§ 4281.43 - Notice of insolvency.

§ 4281.43 Notices Notice of insolvency.

Cross Reference

Link to an amendment published at 84 FR 18726, May 2, 2019.

(a) Requirement of notices of insolvencynotice. A The plan sponsor of a plan that determines that the plan is , insolvent in the current plan year or is expected to be , insolvent for a in the next plan year shall must file with the PBGC PBGC a notice of insolvency containing the information described in § 4281.44(a) and issue to plan participants and beneficiaries notices a notice of insolvency containing the information described in § 4281.44(b). Once notices of insolvency have been filed with the PBGC and issued to plan participants and beneficiarieswith respect to a plan have been provided as required, no notice of insolvency needs to be issued for subsequent insolvency years. Notices shall be delivered in the manner and within the time prescribed in this section and shall contain the information described in § 4281.44.

(b) Notices of insolvency - when delivered. Except as provided in the next sentence, the plan sponsor shall mail or otherwise deliver the notices of insolvency no later than 30 days after the plan sponsor determines that the plan is or may be insolvent. However, the notice to plan

need be provided with respect to the plan for any subsequent year. A notice of insolvency may be combined with a notice of insolvency benefit level under § 4281.45 for the same plan year.

(b) When to provide notice.

(1) Except as provided in paragraph (b)(2) of this section, the plan sponsor must file or issue the notices of insolvency under paragraph (a) of this section by the later of -

(i) Ninety (90) days before the beginning of the insolvency year; or

(ii) Thirty (30) days after the date the insolvency determination is made.

(2) The plan sponsor may deliver the notices of insolvency under paragraph (a) of this section to participants and beneficiaries in pay status

may be delivered

concurrently with the first benefit payment made after the

determination of insolvency

date the insolvency determination is made.

(c) Notices Method of insolvency - method of issuance to interested parties. The PBGC applies the rules in subpart B of part 4000 of this chapter to determine permissible methods of participants and beneficiaries. The issuance of the notice of insolvency . In addition to the methods permitted under to participants and beneficiaries must be made by one of the following methods -

(1) A method permitted under the rules in subpart B of part 4000

, the plan sponsor may notify interested parties, other than participants and beneficiaries who are in pay status when the notice is required to be delivered, by posting the

of this chapter.

(2) For participants and beneficiaries, other than those in pay status or reasonably expected to enter pay status during the insolvency year for which the notice is given, and other than alternate payees, the plan sponsor may post the notice at participants' work sites or

publishing

publish the notice in a union newsletter or in a newspaper of general circulation in the area or areas where participants reside.

Notice to

Except with respect to an alternate payee, notice to a participant

shall be

is deemed notice to that participant's beneficiary or beneficiaries.

[61 84 FR 34118, July 1, 1996, as amended at 68 FR 61458, Oct. 28, 2003; 79 FR 30463, May 28, 2014; 80 FR 55745, Sept. 17, 201518726, May 2, 2019]