Opinion letters database

Section 4062(e) of ERISA is clear that it refers to participants who "are separated from employment." Therefore, PBGC will be closing this case.

The place of filing of employer liability liens should be the same as where notice of federal tax liens is filed. For the sake of clarity, PBGC suggests making changes to local and Minnesota state laws to refer explicitly to PBGC's employer liability lien.

Substantial owner plans are not covered; even where a plan is covered, PBGC does not have authority to prevent plan amendments.

A plan under which benefits are computed in accordance with a specified formula is a defined benefit plan and is covered.

Amendment of plan, to change it from a defined benefit plan to a defined contribution plan, is treated as a plan termination.

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

Plan did not timely submit information and did not demonstrate reasonable cause for not timely filing the requisite notice; PBGC affirms the decision not to guarantee benefits because the reply was untimely.

PBGC concluded that a single employer’s closure of one of five plants, resulting in the separation of 3% of plan participants, does not constitute a plan termination under Title IV .

A plan sponsored by a political subdivision that has taxing power is a governmental plan and is not covered.

A plan under which benefits are computed in accordance with specified formula is a defined benefit plan and is covered. A reduction in benefits is a reportable event.

This letter discusses that the withdrawal from a multiemployer plan of a number of participating employers has no bearing on whether it constitutes a substantial employer, and for this reason alone, employers are not required to post security.

PBGC agreed that the plan effectively terminated on January 31, 1974, when the employer sold its assets, employees transferred, and benefit accruals and vesting ceased. Because the plan terminated before ERISA’s effective date and was fully funded, compliance with Title IV termination procedures was not required before distributing assets.

PBGC stated that while no distribution of plan assets may occur during the 90-day review period under section 4041(a), the plan administrator may pay necessary life insurance premiums during that period to maintain coverage until distribution, preferably on a prorated or short-term basis.

A plan that experienced a further reduction of participants after PBGC's tentative conclusion that the reduction of participants did not constitute a termination under Title IV and may or may not constitute grounds for PBGC to take action under Title IV.

PBGC does not believe a temporary benefit suspension is an insurable event; rather, it's a reportable event. PBGC can only pay benefits in the event of a full termination.

PBGC concluded that, because accruals and contributions had not ceased and no valid termination notice was filed, the plan had not terminated for Title IV purposes before July 31, 1975, and it therefore did not object to distributions due under the plan before that date.

Welfare plans are not covered.

Interpretation of "plan year" under ERISA sec. 3(39) to mean the fiscal year on which plan records are kept; clarification that plan administrator may elect the plan year so long as it is consistent with ERISA.

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

Plan terminated in August of 1974; Section 4082(b) does not authorize PBGC to pay guaranteed pension benefits under the circumstances of this case.

the term "active participants" in Section 4043(b)(3) does not include retirees, terminated employees with vested rights, disability retirees or active employees who, by reason of age and/or service, were ineligible to become participants in a pension 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.

A plan with both defined benefit and defined contribution features does not pay premiums for participants whose benefit is solely based on the defined contribution formula.

PBGC approval is not required before the proposed merger and transfer may be effected. The facts described constitute a "reportable event" and therefore must be reported to PBGC.

ERISA guarantees the benefits of non-citizen participants in covered plans, and they must be counted for premium purposes.