Opinion letters database

PBGC regulations should control in cases where single employer plans merge into multiemployer plans. PBGC regulations should also control the benefit equivalence as to employees who remain in the single employer plan after a transfer of part of the assets and some participants to the multiemployer plan.

Bankruptcy does not affect PBGC's guarantee of basic benefits. The plan administrator must file a Notice of Intent to Terminate regulation, after which PBGC will evaluate the plan's assets and liabilities and determine how to proceed.

Transfer of plan assets doesn't constitute a termination under Title IV and § 4062(e) of the Act does not apply; no present or future liability under Title IV of the Act is incurred by the employer as a result of this cessation of contributions and transfer of assets.

A plan distribution must be in compliance with § 4044 regardless of whether the IRS has issued a determination letter regarding plan termination.

This proposed adoption of a new plan does not constitute a termination because accruals, vesting and contributions are subject to the minimum funding standards of ERISA, and because the adoption of provisions concerning assets from proposed actions would constitute a reportable event.

A plan maintained by a public agency or political subdivision which has been taken over from a private business is not covered.

An employer that contributes to a plan "maintains" it within the meaning of section 4062 of ERISA. If an employer is sole contributor to a plan, it is not a multiemployer plan and section 4082(c)(1) of ERISA delaying the effective date of the Act's guarantee provisions with respect to multiemployer plans is inapplicable.

PBGC found that the stated termination date appeared to have been selected to affect employer liability under Title IV. Because it could not make the findings required under ERISA § 4082(b) that the plans were not terminated to avoid liability or obtain PBGC-paid benefits, it could not pay benefits.

A plan whose trust is maintained in the Virgin Islands is not covered.

Addresses whether the described plan meets the definition of defined benefit plan covered by Title IV.

New plan's plan year began and ended on October 31, 1975, so a partial year's premium payment and submission of the annual report are required to be filed.

A subsidiary ceased participation in two controlled-group plans. PBGC concluded that under section 4001(b) that the events described likely did not constitute terminations, but stated that a definitive determination could not be made until issuance of regulations.

PBGC concluded that section 4041 requires notice only for covered plans terminating on or after September 2, 1974, and therefore does not apply to plans terminated before that effective date.

This letter discusses the liability provisions for terminated pension plans under Title IV of ERISA.

PBGC is unable to grant request that no penalty be levied against plans for late premium payments.

Plan is not a plan covered under Title IV of ERISA and as such, the U.S. District Court has no jurisdiction over the plan and its properties under sections 4041(g) and 4042 of ERISA.

A pharmacist is a professional individual, and a plan maintained by a pharmaceutical entity whose principal business is the sale of prescription drugs is a professional service employer plan exempt from coverage.

Covered plans are required to pay premiums, whether or not funded by the purchase of insurance or annuity contracts.

PBGC determines a plan’s termination date based on the facts and circumstances, placing significant weight on when contributions and benefit accruals cease, and concluded here that the plan terminated when accruals ended, despite later administrative steps.

The described plan is not an individual account plan exempt from coverage. Neither a plan amendment to reduce benefits nor cessation of contributions alter the plan’s covered status. Premiums are due until plan assets are distributed or until a trustee is appointed.

Explains how 4044(c) allocates post-termination changes in plan asset values between PBGC and the plan, depending on whether the plan is sufficient and whether a trustee has been appointed.

PBGC takes no position on whether. after a plan administrator files a notice of intent to terminate a plan, plan trustees may surrender participant life insurance policies for cash and hold the proceeds pending distribution, as this matter is governed by the plan document.

A plan without a written plan document is not covered.

A plan maintained by an employer whose principal business is providing actuarial services and that is owned or controlled by an actuary is a professional service employer plan and is not covered.

PBGC does not object to the four plan participants entitled to guaranteed benefits executing waivers of their guaranteed benefits and accepting the plan's proposed distributions.