(a) General.
(1) The PBGC shall issue to the plan administrator a written notice of noncompliance, within the period prescribed by
§ 4041.25, whenever it makes one of the following determinations:
(i) A determination that the plan administrator failed to issue the notice of intent to terminate in accordance with
§ 4041.21.
(ii) A determination that the plan administrator failed to issue notices of plan benefits in accordance with
§§ 4041.22 and 4041.23.
(iii) A determination that the standard termination notice, or any supplemental notice, was not filed in accordance with
§ 4041.24.
(iv) A determination that, as of the proposed distribution date, plan assets will not be sufficient to satisfy all benefit liabilities under the plan.
(2) The PBGC shall base any determination described in
paragraph (a)(1) of this section on the information contained in the standard termination notice, including any supplemental submission under
§ 4041.25(d) and any supplemental notice under
§ 4041.24(b), or on information provided by any affected party or otherwise obtained by the PBGC.
(b) Effect of notice of noncompliance . A notice of noncompliance ends the standard termination proceeding, nullifies all actions taken to terminate the plan, and renders the plan an ongoing plan. The notice of noncompliance is effective upon the expiration of the period within which the plan administrator may request reconsideration pursuant to paragraph (c) of this section but, once a notice is issued, the plan administrator shall take no further action to terminate the plan (except by initiation of a new termination) unless and until the notice is revoked pursuant to a decision by the PBGC on reconsideration.
(c) Reconsideration of notice of noncompliance . A plan administrator may request reconsideration of a notice of noncompliance in accordance with the rules prescribed in part 4003, subpart C, of this chapter. Any request for reconsideration automatically stays the effectiveness of the notice of noncompliance until the PBGC issues its decision on reconsideration.
(d) Notice to affected parties— (1)
General rule. Upon a decision by the PBGC on reconsideration affirming the issuance of a notice of noncompliance (or, if earlier, upon the plan administrator's decision not to request reconsideration), the plan administrator shall notify the affected parties (other than the PBGC), and any persons who were provided notice under
§ 4041.21(f)), in writing that the plan is not going to terminate or, if applicable, that the termination was invalid but that a new notice of intent to terminate is being issued.
(2) Method of issuance. The notices shall be delivered by first-class mail or by hand to each person described in paragraph (d)(1) who is an employee organization or a participant or beneficiary who is then in pay status. The notices to other participants and beneficiaries shall be provided in any manner reasonably calculated to reach those participants and beneficiaries. Reasonable methods of notification include, but are not limited to, posting the notice at participants’ worksites or publishing the notice in an employee organization newsletter or newspaper of general circulation in the area or areas where participants and beneficiaries reside.
29 C.F.R. § 4041.26 — PBGC review of standard termination notice. · CFR 1997 annual edition (revised as of 1997-07-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4041.26&asof=1995-01-04 · printed Oct 16, 2026