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e-CFR data is current as of January 25, 2021

Title 29Subtitle BChapter XLSubchapter EPart 4043 → Subpart C


Title 29: Labor
PART 4043—REPORTABLE EVENTS AND CERTAIN OTHER NOTIFICATION REQUIREMENTS


Subpart C—Advance Notice of Reportable Events


Contents
§4043.61   Advance reporting filing obligation.
§4043.62   Change in contributing sponsor or controlled group.
§4043.63   Liquidation.
§4043.64   Extraordinary dividend or stock redemption.
§4043.65   Transfer of benefit liabilities.
§4043.66   Application for minimum funding waiver.
§4043.67   Loan default.
§4043.68   Insolvency or similar settlement.

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§4043.61   Advance reporting filing obligation.

(a) In general. Unless a waiver or extension applies with respect to the plan, each contributing sponsor of a plan is required to notify PBGC no later than 30 days before the effective date of a reportable event described in this subpart C if the contributing sponsor is subject to advance reporting for the reportable event. If there is a change in contributing sponsor, the responsibility for any failure to file or defective filing lies with the person who is the contributing sponsor of the plan on the notice date.

(b) Persons subject to advance reporting. A contributing sponsor of a plan is subject to the advance reporting requirement under paragraph (a) of this section for a reportable event if —

(1) On the notice date, neither the contributing sponsor nor any member of the plan's controlled group to which the event relates is a public company; and

(2) The aggregate unfunded vested benefits, determined in accordance with paragraph (c) of this section, are more than $50 million; and

(3) The aggregate value of plan assets, determined in accordance with paragraph (c) of this section, is less than 90 percent of the aggregate premium funding target, determined in accordance with paragraph (c) of this section.

(c) Funding determinations. For purposes of paragraph (b) of this section, the aggregate unfunded vested benefits, aggregate value of plan assets, and aggregate premium funding target are determined by aggregating the unfunded vested benefits, values of plan assets, and premium funding targets (respectively), as determined in accordance with part 4006 of this chapter for purposes of the variable-rate premium for the plan year preceding the effective date of the event, of plans maintained (on the notice date) by the contributing sponsor and any members of the contributing sponsor's controlled group, disregarding plans with no unfunded vested benefits (as so determined).

(d) Shortening of 30-day period. Pursuant to §4043.3(d), PBGC may, upon review of an advance notice, shorten the notice period to allow for an earlier effective date.

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§4043.62   Change in contributing sponsor or controlled group.

(a) Reportable event. Advance notice is required for a change in a plan's contributing sponsor or controlled group, as described in §4043.29(a).

(b) Waivers—(1) Small and mid-size plans. Notice under this section is waived with respect to a change of contributing sponsor if the transferred plan has fewer than 500 participants.

(2) De minimis 5-percent segment. Notice under this section is waived if the person or persons that will cease to be members of the plan's controlled group represent a de minimis 5-percent segment of the plan's old controlled group for the most recent fiscal year(s) ending on or before the effective date of the reportable event.

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§4043.63   Liquidation.

(a) Reportable event. Advance notice is required for a liquidation of a member of a plan's controlled group, as described in §4043.30.

(b) Waiver—de minimis 5-percent segment and ongoing plans. Notice under this section is waived if the person that liquidates is a de minimis 5-percent segment of the plan's controlled group for the most recent fiscal year(s) ending on or before the effective date of the reportable event, and each plan that was maintained by the liquidating member is maintained by another member of the plan's controlled group.

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§4043.64   Extraordinary dividend or stock redemption.

(a) Reportable event. Advance notice is required for a distribution by a member of a plan's controlled group, as described in §4043.31(a).

(b) Waiver—de minimis 5-percent segment. Notice under this section is waived if the person making the distribution is a de minimis 5-percent segment of the plan's controlled group for the most recent fiscal year(s) ending on or before the effective date of the reportable event.

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§4043.65   Transfer of benefit liabilities.

(a) Reportable event. Advance notice is required for a transfer of benefit liabilities, as described in §4043.32(a).

(b) Waivers—(1) Complete plan transfer. Notice under this section is waived if the transfer is a transfer of all of the transferor plan's benefit liabilities and assets to one other plan.

(2) Transfer of less than 3 percent of assets. Notice under this section is waived if the value of the assets being transferred—

(i) Equals the present value of the accrued benefits (whether or not vested) being transferred, using actuarial assumptions that comply with section 414(l) of the Code; and

(ii) In conjunction with other assets transferred during the same plan year, is less than 3 percent of the assets of the transferor plan as of at least one day in that year.

(3) Section 414(l) safe harbor. Notice under this section is waived if the benefit liabilities of 500 or fewer participants are transferred and the transfer complies with section 414(l) of the Code using the actuarial assumptions prescribed for valuing benefits in trusteed plans under §§4044.51 through 4044.57 of this chapter.

(4) Fully funded plans. Notice under this section is waived if the transfer complies with section 414(l) of the Code using reasonable actuarial assumptions and, after the transfer, the transferor and transferee plans are fully funded as determined in accordance with §§4044.51 through 4044.57 of this chapter and §4010.8(d)(1)(ii) of this chapter.

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§4043.66   Application for minimum funding waiver.

(a) Reportable event. Advance notice is required for an application for a minimum funding waiver, as described in §4043.33.

(b) Extension. The notice date is extended until 10 days after the reportable event has occurred.

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§4043.67   Loan default.

Advance notice is required for an acceleration of payment, a default, a waiver, or an agreement to an amendment with respect to a loan agreement described in §4043.34(a).

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§4043.68   Insolvency or similar settlement.

(a) Reportable event. Advance notice is required for an insolvency or similar settlement, as described in §4043.35.

(b) Extension. For a case or proceeding under §4043.35(a)(1) or (2) that is not commenced by a member of the plan's controlled group, the notice date is extended to 10 days after the commencement of the case or proceeding.

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