Brief Case
Pension Resource

29 C.F.R. § 4041.21

Requirements for a standard termination.
eCFR amendment effective 2025-09-26 · current · last amended by 90 FR 46348, Sept. 26, 2025
PrintCompare datesAsk AI about this sectionOfficial source ↗
Back to current
(a) Notice and distribution requirements. A standard termination is valid if the plan administrator—
(1) Issues a notice of intent to terminate to all affected parties (other than the PBGC) in accordance with § 4041.23;
(2) Issues notices of plan benefits to all affected parties entitled to plan benefits in accordance with § 4041.24;
(3) Files a standard termination notice with the PBGC in accordance with § 4041.25;
(4) Distributes the plan's assets in satisfaction of plan benefits in accordance with § 4041.28(a) and (c); and
(5) In the case of a spin-off/termination transaction (as defined in § 4041.23(c)), issues the notices required by § 4041.23(c), § 4041.24(f), and § 4041.27(a)(2) in accordance with such sections.
(b) Plan sufficiency
(1) Commitment to make plan sufficient. A contributing sponsor of a plan or any other member of the plan's controlled group may make a commitment to contribute any additional sums necessary to enable the plan to satisfy plan benefits in accordance with § 4041.28. A commitment will be valid only if—
(i) It is made to the plan;
(ii) It is in writing, signed by the contributing sponsor or controlled group member(s); and
(iii) In any case in which the person making the commitment is the subject of a bankruptcy liquidation or reorganization proceeding, as described in § 4041.41(c)(1) or (c)(2), the commitment is approved by the court before which the liquidation or reorganization proceeding is pending or a person not in bankruptcy unconditionally guarantees to meet the commitment at or before the time distribution of assets is required.
(2) Alternative treatment of majority owner's benefit. A majority owner may elect to forgo receipt of his or her plan benefits to the extent necessary to enable the plan to satisfy all other plan benefits in accordance with § 4041.28. Any such alternative treatment of the majority owner's plan benefits is valid only if—
(i) The majority owner's election is in writing;
(ii) In any case in which the plan would require the spouse of the majority owner to consent to distribution of the majority owner's receipt of his or her plan benefits in a form other than a qualified joint and survivor annuity, the spouse consents in writing to the election;
(iii) The majority owner makes the election and the spouse consents during the time period beginning with the date of issuance of the first notice of intent to terminate and ending with the date of the last distribution;
(iv) Neither the majority owner's election nor the spouse's consent is inconsistent with a qualified domestic relations order (as defined in section 206(d)(3) of ERISA); and
(v) In any case in which the majority owner has an option to acquire any outstanding interest in an organization, such interest will be considered as owned by such person only if the following requirements are met:
(A) The person has a 5 percent or more direct ownership interest; or
(B) Such person has been a member of the board of directors or officer of the plan sponsor, or a fiduciary of the plan for each of the 3 years immediately preceding the date of the plan termination.
Source credit, amendments & notes

[62 FR 60428, Nov. 7, 1997, as amended at 90 FR 39327, Aug. 15, 2025; 90 FR 46348, Sept. 26, 2025]

29 C.F.R. § 4041.21 — Requirements for a standard termination. · eCFR amendment effective 2025-09-26 · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4041.21&asof=2025-09-26 · printed Oct 16, 2026
On this page
  • (a) Notice and distribution requirements.
  • (b) Plan sufficiency
Implements
ERISA § 4041 (29 U.S.C. § 1341) Termination of single-employer plans
Cited by (code & regs)
Guidance addressing this section
PBGC
Final Rules
  • 90 FR 46348 Sep 26, 2025 — Miscellaneous Corrections, Clarifications, and Improvements; Correction (b)(2)
Also cited in 3 other documents
PBGC
Final Rules
Proposed Rules
  • 90 FR 6894Proposed Jan 21, 2025 — Miscellaneous Corrections, Clarifications, and Improvements Comments due Mar 24, 2025 (b)(2)(b)(2)(i)

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, 1998CFR 1997 annual edition (revised as of 1997-07-01) run 127View
Jul 1, 1998Aug 14, 2025eCFR editorial change effective 2017-01-01 run 26View · Redline (sign in)
Aug 15, 2025Sep 14, 2025eCFR amendment effective 2025-08-15 run 26View · Redline (sign in)
Sep 15, 2025Sep 25, 2025eCFR amendment effective 2025-09-15 run 2690 FR 39327, Aug. 15, 2025View · Redline (sign in)
Sep 26, 2025currenteCFR amendment effective 2025-09-26 run 290 FR 46348, Sept. 26, 2025View · Redline (sign in)
Provision-level history (blame)