Guidance Document Database

Under presumptive method, if a plan is fully funded because the value of plan assets never falls below liabilities, the plan would record a zero change in the value of unfunded vested benefits despite fluctuations in unfunded vested benefits.

Addresses the relevance of events occurring after a plan’s reallocation record date on the reallocation liability calculation.

Plans that are tax-qualified under IRC 401(a) are covered by Title IV. Plans funded by flexible annuity policies may or may not be designed to achieve a defined benefit objective.

Addresses calculation of partial withdrawal credit using the "modified presumptive method" where contributions are averaged over a 10-year period.

A PBGC premium must be paid for a participant in a plan even though no contributions for that participant to the plan are required because of a floor offset arrangement.

Participation in a plan maintained by more than one employer, some of which are not governmental entities, precludes the application of the Governmental plan exemption.

Conditions under which PBGC would allow a company to restore its pension plan after filing a notice to terminate.

Addresses how to reduce withdrawal liability for liability already assessed for a previous partial withdrawal. PBGC subsequently adopted a rule addressing the issue. (See 29 CFR part 4206.)

Plan meets the Nonresident Alien plan coverage exemption. All plan participants and records regarding plan located in Hong Kong.

PBGC will not insure annuities purchased by a terminated multiemployer plan and PBGC is not authorized to pay benefits when a non-insolvent multiemployer plan terminates.

Plan meets the Governmental plan coverage exemption.

Plan meets the Church plan coverage exemption.

A plan amendment that preserves a defined benefit does not allow a plan to fit under the individual account exemption from coverage.

Involuntary termination requirements in section 4042(a) do not apply to voluntary terminations under section 4041.

Addresses abatement when a contributing employer withdraws and then acquires a division of a company that contributions to the same plan.

Individual account plan is exempt from coverage.

A fully insured plan is covered under Title IV and must pay premiums to PBGC.

A plan document’s provision allowing for reversion of residual plan assets to the plan sponsor was invalid and therefore residual assets were required to be distributed to participants.

PBGC suspended the processing of a plan termination following receipt of a letter from a union that the termination of the plan violated the terms of a collective bargaining agreement.

The sponsor of a multiemployer plan, other than a plan that primarily covers employees in the building and construction industry, may adopt any of the statutory allocation methods and any of the modifications set forth in §§ 4211.12 and 4211.13, without PBGC’s approval. PBGC will not opine on whether such adoption is consistent with trustees’ fiduciary duties.

Addresses the method of calculating the withdrawal liability of a purchaser of the assets of an unrelated contributing employer.

Regards a statutory provision under which a contributing employer to a multiemployer plan that sells its assets to an unrelated buyer does not withdraw from the plan if (among other things) the buyer posts a bond or escrow for 5 years and the sales contract makes the seller secondarily liable if the buyer withdraws during the 5 plan years after the sale. Addresses whether that exception to withdrawal applies if the buyer initially posts a bond for only the first two years.

PBGC did not issue a premium refund for plan that it found was not terminated.

Pharmacist is a professional individual for purposes of the Professional Service Employer plan exemption.

Plan termination date agreed to by PBGC and the company was after participants had constructive notice of termination .