---
kind: "section"
citation: "29 C.F.R. § 4041.47"
title: "29"
number: "4041.47"
heading: "PBGC determination of plan sufficiency/insufficiency."
url: "https://uscodex.org/cfr/29/4041.47"
---

# §4041.47. PBGC determination of plan sufficiency/insufficiency.

- (a) **General.** Upon receipt of participant and benefit information filed pursuant to § [4041.45 (b)(1)](/cfr/29/4041.45.md?p=b-1) or [(c)](/cfr/29/4041.45.md?p=b-c), the PBGC will determine the degree to which the plan is sufficient and notify the plan administrator in writing of its determination in accordance with paragraph [(b)](#b) or [(c)](#c) of this section.
- (b) **Insufficiency for guaranteed benefits.** If the PBGC finds that it is unable to determine that a plan is sufficient for guaranteed benefits, it will issue a “notice of inability to determine sufficiency” notifying the plan administrator of this finding and advising the plan administrator that—
  - (1) The plan administrator must continue to administer the plan under the restrictions imposed by [§ 4041.42](/cfr/29/4041.42.md); and
  - (2) The termination will be completed under [section 4042](/cfr/29/4042.md) of ERISA.
- (c) **Sufficiency for guaranteed benefits or benefit liabilities.** If the PBGC determines that a plan is sufficient for guaranteed benefits but not for benefit liabilities or is sufficient for benefit liabilities, the PBGC will issue to the plan administrator a distribution notice advising the plan administrator—
  - (1) To issue notices of benefit distribution in accordance with [§ 4041.48](/cfr/29/4041.48.md);
  - (2) To close out the plan in accordance with [§ 4041.50](/cfr/29/4041.50.md);
  - (3) To file a timely post-distribution certification with the PBGC in accordance with [§ 4041.50(b)](/cfr/29/4041.50.md?p=b); and
  - (4) That either the plan administrator or the contributing sponsor must preserve and maintain plan records in accordance with [§ 4041.5](/cfr/29/4041.5.md).
- (d) **Alternative treatment of majority owner's benefit.** A majority owner may elect to forgo receipt of all or part of his or her plan benefits in connection with a distress termination. Any such alternative treatment—
  - (1) Is valid only if the conditions in [§ 4041.21(b)(2)(i) through (v)](/cfr/29/4041.21.md?p=b-2-i..b-2-v) are met (except that, in the case of a plan that does not distribute assets pursuant to [§ 4041.50](/cfr/29/4041.50.md), the majority owner may make the election and the spouse may consent any time on or after the date of issuance of the first notice of intent to terminate); and—
  - (2) **Is subject to the PBGC's approval if the election—**
    - (i) Is made after the termination date; and
    - (ii) Would result in the PBGC determining that the plan is sufficient for guaranteed benefits under [paragraph (c)](#c).

## Notes

### Amendments

[62 FR 60428, Nov. 7, 1997, as amended at 90 FR 39328, Aug. 15, 2025]

### Authority

Authority: 29 U.S.C. 1302(b)(3), 1341, 1344, 1350.

### Source

Source: 62 FR 60428, Nov. 7, 1997, unless otherwise noted.

### Amendments

[62 FR 60428, Nov. 7, 1997, as amended at 90 FR 39328, Aug. 15, 2025]