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.

PBGC agrees that information submitted by plan, including the Notice of Intent to Terminate, establishes plan termination date.

PBGC does not have jurisdiction over the merger of welfare plans.

Discusses benefit guaranty and the maximum monthly guarantee at the time.

A Notice of Intent to Terminate not filed by the plan administrator is not valid under § 4041(a). Under the facts before PBGC, it is determining whether it should petition to terminate the plan involuntarily.

Contingent liability insurance program isn't currently available and couldn't be applicable to a termination occurring prior to 09/02/1979. PBGC's exercise of discretion to guarantee benefits upon plan termination is based on all the facts and circumstances, including the hardship participants would suffer absent guarantees, the cost to PBGC, and likelihood and manner of recovery of all or a significant portion of PBGC's outlay from employer liability payments.

PBGC guarantees payment of benefits to employees upon plan termination, not upon their employer's withdrawal from multiemployer plan. Also, PBGC does not guarantee benefits of plans that are not tax qualified.

Conversion from a defined benefit plan to an individual account plan/defined contribution plan is treated as a termination and is subject to the plan termination provisions of Section 4041.

An event may still be a "reportable event" under section 4043 of ERISA if the plan administrator does not know or have reason to know of such event until after the date of enactment. PBGC has taken the position that plan administrators need not report to PBGC events which occurred before September 2, 1974.

Amending a covered plan to change it to a defined contribution plan constitutes a plan termination, and the statutory provisions relating to a plan termination set forth in § 4041 apply.

The withdrawal by an employer does not constitute a reportable event and does not constitute a plan termination.

Discusses considerations PBGC would apply in determining whether parent-subsidiary group created a single plan or multiple separate plans managed under a single trust. PBGC would consider factors such as portability of pension credits and available assets to satisfy liabilities in a plan.

PBGC indicated that two plans were excluded from coverage under Title IV because one plan was an employee welfare plan and the other was an individual account plan.

Borrowing by participants against their policies in excess of the amount permitted to be borrowed by the terms of the plan would not result in the payment of benefits by PBGC for which the company would be liable upon plan termination.

Request for waiver of interest and penalty charges because of inability to meet premium payment requirements must be made by plan administrators.

PBGC has no authority to grant individual
extensions of premium filing due dates and therefore must deny client's extension request. PBGC has authority to waive late payment penalty charges, and client may submit a request for such a waiver with an appropriate demonstration of good cause.

PBGC needs more information because it appears that more premiums are owed and that the discontinuance of some of the firm's operations may have constituted a reportable event under § 4043(b)(3).

Plan administrator must allocate assets under 4044 to participant receiving early retirement benefits and may not allocate assets to participants whose benefit claims had been fully satisfied prior to termination of plan.

This letter addressed whether a plan terminated prior to effective date of Title IV. PBGC determined that for the purposes of Title IV, the plan did not terminate.

Addresses the difference between termination of a group of single employer plans under § 4041 and withdrawal under § 4063.

PBGC’s interpretation that in this case the employer maintains two separate plans including one for a subsidiary because of separate accounting for the benefit of distinct plan beneficiaries.

PBGC determined that because an arrangement was a group of single-employer plans, the withdrawal of a participating employer constituted a separate plan termination under section 4041 with respect to that employer’s portion of the plan.

Assets retained by the plan are subject to § 4044 allocation procedures.

PBGC indicates which benefits it guarantees and applies the phase-in benefit guarantee.

PBGC is precluded by § 4082(b) from guaranteeing benefits upon the termination of the plan.