Brief Case
Pension Resource

29 C.F.R. § 4043.27

Distribution to a substantial owner.
CFR 2016 annual edition (revised as of 2016-07-01) · superseded Jan 1, 2017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 when—
(1) There is a distribution to a substantial owner of a contributing sponsor of the plan;
(2) The total of all distributions made to the substantial owner within the one-year period ending with the date of such distribution exceeds $10,000;
(3) The distribution is not made by reason of the substantial owner's death;
(4) Immediately after the distribution, the plan has nonforfeitable benefits (as provided in § 4022.5 of this chapter) that are not funded; and
(5) Either—
(i) The sum of the values of all distributions to any one substantial owner within the one-year period ending with the date of the distribution is more than one percent of the end-of-year total amount of the plan's assets (as required to be reported on Schedule H or Schedule I to Form 5500) for each of the two plan years immediately preceding the event year, or
(ii) The sum of the values of all distributions to all substantial owners within the one-year period ending with the date of the distribution is more than five percent of the end-of-year total amount of the plan's assets (as required to be reported on Schedule H or Schedule I to Form 5500) for each of the two plan years immediately preceding the event year.
(b) Determination rules
(1) Valuation of distribution. The value of a distribution under this section is the sum of—
(i) The cash amounts actually received by the substantial owner;
(ii) The purchase price of any irrevocable commitment; and
(iii) The fair market value of any other assets distributed, determined as of the date of distribution to the substantial owner.
(2) Date of substantial owner distribution. The date of distribution to a substantial owner of a cash distribution is the date it is received by the substantial owner. The date of distribution to a substantial owner of an irrevocable commitment is the date on which the obligation to provide benefits passes from the plan to the insurer. The date of any other distribution to a substantial owner is the date when the plan relinquishes control over the assets transferred directly or indirectly to the substantial owner.
(3) Determination date. The determination of whether a participant is (or has been in the preceding 60 months) a substantial owner is made on the date when there has been a distribution that would be reportable under this section if made to a substantial owner.
(c) Alternative method of compliance—annuity. In the case of an annuity for a substantial owner, a filing that satisfies the requirements of this section with respect to any payment under the annuity and that discloses the period, the amount of the payment, and the duration of the annuity satisfies the requirements of this section with respect to all subsequent payments under the annuity.
(d) Waivers
(1) 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.
(2) Well-funded plan. Notice under this section is waived if the plan is in the well-funded plan safe harbor for the event year.
(3) 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).
29 C.F.R. § 4043.27 — Distribution to a substantial owner. · CFR 2016 annual edition (revised as of 2016-07-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4043.27&asof=2016-07-01 · printed Oct 16, 2026
On this page
  • (a) Reportable event.
  • (b) Determination rules
  • (c) Alternative method of compliance—annuity.
  • (d) Waivers
Implements
ERISA § 4043 (29 U.S.C. § 1343) Reportable events
Guidance addressing this section

No documents are primarily about this section.

Also cited in 3 other documents
PBGC
Final Rules
  • 85 FR 6046 Feb 4, 2020 — Miscellaneous Corrections, Clarifications, and Improvements (d)(3)
  • 80 FR 54980 Sep 11, 2015 — Reportable Events and Certain Other Notification Requirements
Proposed Rules
  • 78 FR 20039Proposed Apr 3, 2013 — Reportable Events and Certain Other Notification Requirements Comments due Jun 3, 2013

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 6062, Feb. 4, 2020View · Redline (sign in)
Jun 24, 2020currenteCFR editorial change effective 2020-06-24 run 285 FR 6062, Feb. 4, 2020View · Redline (sign in)
Provision-level history (blame)