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Pension Resource

29 C.F.R. § 4211.4

Contributions for purposes of the numerator and denominator of the allocation fractions.
eCFR amendment effective 2021-02-08 · current · last amended by 86 FR 1271, Jan. 8, 2021
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Amended effective Feb 8, 2021 by 86 FR 1271, Jan. 8, 2021. See what changed
(a) In general. Subject to paragraph (b) of this section, each of the allocation fractions used in the presumptive, modified presumptive and rolling-5 methods is based on contributions that certain employers have made to the plan for a 5-year period.
(1) The numerator of the allocation fraction, with respect to a withdrawing employer, is based on the “sum of the contributions required to be made” or the “total amount required to be contributed” by the employer for the specified period.
(2) The denominator of the allocation fraction is based on contributions that certain employers have made to the plan for a specified period.
(b) Disregarding surcharges and contribution increases. For each of the allocation fractions used in the presumptive, modified presumptive and rolling-5 methods in determining the allocation of unfunded vested benefits to an employer, a plan in endangered or critical status must disregard:
(1) Surcharge. Any surcharge under section 305(e)(7) of ERISA and section 432(e)(7) of the Code.
(2) Contribution increase. Any increase in the contribution rate or other increase in contribution requirements that goes into effect during plan years beginning after December 31, 2014, so that a plan may meet the requirements of a funding improvement plan under section 305(c) of ERISA and section 432(c) of the Code or a rehabilitation plan under section 305(e) of ERISA and 432(e) of the Code, except to the extent that one of the following exceptions applies pursuant to section 305(g)(3) or (4) of ERISA and section 432(g)(3) or (4) of the Code:
(i) The increases in contribution requirements are due to increased levels of work, employment, or periods for which compensation is provided.
(ii) The additional contributions are used to provide an increase in benefits, including an increase in future benefit accruals, permitted by section 305(d)(1)(B) or (f)(1)(B) of ERISA and section 432(d)(1)(B) or (f)(1)(B) of the Code.
(iii) The withdrawal occurs on or after the expiration date of the employer's collective bargaining agreement in effect in the plan year the plan is no longer in endangered or critical status, or, if earlier, the date as of which the employer renegotiates a contribution rate effective after the plan year the plan is no longer in endangered or critical status.
(c) Simplified methods. See §§ 4211.14 and 4211.15 for simplified methods of meeting the requirements of this section.
Source credit, amendments & notes

[86 FR 1271, Jan. 8, 2021]

29 C.F.R. § 4211.4 — Contributions for purposes of the numerator and denominator of the allocation fractions. · eCFR amendment effective 2021-02-08 · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4211.4 · printed Oct 16, 2026
On this page
  • (a) In general.
  • (b) Disregarding surcharges and contribution increases.
  • (c) Simplified methods.
Implements
ERISA § 4211 (29 U.S.C. § 1391) Methods for computing withdrawal liability
Cited by (code & regs)
Guidance addressing this section
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Also cited in 1 other documents
PBGC
Technical Updates
  • PBGC Tech. Update 10-3 — Simplified Methods for Applying the Requirement to Disregard Benefit Reductions in Determining Withdrawal Liability - Multiemployer Pension Plans - Pension Pro…

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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, 2009Jan 7, 2021eCFR amendment effective 2017-01-01 run 2673 FR 79635, Dec. 30, 2008View
Jan 8, 2021Feb 7, 2021eCFR amendment effective 2021-01-08 run 2673 FR 79635, Dec. 30, 2008View · Redline (sign in)
Feb 8, 2021currenteCFR amendment effective 2021-02-08 run 286 FR 1271, Jan. 8, 2021View · Redline (sign in)
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