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Pension Resource

29 C.F.R. § 4041.41

Requirements for a distress termination.
CFR 1997 annual edition (revised as of 1997-07-01) · superseded Jul 1, 1998
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(a) General rules.
(1) At least 60 days and no more than 90 days before the proposed termination date, the plan administrator shall issue to each person who is (as of the proposed termination date) an affected party a written notice of intent to terminate.
(2) The plan administrator shall issue the notice of intent to terminate to all affected parties other than the PBGC at or before the time he or she files the notice with the PBGC.
(3) The notice to affected parties other than the PBGC shall contain all of the information specified in paragraph (d) of this section.
(4) The notice to the PBGC shall be filed on PBGC Form 600, Distress Termination, Notice of Intent to Terminate, completed in accordance with the instructions thereto.
(b) Discovery of other affected parties. Notwithstanding the provisions of paragraphs (a)(1) and (a)(2) of this section, if the plan administrator discovers additional affected parties after the expiration of the time period specified in paragraphs (a)(1) or (a)(2) of this section, the failure to issue the notice of intent to terminate to such parties within the specified time periods will not cause the notice to be untimely under paragraph (a) of this section if the plan administrator could not reasonably have been expected to know of the additional affected parties and if he or she promptly issues the notice to each additional affected party.
(c) Issuance
(1) Method. The plan administrator shall issue the notice of intent to terminate individually to each affected party. The notice to the PBGC shall be filed in accordance with § 4041.9. The notice to each of the other affected parties shall be either hand delivered or delivered by first-class mail or courier service directed to the affected party's last known address.
(2) When issued. The notice of intent to terminate is deemed issued to the PBGC on the date on which it is filed and to any other affected party on the date on which it is handed to the affected party or deposited with a mail or courier service (as evidenced by a postmark or written receipt).
(d) Contents of notice to affected parties other than the PBGC. The plan administrator shall include in the notice of intent to terminate to each affected party other than the PBGC all of the following information:
(1) The name of the plan and of the contributing sponsor;
(2) The employer identification number (“EIN”) of the contributing sponsor and the plan number (“PN”); if there is no EIN or PN, the notice shall so state;
(3) The name, address, and telephone number of the person who may be contacted by an affected party with questions concerning the plan's termination;
(4) A statement that the plan administrator expects to terminate the plan in a distress termination on a specified proposed termination date.
(5) A statement that benefit and service accruals will continue until the termination date or, if applicable, that benefit accruals were or will be frozen as of a specific date in accordance with section 204(h) of ERISA;
(6) A statement of whether plan assets are sufficient to pay all guaranteed benefits or all benefit liabilities;
(7) A brief description of what benefits are guaranteed by the PBGC ( e.g., if only a portion of the benefits are guaranteed because of the phase-in rule, this should be explained), and a statement that participants and beneficiaries also may receive a portion of the benefits to which each is entitled under the terms of the plan in excess of guaranteed benefits; and
(8) A statement, if applicable, that benefits may be subject to reduction because of the limitations on the amounts guaranteed by the PBGC or because plan assets are insufficient to pay for full benefits (pursuant to part 4022, subparts B and D, of this chapter) and that payments in excess of the amount guaranteed by the PBGC may be recouped by the PBGC (pursuant to part 4022, subpart E, of this chapter).
(e) Spin-off/termination transactions. In the case of a spin-off/termination transaction (as described in § 4041.21(f)), the plan administrator shall provide all participants and beneficiaries in the original plan who are also participants or beneficiaries in the ongoing plan (as of the proposed termination date) with a notice describing the transaction no later than the date on which the plan administrator completes the issuance of notices of intent to terminate under this section.
29 C.F.R. § 4041.41 — Requirements for a distress termination. · CFR 1997 annual edition (revised as of 1997-07-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4041.41&asof=1995-01-04 · printed Oct 16, 2026
On this page
  • (a) General rules.
  • (b) Discovery of other affected parties.
  • (c) Issuance
  • (d) Contents of notice to affected parties other than the PBGC.
  • (e) Spin-off/termination transactions.
Implements
ERISA § 4041 (29 U.S.C. § 1341) Termination of single-employer plans
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Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Jul 1, 1997Jun 30, 1998CFR 1997 annual edition (revised as of 1997-07-01) run 127View
Jul 1, 1998Jun 30, 2004CFR 2003 annual edition (revised as of 2003-07-01) run 127View · Redline (sign in)
Jul 1, 2004currenteCFR editorial change effective 2017-01-01 run 2View · Redline (sign in)
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