§ 4281.45 - Notice of insolvency benefit level.

§ 4281.45 Notices Notice of insolvency benefit level.

Cross Reference

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

(a) Requirement of notices. For each insolvency year, the plan sponsor shall issue notice. The plan sponsor of an insolvent plan must file with PBGC a notice of insolvency benefit level to the PBGC and to plan containing the information described in § 4281.46(a) and issue to plan payees (which, for purposes of this section, means participants and beneficiaries in pay status or reasonably expected to enter pay status during the insolvency year. The notices shall be delivered in the manner and within the time prescribed in this section and shall contain the ) a notice of insolvency benefit level containing the information described in § 4281.46. (b)

When delivered. The plan sponsor shall mail or otherwise deliver

in each of the following circumstances -

(1) Except as provided in paragraph (a)(2) of this section, for the initial insolvency year and for any insolvency year following the initial insolvency year, if there is a change in insolvency benefit level that affects plan payees generally, provide the notices of insolvency benefit level

no later than 60 days before the beginning of the insolvency year. A plan sponsor that determines under § 4041A.25(b) that the plan is or may be insolvent for a plan year shall mail or otherwise deliver the notices of insolvency benefit level by the later of 60

to PBGC and to plan payees.

(2) For any insolvency year following the initial insolvency year, if there is a change in the insolvency benefit level that affects only one plan payee or a class of plan payees but not plan payees generally (treating commencement of a person's benefits for this purpose as a change in the insolvency benefit level for that person), provide the notices of insolvency benefit level to PBGC and to each affected plan payee.

(b) Combined notices. The plan sponsor may combine a notice of insolvency benefit level under this section and a notice of insolvency under § 4281.43 for the same plan year.

(c) When to provide notice.

(1) Except as provided in paragraph (c)(2) of this section, the plan sponsor must provide the notices under this section by the later of -

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

or 60

; or

(ii) Thirty (30) days after the date

of

the

plan sponsor's determination under § 4041A.25(b).

(c) Method of issuance. The notices of insolvency benefit level shall be delivered to the PBGC and to plan

insolvency determination is made.

(2) The plan sponsor may deliver the notices required under this section to participants and beneficiaries in pay status or reasonably expected to enter pay status during the insolvency year for which the notice is given concurrently with the first benefit payment made after the date the insolvency determination is made.

(d) Method of issuance to participants and beneficiaries. The issuance of the notice of insolvency benefit level to participants and beneficiaries in pay status or reasonably expected to enter pay status during the insolvency year

. The PBGC applies the

for which the notice is given must be made by a method permitted under the rules in subpart B of part 4000 of this chapter

to determine permissible methods of issuance of the notice of insolvency benefit levels to interested parties

.

[61 84 FR 3411818726, July 1, 1996, as amended at 68 FR 61458, Oct. 28, 2003May 2, 2019]