Brief Case
Pension Resource

29 C.F.R. § 4043.23

Active participant reduction.
CFR 2016 annual edition (revised as of 2016-07-01) · superseded Jan 1, 2017
PrintCompare datesAsk AI about this sectionOfficial source ↗
Back to current
Historical text in effect Jul 1, 2016 through Dec 31, 2016. View current · Compare with current
(a) Reportable event. A reportable event occurs for a plan:
(1) Single-cause event. On the date in a plan year when, as a result of a single cause—such as a reorganization, the discontinuance of an operation, a natural disaster, a mass layoff, or an early retirement incentive program—the number of active participants is reduced to less than 80 percent of the number of active participants at the beginning of such plan year or less than 75 percent of the number of active participants at the beginning of the plan year preceding such plan year.
(2) Attrition event. At the end of a plan year if the number of active participants covered by the plan at the end of such plan year is less than 80 percent of the number of active participants at the beginning of such plan year, or less than 75 percent of the number of active participants at the beginning of the plan year preceding such plan year.
(b) Determination rules
(1) Determination dates. The number of active participants at the beginning of a plan year may be determined by using the number of active participants at the end of the previous plan year, and the number of active participants at the end of a plan year may be determined by using the number of active participants at the beginning of the next plan year.
(2) Active participant. “Active participant” means a participant who—
(i) Is receiving compensation for work performed;
(ii) Is on paid or unpaid leave granted for a reason other than a layoff;
(iii) Is laid off from work for a period of time that has lasted less than 30 days; or
(iv) Is absent from work due to a recurring reduction in employment that occurs at least annually.
(3) Employment relationship. The employment relationship referred to in this paragraph (b) is between the participant and all members of the plan's controlled group.
(c) Reductions due to cessations and withdrawals. For purposes of paragraph (a)(1) of this section, a reduction in the number of active participants is to be disregarded to the extent that it—
(1) Is attributable to an event described in ERISA section 4062(e) or 4063(a), and
(2) Is timely reported to PBGC under ERISA section 4063(a).
(d) Waivers
(1) Small plan. Notice under this section is waived if the plan had 100 or fewer participants for whom flat-rate premiums were payable for the plan year preceding the event year.
(2) Low-default-risk. Notice under this section is waived if each contributing sponsor of the plan and the highest level U.S. parent of each contributing sponsor are low-default-risk on the date of the event.
(3) Well-funded plan. Notice under this section is waived if the plan is in the well-funded plan safe harbor for the event year.
(4) Public company. Notice under this section is waived if any contributing sponsor of the plan before the transaction is a public company and the contributing sponsor timely files a SEC Form 8-K disclosing the event under an item of the Form 8-K other than under Item 2.02 (Results of Operations and Financial Condition) or in financial statements under Item 9.01 (Financial Statements and Exhibits).
(e) Extension—attrition event. For an event described in paragraph (a)(2) of this section, the notice date is extended until the premium due date for the plan year following the event year.
29 C.F.R. § 4043.23 — Active participant reduction. · CFR 2016 annual edition (revised as of 2016-07-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4043.23&asof=2016-07-01 · printed Oct 16, 2026
On this page
  • (a) Reportable event.
  • (b) Determination rules
  • (c) Reductions due to cessations and withdrawals.
  • (d) Waivers
  • (e) Extension—attrition event.
Implements
ERISA § 4043 (29 U.S.C. § 1343) Reportable events
Guidance addressing this section
PBGC
Opinion Letters
Final Rules
Proposed Rules
  • 84 FR 30666Proposed Jun 27, 2019 — Miscellaneous Corrections, Clarifications, and Improvements Comments due Aug 26, 2019 (a)(1)(a)(2)
Also cited in 4 other documents
PBGC
Proposed Rules
  • 91 FR 45739Proposed Jul 21, 2026 — Penalties for Failure To Provide Certain Notices or Other Material Information Comments due Sep 21, 2026
  • 78 FR 20039Proposed Apr 3, 2013 — Reportable Events and Certain Other Notification Requirements Comments due Jun 3, 2013
  • 75 FR 48283Proposed Aug 10, 2010 — Liability for Termination of Single-Employer Plans; Treatment of Substantial Cessation of Operations Comments due Oct 12, 2010
Final Rules
  • 80 FR 54980 Sep 11, 2015 — Reportable Events and Certain Other Notification Requirements

No court rulings in the library cite this provision yet.

No private letter rulings in the library cite this provision yet.

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, 2016CFR 2015 annual edition (revised as of 2015-07-01) run 127View · Redline (sign in)
Jul 1, 2016Dec 31, 2016CFR 2016 annual edition (revised as of 2016-07-01) run 127View · Redline (sign in)
Jan 1, 2017Feb 3, 2020eCFR amendment effective 2017-01-01 run 26View · Redline (sign in)
Feb 4, 2020Mar 4, 2020eCFR amendment effective 2020-02-04 run 26View · Redline (sign in)
Mar 5, 2020Jun 23, 2020eCFR amendment effective 2020-03-05 run 2685 FR 6061, Feb. 4, 2020View · Redline (sign in)
Jun 24, 2020currenteCFR editorial change effective 2020-06-24 run 285 FR 6061, Feb. 4, 2020View · Redline (sign in)
Provision-level history (blame)