Opinion letters database

A letter of credit may satisfy the bond or escrow requirement of § 4203(d)(3)(B)(ii).

PBGC has determined that the merger of the defined benefit plan into the individual account plan constitutes a termination of the defined benefit plan under § 4041A(a) and participants' nonforfeitable benefits under the defined benefit plan must be provided in accordance with Title IV.

Because over 50 percent of the Business's gross sales are derived from the sale of prescription drugs, and 51 percent of the Business's stock is owned by a licensed pharmacist, the exclusion from coverage for professional service employers under § 4021(b)(13) applies.

Discusses whether the sale of stock constitutes a withdrawal from a multiemployer plan and whether the sale of assets rule applies. An employer shall not be considered to have withdrawn solely because of a change in corporate structure.

Addresses the rules governing the transfer of assets from multiemployer plan to single-employer plan; addresses the withdrawal liability consequences of transferring assets to a single employer plan. Provides that transfer of assets must be in compliance with the multiemployer plan's terms.

Addresses the contribution periods used in calculating an employer’s allocable share of a multiemployer plan’s unfunded vested benefits for the last plan year ending before April 29, 1980. Allocations to the numerator are based on when obligation to contribute arose and not on when contributions are paid.

Discusses the definition of “employer” in the context of withdrawal liability and how it applies to a group of trades or businesses under common control. Indicates that there is joint and several liability for plan sponsors.

Provision for PBGC review in § 4231(c) is voluntary and provides a plan administrator with assurance that a proposed merger will not violate §§ 406(a) or 406(b)(2). PBGC must be given notice of the merger at least 120 days before the effective date of the merger and transaction must comply with § 4231(b).

Restoration of the Plan may be proper under § 4047. If multiple conditions listed in opinion letter are fulfilled, Plan may be restored to its earlier status.

PBGC's authorization of multiemployer plan's proposed distribution in full satisfaction of all nonforfeitable benefits under the Plan is not required. If a distribution is made in full satisfaction of all nonforfeitable benefits under the plan, plan must notify PBGC within 60 days thereafter, of the date of the distribution.

Discussion or what constitutes the building and
construction industry within the meaning of § § 4203(b) and 4208(d) for purpose of determining occurrence of a "withdrawal" from the plan.

Meaning of "the unfunded vested benefits attributable to employees of the employer" in § 4225(a) does not refer to the same amount as the UVB allocable to an employer, under § 4211.

Based on facts, no Title IV liability to PBGC by the subsidiary or the proposed purchaser of the subsidiary's stock, when stock is being purchased under Title IV in the event that one or more of the plans were to terminate subsequent to the closing date. There is potential Title IV liability in connection with the new plans it establishes for its
own active and former employees.

Validity of notice of intent to terminate discussed.

Discussion of rules governing partial withdrawals, including whether cessation of operations at a facility due to a shutdown will constitute a partial withdrawal.

No withdrawal liability solely as a result of a sale by a parent of stock of a subsidiary which was obligated to contribute to a multiemployer plan and continues such contributions after the sale.

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.

Because the principal business of each corporation whose employees are covered by the Plan is vending prescription drugs, and the stock of each corporation is owned by pharmacists or corporations owned by pharmacists, the exclusion from coverage for professional service employers under § 4021(b)(13) applies.

Discussion concerning definition of "employer" and circumstances relating to whether a complete or partial withdrawal occurred. A partial withdrawal occurs if there is a partial cessation of the employer's contribution obligation. Additionally, if certain entities are under the same common control they are considered the same employer under Title IV.

Plan sponsored by an entity that is not a governmental agency or instrumentality within the meaning of § 4021(b)(2) is not a governmental plan and thus is not excluded from coverage.

Reviews circumstances under which a plan administrator may pay benefits in a single installment.

Notice of Intent to Terminate is invalid where not issued by plan administrator. Company argued it was de facto plan administrator with authority to terminate, but Plan clearly identified Board of Administration as plan administrator.

Plan maintained by governmental instrumentality is a government plan and thus excluded from Title IV coverage.

Discussion of possible liability to the employer who sold its stock of a subsidiary which in turn will establish a new pension plan.

This letter addresses the calculation of guaranteed benefits. PBGC measures benefits using plan factors at date of plan termination.