Opinion letters database

This plan was terminated prior to the enactment of ERISA. Therefore, neither the vesting, funding, or insurance provisions of the law are applicable to the plan.

No requirement for a multiemployer plan that terminates prior to 1/1/1978 to notify PBGC and PBGC will only pay guaranteed benefits under Title IV pursuant to its discretionary authority if certain detailed findings are made.

Plan is a church plan within the meaning of
§ 414(e) of the Internal Revenue Code and thus not covered by Title IV. Accordingly, Plan is owed a refund of premiums.

Participants whose benefit is solely the product of defined contribution portion of plan not included when computing PBGC premiums.

Penalties and interest assessed by PBGC for the late payment of premiums due under section 4007 may be paid from multiemployer pension plan assets.

Determination that there is no successor plan relationship for purposes of §§ 4021(a) and 4022(b).

PBGC declined to restore a terminated plan under section 4047 where the employer sought restoration solely to spin off and terminate a portion of the plan, thereby substantially reducing participants and limiting the guarantee phase-in.

Plan has not met conditions for coverage since ERISA enacted; Title IV doesn’t apply to the termination of the plan. IRS position that the plan is not tax qualified and it failed to vest participants in accrued benefits.

Plan isn't a successor plan of sponsor's previous plan because the previous plan terminated, so the required continuity for successorship was broken. Thus, the Plan is subject to the guarantee limitations of § 4022(b)(1)(A) and the phase-in provisions of § 4022(b)(8).

Proposed amendment to permit employees to elect to receive a distribution of the current value of their frozen account balances in the Profit Sharing Plan in lieu of benefits under the Pension Plan would constitute a reportable event under § 4043(b)(2) if, when adopted, the benefit payable with respect to any participant under the Profit Sharing Plan has a lesser value than the benefit payable under the Pension Plan. Although the adoption of the proposed amendment must be reported, approval of the proposed amendment by PBGC is not required.

Discusses how the five-year phase-in rule impacts guarantee of certain recent benefit increases and that certain early retirement supplements are not guaranteed.

In merger transaction between two multiemployer plans, is there a reportable event, is notice required, and is a change in collective bargaining representative a certified change triggering an obligation under § 4235 to transfer assets.

Whether certain events which may occur as a result of collective bargaining between an employer and union would constitute a partial or complete withdrawal. An employer that temporarily ceases contributions during a labor dispute will not be considered to have withdrawn. However, this could change if the employer is determined to have permanently stopped contributions.

This letter examines whether a plan will constitute a successor plan for the purposes of Title IV of ERISA.

Funds contributed to a plan whether paid directly by the local union maintaining it or indirectly through deductions from membership dues are employer contributions. Therefore, the section 4021(b)(5) exclusion does not apply and the plan is covered.

Whether a union in its capacity as an employer may be liable upon termination of a plan.

Withdrawn: Obsolete. No longer applicable since the passage of MPPAA in 1980. (02/12/2026)

Plan administrator's failure to distribute plan assets upon termination violates ERISA provisions.

Categorization of plan

Premium payments, along with penalties and interest, may generally be paid from plan assets. If standard termination is completed before satisfaction of all premium liability, plan administrator may be personally liable.

Discussion of changes brought forth by MPPAA and how under MPPAA, a cessation of the obligation of all employers to contribute under a plan constitutes a withdrawal of all employers from the plan. Noted that if the union and employers in collective bargaining do not agree to continue their contribution obligation to the Plan, the employers will incur withdrawal liability to the Plan.

A plan that met the criteria for tax qualification for five years prior to its termination date was a covered plan at the time of termination.

PBGC did not guarantee benefits for a terminated plan, the termination of which was done in concert with the establishment of new retirement arrangements designed to provide substantially the same benefits.

This letter addresses whether any provision in Title IV of ERISA applies to a pension plan excluded from PBGC coverage.

A plan established or maintained by a labor union where all contributions are made by members and none are made by the union is exempt from coverage.

A plan that has both individual accounts and a defined benefit feature is covered.