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Pension Resource

29 C.F.R. § 4062.3

Amount and payment of section 4062(b) liability.
eCFR editorial change effective 2017-01-01 · current · last amended by 71 FR 34822, June 16, 2006
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(a) Amount of liability
(1) General rule. Except as provided in paragraph (a)(2) of this section, the amount of section 4062(b) liability is the total amount (as of the termination date) of the unfunded benefit liabilities (within the meaning of section 4001(a)(18) of ERISA) to all participants and beneficiaries under the plan, together with interest calculated from the termination date in accordance with § 4062.7.
(2) Special rule in case of subsequent finding of inability to pay guaranteed benefits. In any distress termination proceeding under section 4041(c) of ERISA and part 4041 of this chapter in which (as described in section 4041(c)(3)(C)(ii) of ERISA), after a determination that the plan is sufficient for benefit liabilities or for guaranteed benefits, the plan administrator finds that the plan is or will be insufficient for guaranteed benefits and the PBGC concurs with that finding, or the PBGC makes such a finding on its own initiative, actuarial present values shall be determined as of the date of the notice to, or the finding by, the PBGC of insufficiency for guaranteed benefits.
(b) Payment of liability. Section 4062(b) liability is due and payable as of the termination date, in cash or securities acceptable to the PBGC, except that, as provided in § 4062.9(c), the PBGC shall prescribe commercially reasonable terms for payment of so much of such liability as exceeds 30 percent of the collective net worth of persons subject to liability in connection with a plan termination. The PBGC may make alternative arrangements, as provided in § 4062.9(b).
Source credit, amendments & notes

[61 FR 34079, July 1, 1996, as amended at 71 FR 34822, June 16, 2006]

29 C.F.R. § 4062.3 — Amount and payment of section 4062(b) liability. · eCFR editorial change effective 2017-01-01 · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4062.3&asof=2015-01-05 · printed Oct 16, 2026
On this page
  • (a) Amount of liability
  • (b) Payment of liability.
Implements
ERISA § 4062 (29 U.S.C. § 1362) Liability for termination of single-employer plans under a distress termination or a termination by corporation
Guidance addressing this section

No documents are primarily about this section.

Also cited in 3 other documents
PBGC
Final Rules
  • 88 FR 44045 Jul 11, 2023 — Benefit Payments and Allocation of Assets
Proposed Rules
  • 84 FR 51494Proposed Sep 30, 2019 — Benefit Payments and Allocation of Assets Comments due Nov 29, 2019
  • 75 FR 48283Proposed Aug 10, 2010 — Liability for Termination of Single-Employer Plans; Treatment of Substantial Cessation of Operations Comments due Oct 12, 2010

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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, 2006CFR 2005 annual edition (revised as of 2005-07-01) run 127View
Jul 1, 2006Jun 30, 2007CFR 2006 annual edition (revised as of 2006-07-01) run 127View · Redline (sign in)
Jul 1, 2007currenteCFR editorial change effective 2017-01-01 run 271 FR 34822, June 16, 2006View · Redline (sign in)
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