Guidance Document Database

A plan document’s provision allowing for reversion of residual plan assets to the plan sponsor was invalid and therefore residual assets were required to be distributed to participants.

PBGC suspended the processing of a plan termination following receipt of a letter from a union that the termination of the plan violated the terms of a collective bargaining agreement.

The sponsor of a multiemployer plan, other than a plan that primarily covers employees in the building and construction industry, may adopt any of the statutory allocation methods and any of the modifications set forth in §§ 4211.12 and 4211.13, without PBGC’s approval. PBGC will not opine on whether such adoption is consistent with trustees’ fiduciary duties.

Addresses the method of calculating the withdrawal liability of a purchaser of the assets of an unrelated contributing employer.

Regards a statutory provision under which a contributing employer to a multiemployer plan that sells its assets to an unrelated buyer does not withdraw from the plan if (among other things) the buyer posts a bond or escrow for 5 years and the sales contract makes the seller secondarily liable if the buyer withdraws during the 5 plan years after the sale. Addresses whether that exception to withdrawal applies if the buyer initially posts a bond for only the first two years.

PBGC did not issue a premium refund for plan that it found was not terminated.

Pharmacist is a professional individual for purposes of the Professional Service Employer plan exemption.

Plan termination date agreed to by PBGC and the company was after participants had constructive notice of termination .

Addresses the special partial withdrawal rule for the retail food industry, and the meaning of “retail food industry.”

Professional service employer plans and individual account plans are excluded from coverage.

A profit-sharing benefit in the plan is nonforfeitable and a pension benefit because the plan states it may be paid as an annuity. Because PBGC guarantees and pays the benefit as an annuity, it won’t be paid in a lump sum if the plan is insufficient.

Addresses the determination of withdrawal liability and the procedure to dispute withdrawal liability.

Plan does not meet the Professional Service Employer plan exemption. Plan is covered under Title IV because number of active participants exceeds 25.

Discusses the difference between a multiemployer plan and a multiple employer plan and the termination provisions applicable to the latter.

This opinion letter declines to provide an opinion on the meaning of “substantially all” for the purposes of determining whether a substantially all mass withdrawal has occurred.

Addresses bond waivers and withdrawal liability and how regulations do not apply to the liquidation bond upon seller’s liquidation.

Addresses the calculation of guaranteed benefits; PBGC measures benefits using plan factors at date of plan termination.

Regards a statutory provision under which a contributing employer to a multiemployer plan does not withdraw from the plan because it ceases to exist due to a change in organizational form if there is no interruption in the employer's contributions or obligation to contribute; addresses whether that exception to withdrawal applies to an employer that sells its assets where the purchaser takes over the seller's name, plant, and employees.

A plan maintained by a company under contract to provide services for a Federal agency does not meet the Governmental plan coverage exemption.

$20 minimum in the regulation is not subject to actuarial adjustment for the participant’s age at the time the benefit started.

Addresses whether a corporation that has an obligation to contribute to a multiemployer plan withdraws from the plan if the corporation's parent sells its shares.

Fully insured plans are required to pay premiums.

Plan is not exempt from coverage under Title IV because of Canadian participants.

Addresses whether a union decertification can cause a withdrawal.

Addresses (1) how withdrawal liability should be assessed when the contributing employer is a partnership, and (2) whether an employer continues to perform work of the type and jurisdiction covered by a collective bargaining agreement for purposes of determining whether a withdrawal has occurred.