29 U.S.C. § 1341: Termination of single-employer plans

Except in the case of a termination for which proceedings are otherwise instituted by the corporation as provided in section 1342 of this title , a single-employer plan may be terminated only in a standard termination under subsection (b) or a distress termination under subsection (c). Not less than 60 days before the proposed termination date of a standard termination under subsection (b) or a distress termination under subsection (c), the plan administrator shall provide to each affected party (other than the corporation in the case of a standard termination) a written notice of intent to terminate stating that such termination is intended and the proposed termination date. The written notice shall include any related additional information required in regulations of the corporation. The corporation shall not proceed with a termination of a plan under this section if the termination would violate the terms and conditions of an existing collective bargaining agreement. Nothing in the preceding sentence shall be construed as limiting the authority of the corporation to institute proceedings to involuntarily terminate a plan under section 1342 of this title . the plan administrator provides the 60-day advance notice of intent to terminate to affected parties required under subsection (a)(2), the requirements of subparagraphs (A) and (B) of paragraph (2) are met, the corporation does not issue a notice of noncompliance under subparagraph (C) of paragraph (2), and when the final distribution of assets occurs, the plan is sufficient for benefit liabilities (determined as of the termination date). of the projected amount of the assets of the plan (as of a proposed date of final distribution of assets), of the actuarial present value (as of such date) of the benefit liabilities (determined as of the proposed termination date) under the plan, and that the plan is projected to be sufficient (as of such proposed date of final distribution) for such benefit liabilities, such information as the corporation may prescribe in regulations as necessary to enable the corporation to make determinations under subparagraph (C), and the information on which the enrolled actuary based the certification under clause (i) is accurate and complete, and the information provided to the corporation under clause (ii) is accurate and complete. specifying the amount of the benefit liabilities (if any) attributable to such person as of the proposed termination date and the benefit form on the basis of which such amount is determined, and the length of service, the age of the participant or beneficiary, wages, the assumptions, including the interest rate, and such other information as the corporation may require. it determines, based on the notice sent under paragraph (2)(A) of subsection (b), that there is reason to believe that the plan is not sufficient for benefit liabilities, it otherwise determines, on the basis of information provided by affected parties or otherwise obtained by the corporation, that there is reason to believe that the plan is not sufficient for benefit liabilities, or it determines that any other requirement of subparagraph (A) or (B) of this paragraph or of subsection (a)(2) has not been met, unless it further determines that the issuance of such notice would be inconsistent with the interests of participants and beneficiaries. The corporation and the plan administrator may agree to extend the 60-day period referred to in clause (i) by a written agreement signed by the corporation and the plan administrator before the expiration of the 60-day period. The 60-day period shall be extended as provided in the agreement and may be further extended by subsequent written agreements signed by the corporation and the plan administrator made before the expiration of a previously agreed upon extension of the 60-day period. Any extension may be made upon such terms and conditions (including the payment of benefits) as are agreed upon by the corporation and the plan administrator. the plan administrator has not received during such period a notice of noncompliance from the corporation under subparagraph (C), and when such final distribution occurs, the plan is sufficient for benefit liabilities (determined as of the termination date). purchase irrevocable commitments from an insurer to provide all benefit liabilities under the plan, or in accordance with the provisions of the plan and any applicable regulations, otherwise fully provide all benefit liabilities under the plan. A transfer of assets to the corporation in accordance with section 1350 of this title on behalf of a missing participant shall satisfy this subparagraph with respect to such participant. Within 30 days after the final distribution of assets is completed pursuant to the standard termination of the plan under this subsection, the plan administrator shall send a notice to the corporation certifying that the assets of the plan have been distributed in accordance with the provisions of subparagraph (A) so as to pay all benefit liabilities under the plan. Nothing in this section shall be construed to preclude the continued exercise by the corporation, after the termination date of a plan terminated in a standard termination under this subsection, of its authority under section 1303 of this title with respect to matters relating to the termination. A certification under paragraph (3)(B) shall not affect the corporation’s obligations under section 1322 of this title . there is 3 transaction or series of transactions which result in a person ceasing to be a member of a controlled group, and 3 So in original. The word “a” probably should appear. such person immediately before the transaction or series of transactions maintained a single-employer plan which is a defined benefit plan which is fully funded, has an outstanding senior unsecured debt instrument which is rated investment grade by each of the nationally recognized statistical rating organizations for corporate bonds that has issued a credit rating for such instrument, or if no such debt instrument of such employer has been rated by such an organization but 1 or more of such organizations has made an issuer credit rating for such employer, all such organizations which have so rated the employer have rated such employer investment grade, and the employer maintaining the plan after the transaction or series of transactions employs at least 20 percent of the employees located in the United States who were employed by such employer immediately before the transaction or series of transactions. in the case of a transaction or series of transactions which occur in a plan year beginning before January 1, 2008 , the funded current liability percentage determined under section 1082(d) of this title for the plan year is at least 100 percent, and in the case of a transaction or series of transactions which occur in a plan year beginning on or after such date, the funding target attainment percentage determined under section 1083 of this title is, as of the valuation date for such plan year, at least 100 percent. Subparagraph (A) shall not apply to any transaction or series of transactions if the plan referred to in subparagraph (A)(ii) is terminated under subsection (c) or section 1342 of this title after the close of the 2-year period beginning on the date on which the first such transaction occurs. the plan administrator provides the 60-day advance notice of intent to terminate to affected parties required under subsection (a)(2), the requirements of subparagraph (A) of paragraph (2) are met, and the corporation determines that the requirements of subparagraphs (B) and (D) of paragraph (2) are met. such information as the corporation may prescribe by regulation as necessary to make determinations under subparagraph (B) and paragraph (3); the amount (as of the proposed termination date and, if applicable, the proposed distribution date) of the current value of the assets of the plan, the actuarial present value (as of such dates) of the benefit liabilities under the plan, whether the plan is sufficient for benefit liabilities as of such dates, the actuarial present value (as of such dates) of benefits under the plan guaranteed under section 1322 of this title , and whether the plan is sufficient for guaranteed benefits as of such dates; the name and address of each participant and beneficiary under the plan as of such date, and such other information as shall be prescribed by the corporation by regulation as necessary to enable the corporation to be able to make payments to participants and beneficiaries as required under section 1322(c) of this title ; and the information on which the enrolled actuary based the certifications under clause (ii) is accurate and complete, and the information provided to the corporation under clauses (i) and (iii) is accurate and complete. such person has filed or has had filed against such person, as of the proposed termination date, a petition seeking liquidation in a case under title 11 or under any similar Federal law or law of a State or political subdivision of a State (or a case described in clause (ii) filed by or against such person has been converted, as of such date, to a case in which liquidation is sought), and such case has not, as of the proposed termination date, been dismissed. such person has filed, or has had filed against such person, as of the proposed termination date, a petition seeking reorganization in a case under title 11 or under any similar law of a State or political subdivision of a State (or a case described in clause (i) filed by or against such person has been converted, as of such date, to such a case in which reorganization is sought), such case has not, as of the proposed termination date, been dismissed, such person timely submits to the corporation any request for the approval of the bankruptcy court (or other appropriate court in a case under such similar law of a State or political subdivision) of the plan termination, and the bankruptcy court (or such other appropriate court) determines that, unless the plan is terminated, such person will be unable to pay all its debts pursuant to a plan of reorganization and will be unable to continue in business outside the chapter 11 reorganization process and approves the termination. unless a distress termination occurs, such person will be unable to pay such person’s debts when due and will be unable to continue in business, or the costs of providing pension coverage have become unreasonably burdensome to such person, solely as a result of a decline of such person’s workforce covered as participants under all single-employer plans of which such person is a contributing sponsor. The corporation shall notify the plan administrator as soon as practicable of its determinations made pursuant to subparagraph (B). receipt of a request from the affected party for the information; or the provision of new information to the corporation relating to a previous request. The plan administrator shall not provide information under clause (i) in a form that includes any information that may directly or indirectly be associated with, or otherwise identify, an individual participant or beneficiary. A court may limit disclosure under this subparagraph of confidential information described in section 552(b) of title 5 to any authorized representative of the participants or beneficiaries that agrees to ensure the confidentiality of such information. The corporation may prescribe the form and manner of the provision of information under this subparagraph, which shall include delivery in written, electronic, or other appropriate form to the extent that such form is reasonably accessible to individuals to whom the information is required to be provided. A plan administrator may charge a reasonable fee for any information provided under this subparagraph in other than electronic form. For purposes of this subparagraph, the term “authorized representative” means any employee organization representing participants in the pension plan. determine that the plan is sufficient for guaranteed benefits (as of the termination date) or that the corporation is unable to make such determination on the basis of information made available to the corporation, determine that the plan is sufficient for benefit liabilities (as of the termination date) or that the corporation is unable to make such determination on the basis of information made available to the corporation, and notify the plan administrator of the determinations made pursuant to this subparagraph as soon as practicable. In any case in which the corporation determines that the plan is sufficient for benefit liabilities, the plan administrator shall proceed to distribute the plan’s assets, and make certification to the corporation with respect to such distribution, in the manner described in subsection (b)(3), and shall take such other actions as may be appropriate to carry out the termination of the plan. In any case in which the corporation determines that the plan is sufficient for guaranteed benefits, but further determines that it is unable to determine that the plan is sufficient for benefit liabilities on the basis of the information made available to it, the plan administrator shall proceed to distribute the plan’s assets in the manner described in subsection (b)(3), make certification to the corporation that the distribution has occurred, and take such actions as may be appropriate to carry out the termination of the plan. In any case in which the corporation determines that it is unable to determine that the plan is sufficient for guaranteed benefits on the basis of the information made available to it, the corporation shall commence proceedings in accordance with section 1342 of this title . If, after the plan administrator has begun to terminate the plan as authorized under subparagraph (B)(i), the plan administrator finds that the plan is unable, or will be unable, to pay benefit liabilities which are not benefits guaranteed by the corporation under section 1322 of this title , the plan administrator shall notify the corporation of such finding as soon as practicable thereafter. If, after the plan administrator has begun to terminate the plan as authorized by subparagraph (B)(i) or (ii), the plan administrator finds that the plan is unable, or will be unable, to pay all benefits under the plan which are guaranteed by the corporation under section 1322 of this title , the plan administrator shall notify the corporation of such finding as soon as practicable thereafter. If the corporation concurs in the finding of the plan administrator (or the corporation itself makes such a finding), the corporation shall institute appropriate proceedings under section 1342 of this title . meet the requirements of clause (ii) for the period commencing on the date on which the plan administrator provides a notice of distress termination to the corporation under subsection (a)(2) and ending on the date on which the plan administrator receives notification from the corporation of its determinations under subparagraph (A), and meet the requirements of clause (ii) commencing on the date on which the plan administrator or the corporation makes a finding under subparagraph (C)(ii). refrains from distributing assets or taking any other actions to carry out the proposed termination under this subsection, pays benefits attributable to employer contributions, other than death benefits, only in the form of an annuity, does not use plan assets to purchase irrevocable commitments to provide benefits from an insurer, and continues to pay all benefit liabilities under the plan, but, commencing on the proposed termination date, limits the payment of benefits under the plan to those benefits which are guaranteed by the corporation under section 1322 of this title or to which assets are required to be allocated under section 1344 of this title . A single-employer plan is sufficient for benefit liabilities if there is no amount of unfunded benefit liabilities under the plan. A single-employer plan is sufficient for guaranteed benefits if there is no amount of unfunded guaranteed benefits under the plan. The adoption of an amendment to a plan which causes the plan to become a plan described in section 1321(b)(1) of this title constitutes a termination of the plan. Such an amendment may take effect only after the plan satisfies the requirements for standard termination under subsection (b) or distress termination under subsection (c). The amendments made by this section [amending this section and section 1342 of this title ] shall apply to any plan termination under title IV of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1301 et seq.) with respect to which the notice of intent to terminate (or in the case of a termination by the Pension Benefit Guaranty Corporation, a notice of determination under section 4042 of such Act ( 29 U.S.C. 1342 )) occurs after the date of enactment of this Act [ Aug. 17, 2006 ]. If notice under section 4041(c)(2)(D) or 4042(c)(3) of the Employee Retirement Income Security Act of 1974 [ 29 U.S.C. 1341(c)(2)(D) , 1342(c)(3)] (as added by this section) would otherwise be required to be provided before the 90th day after the date of the enactment of this Act [ Aug. 17, 2006 ], such notice shall not be required to be provided until such 90th day.” notices of intent to terminate were filed with the Pension Benefit Guaranty Corporation under section 4041 of the Employee Retirement Income Security Act of 1974 [ 29 U.S.C. 1341 ] before such date, or proceedings were commenced under section 4042 of such Act [ 29 U.S.C. 1342 ] before such date. In the case of a single-employer plan termination for which a notice of intent to terminate was filed with the Pension Benefit Guaranty Corporation under section 4041 of the Employee Retirement Income Security Act of 1974 (as in effect before the amendments made by this title) [ 29 U.S.C. 1341 ] on or after January 1, 1986 , but before the date of the enactment of this Act [ Apr. 7, 1986 ], the amendments made by this title [see Short Title of 1986 Amendment note set out under section 1001 of this title ] shall apply with respect to such termination, as modified by paragraphs (2) and (3). the plan administrator provided notice to the participants in the plan regarding the termination in compliance with applicable regulations of the Pension Benefit Guaranty Corporation as in effect on the date of the notice, and the notice of intent to terminate provided to the Pension Benefit Guaranty Corporation in connection with the termination was filed with the Corporation not less than 10 days before the proposed date of termination specified in the notice. that the plan administrator wishes the termination to proceed as a standard termination under section 4041(b) of the Employee Retirement Income Security Act of 1974 (as amended by this title) [ 29 U.S.C. 1341(b) ] in accordance with subparagraph (B), that the plan administrator wishes the termination to proceed as a distress termination under section 4041(c) of such Act (as amended by this title) in accordance with subparagraph (C), or that the plan administrator wishes to stop the termination proceedings in accordance with subparagraph (D). In the case of a plan termination described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(i) and with respect to which a notice of sufficiency has not been issued by the Corporation before the date of the enactment of this Act, if, during the 90-day period commencing on the date of the notice required in subclause (II), all benefit commitments under the plan have been satisfied, the termination shall be treated as a standard termination under section 4041(b) of such Act (as amended by this title). In the case of a plan termination described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(i) and with respect to which a notice of sufficiency has not been issued by the Corporation before the date of the enactment of this Act, the Corporation shall make the determinations described in section 4041(c)(3)(A)(i) and (ii) (as amended by this title) and notify the plan administrator of such determinations as provided in section 4041(c)(3)(A)(iii) (as amended by this title). In the case of a plan termination described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(i) and with respect to which a notice of sufficiency has been issued by the Corporation before the date of the enactment of this Act, clause (i)(I) shall apply, except that the 90-day period referred to in clause (i)(I) shall begin on the date of the enactment of this Act. In the case of a plan termination described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(ii), if the requirements of section 4041(c)(2)(B) of such Act (as amended by this title) are met, the termination shall be treated as a distress termination under section 4041(c) of such Act (as amended by this title). Except as provided in clause (ii), in the case of a plan termination described in paragraph (1) with respect to which the Corporation has been provided the notification described in subparagraph (A)(iii), the termination shall not take effect. Clause (i) shall not apply with respect to a termination with respect to which the final distribution of assets has commenced before the date of the enactment of this Act unless, within 90 days after the date of the enactment of this Act, the plan has been restored in accordance with procedures issued by the Corporation pursuant to subsection (c). the plan could not otherwise, pursuant to the preceding provisions of this paragraph, terminate in a termination treated as a standard termination under section 4041(b) of the Employee Retirement Income Security Act of 1974 (as amended by this title), and the extension would result in a greater likelihood that benefit commitments under the plan would be paid in full, The Pension Benefit Guaranty Corporation may prescribe temporary procedures for purposes of carrying out the amendments made by this title [see Short Title of 1986 Amendment note set out under section 1001 of this title ] during the 180-day period beginning on the date described in subsection (a).” determines that the assets of the plan are sufficient for benefit commitments (within the meaning of section 4041(d)(1) of the Employee Retirement Income Security Act of 1974 (as amended by section 11007) [ 29 U.S.C. 1341(d)(1) ]) under the plan, and issues to the plan administrator a written notice setting forth the determination described in subparagraph (A). the filing was made before January 1, 1986 , and the Corporation has not issued a notice of sufficiency for such plan before the date of the enactment of this Act [ Apr. 7, 1986 ], or the filing is made on or after January 1, 1986 , and before 60 days after the date of the enactment of this Act and the Corporation has not issued a notice of sufficiency for such plan before the date of the enactment of this Act, and in the case of plans described in subparagraph (A)(i), before 15 days after the date of the enactment of this Act, or in any other case, before the later of 15 days after the date of the enactment of this Act or 45 days after the date of the filing of such notice. The Corporation shall consider and respond to such complaints not later than 90 days after the date on which the Corporation makes the determination described in paragraph (1)(A). The Corporation may hold informal hearings to expedite consideration of such complaints. Any such hearing shall be exempt from the requirements of chapter 5 of title 5, United States Code. Except as provided in subparagraph (B), the Corporation shall not issue any notice described in paragraph (1)(B) until 90 days after the date on which the Corporation makes the determination described in paragraph (1)(A). Except in the case of an acquisition, takeover, or leveraged buyout, the preceding provisions of this subsection shall not apply if the contributing sponsor demonstrates to the satisfaction of the Corporation that the contributing sponsor is experiencing substantial business hardship. For purposes of this subparagraph, a contributing sponsor shall be considered as experiencing substantial business hardship if the contributing sponsor has been operating, and can demonstrate that the contributing sponsor will continue to operate, at an economic loss.”