§ 4281.43. Notice of insolvency.
353 words·~2 min read·
/us/cfr/t29/s§ 4281.43·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Requirement of notice. The plan sponsor of a plan that determines that the plan is insolvent in the current plan year or is expected to be insolvent in the next plan year must file with PBGC a notice of insolvency containing the information described in § 4281.44(a) and issue to plan participants and beneficiaries a notice of insolvency containing the information described in § 4281.44(b). Once notices of insolvency with respect to a plan have been provided as required, no notice of insolvency need be provided with respect to the plan for any subsequent year. A notice of insolvency may be combined with a notice of insolvency benefit level under § 4281.45 for the same plan year.
(b)When to provide notice.
(1)Except as provided in paragraph (b)(2) of this section, the plan sponsor must file or issue the notices of insolvency under paragraph
(a)of this section by the later of---
(i)Ninety
(90)days before the beginning of the insolvency year; or
(ii)Thirty
(30)days after the date the insolvency determination is made.
(2)The plan sponsor may deliver the notices of insolvency under paragraph
(a)of this section to participants and beneficiaries in pay status concurrently with the first benefit payment made after the date the insolvency determination is made.
(c)Method of issuance to participants and beneficiaries. The issuance of the notice of insolvency to participants and beneficiaries must be made by one of the following methods---
(1)A method permitted under the rules in subpart B of part 4000 of this chapter.
(2)For participants and beneficiaries, other than those in pay status or reasonably expected to enter pay status during the insolvency year for which the notice is given, and other than alternate payees, the plan sponsor may post the notice at participants' work sites or publish the notice in a union newsletter or in a newspaper of general circulation in the area or areas where participants reside. Except with respect to an alternate payee, notice to a participant is deemed notice to that participant's beneficiary or beneficiaries. \[84 FR 18726, May 2, 2019\]