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Pension Resource

29 C.F.R. § 4041.7

Challenges to plan termination under collective bargaining agreement.
CFR 1997 annual edition (revised as of 1997-07-01) · superseded Jul 1, 1998
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(a) Commitment to make plan sufficient
(1) General rule. At any time before a standard termination notice is filed with the PBGC, in order to enable the plan to terminate in that standard termination, a contributing sponsor or a member of a controlled group of a contributing sponsor may make a commitment to contribute any additional sums necessary to make the plan sufficient for all benefit liabilities. Any such commitment shall be treated as a plan asset for all purposes under this part. A sample commitment is included in the appendix to this part.
(2) Requirements for valid commitment. A commitment to make a plan sufficient for all benefit liabilities shall be valid for purposes of this part only if the commitment—
(i) Is made to the plan;
(ii) Is in writing, signed by the contributing sponsor and/or controlled group member(s); and
(iii) If the contributing sponsor or controlled group member is the subject of a bankruptcy liquidation or reorganization proceeding, as described in § 4041.3(e)(1) or (e)(2) of this part, is approved by the court before which the liquidation or reorganization proceeding is pending or is unconditionally guaranteed, by a person not in bankruptcy, to be met at or before the time distribution of assets is required in the standard termination.
(b) Alternative treatment of majority owner's benefit
(1) General rule. In order to facilitate the termination of the plan and distribution of assets in a standard termination, a majority owner may agree to forego receipt of all or part of his or her benefit until the benefit liabilities of all other plan participants have been satisfied.
(2) Requirements for valid agreement. Any agreement by a majority owner to an alternative treatment of his or her benefit is valid only if—
(i) The agreement is in writing;
(ii) In any case in which the total value of the benefit (determined in accordance with § 4041.6(b) of this part) is greater than $3,500, the spouse, if any, of the majority owner consents, in writing, to the alternative treatment of the benefit; and
(iii) The agreement is not inconsistent with a qualified domestic relations order (as defined in section 206(d)(3) of ERISA).
29 C.F.R. § 4041.7 — Challenges to plan termination under collective bargaining agreement. · CFR 1997 annual edition (revised as of 1997-07-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4041.7&asof=1995-01-04 · printed Oct 16, 2026
On this page
  • (a) Commitment to make plan sufficient
  • (b) Alternative treatment of majority owner's benefit
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, 2006CFR 2005 annual edition (revised as of 2005-07-01) run 127View · Redline (sign in)
Jul 1, 2006currenteCFR editorial change effective 2017-01-01 run 2View · Redline (sign in)
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