18724, May 2, 2019] § 4245.2 Definitions. The following terms are defined in § 4001.2 of this chapter: Employer, ERISA, IRS, multiemployer plan, nonforfeitable benefit, PBGC, person, 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 Interested parties (1) Employers required to contribute to the plan; (2) Employee organizations that, for collective bargaining purposes, represent plan participants employed by such employers; and (3) Plan participants and beneficiaries. Reasonably expected to enter pay status Resource benefit level [61 FR 34115, July 1, 1996, as amended at 84 FR 18724, May 2, 2019] § 4245.3 Notice of insolvency. (a) Requirement of notice. (b) When to provide notice. [84 FR 18724, May 2, 2019] § 4245.4 Contents of notice of insolvency. (a) Notice to PBGC. www.pbgc.gov (b) Notices to interested parties. (1) The information set forth in § 4281.44(b)(1) through (4) of this chapter. (2) The estimated total amount of annual benefit payments under the plan (determined without regard to the insolvency) for the insolvency year. (3) The estimated amount of the plan's available resources for the insolvency year. [84 FR 18724, May 2, 2019] § 4245.5 Notice of insolvency benefit level. (a) Requirement of notice. (1) For the initial insolvency year, provide the notices of insolvency benefit level to PBGC and to interested parties. (2) For any insolvency year following the initial insolvency year— (i) If there is a change in the insolvency benefit level that affects plan payees generally, provide the notices of insolvency benefit level to PBGC and to plan payees (which, for purposes of this section, means participants and beneficiaries in pay status or reasonably expected to enter pay status during the insolvency year). (ii) If there is a change in the insolvency benefit level that affects only one plan payee or a class of plan payees but not plan payees generally (treating commencement of a person's benefits for this purpose as a change in the insolvency benefit level for that person), provide the notices of insolvency benefit level to PBGC and to each affected plan payee. (b) Combined notices. (c) When to provide notice. [84 FR 18724, May 2, 2019] § 4245.6 Contents of notice of insolvency benefit level. (a) Notice to PBGC. www.pbgc.gov (b) Notices to interested parties other than participants and beneficiaries in or entering pay status. (1) The name of the plan. (2) The plan year for which the notice is issued. (3) The estimated amount of annual benefit payments under the plan (determined without regard to the insolvency) for the insolvency year. (4) The estimated amount of the plan's available resources for the insolvency year. (5) The amount of financial assistance, if any, requested from PBGC. (c) Notices to participants and beneficiaries in or entering pay status. [84 FR 18725, May 2, 2019] § 4245.7 Successor plan. The plan sponsor of a successor plan created by a partition order under § 4233.14 of this chapter must issue to participants and beneficiaries any notice required under the partition order and is not required to file or issue notices under § 4245.3 or § 4245.5. [84 FR 18725, May 2, 2019] § 4245.8 Financial assistance. (a) Application for financial assistance. (b) Actuarial valuations. [84 FR 18725, May 2, 2019, as amended at 90 FR 39329, Aug. 15, 2025]