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Notes

29 C.F.R. §§ 4233.5–4233.9

5 sections in range

§4233.5. Plan information.

29 C.F.R. § 4233.5

An application for partition must include the following information with respect to the plan:
(a)
The name of the plan, Employer Identification Number (EIN), and three-digit Plan Number (PN).
(b)
The name, address, and telephone number of the plan sponsor and the plan sponsor's duly authorized representative, if any.
(c)
The most recent trust agreement, including all amendments adopted since the last restatement.
(d)
The most recent plan document, including all amendments adopted since the last restatement.
(e)
The most recent summary plan description (SPD), and all summaries of material modification (SMM) issued since the effective date of the most recent SPD.
(f)
The most recent rehabilitation plan (or funding improvement plan, if applicable), including all subsequent amendments and updates, and the percentage of total contributions received under each schedule of the rehabilitation plan for the most recent plan year available.
(g)
A copy of the plan's most recent IRS determination letter.
(h)
A copy of the plan's most recent Form 5500 (Annual Report Form) and all schedules and attachments (including the audited financial statement).
(i)
A current listing of employers who have an obligation to contribute to the plan, and the approximate number of participants for whom each employer is currently making contributions.
(j)
A schedule of withdrawal liability payments collected in each of the most recent five plan years.
Notes, amendments, and revision history

Authority

Authority: 29 U.S.C. 1302(b)(3), 1413.

Source

Source: 80 FR 35229, June 19, 2015, unless otherwise noted.

§4233.6. Partition information.

29 C.F.R. § 4233.6

An application for partition must include the following information with respect to the proposed partition:
(a)
A detailed description of the proposed partition, including the proposed structure, proposed effective date, and any larger integrated transaction of which the proposed partition is a part (including, but not limited to, an application for suspension of benefits under section 305(e)(9)(G), or a merger under section 4231 of ERISA). With respect to coordinated applications for partition and suspension of benefits, proposed effective dates for both transactions must satisfy the requirements of section 305(e)(9)(D)(v) of ERISA.
(b)
A narrative description of the events that led to the plan sponsor's decision to submit an application for partition (and, if applicable, application for suspension of benefits).
(c)
A narrative description of significant risks and assumptions relating to the proposed partition and the projections provided in support of the application.
(d)
If applicable, a copy of the plan sponsor's application for suspension of benefits (including all attachments and exhibits). If the plan sponsor intends to apply for a suspension of benefits with Treasury, but has not yet submitted an application to Treasury, a draft of the application may be filed, which must be supplemented by filing a copy of the completed application within the timeframe established in § 4233.10(d).
(e)
A detailed description of all measures the plan sponsor has taken (or is taking) to avoid insolvency, and any measures the plan sponsor considered taking but did not take, including the factor(s) the plan sponsor considered in making these determinations. Include all relevant documentation relating to the plan sponsor's determination that it has taken (or is taking) measures to avoid insolvency.
(f)
A detailed description of the estimated benefit amounts the plan sponsor has determined are necessary to be partitioned for the plan to remain solvent, including the following information:
(1)
The estimated number of participants and beneficiaries whose benefits (or any portion thereof) would be transferred, including the number of retirees receiving payments (if any), terminated vested participants (if any), and active participants (if any).
(2)
Supporting data, calculations, assumptions, and a description of the methodology used to determine the estimated benefit amounts.
(3)
If applicable, a description of any classifications or specific group(s) of participants and beneficiaries whose benefits (or any portion thereof) the plan sponsor proposes to transfer, and the plan sponsor's rationale or basis for selecting those classifications or groups.
(g)
A copy of the draft notice of application for partition described in § 4233.11.
Notes, amendments, and revision history

Amendments

[80 FR 35229, June 19, 2015, as amended at 80 FR 79694, Dec. 23, 2015]

Authority

Authority: 29 U.S.C. 1302(b)(3), 1413.

Source

Source: 80 FR 35229, June 19, 2015, unless otherwise noted.

Amendments

[80 FR 35229, June 19, 2015, as amended at 80 FR 79694, Dec. 23, 2015]

§4233.7. Actuarial and financial information.

29 C.F.R. § 4233.7

(a)
Required information. An application for partition must include the following plan actuarial and financial information:
(1)
A copy of the plan's most recent actuarial report and copies of the actuarial reports for the two preceding plan years.
(2)
A copy of the plan actuary's most recent certification of critical and declining status, including a detailed description of the assumptions used in the certification, the basis for the projection of future contributions, withdrawal liability payments, investment return assumptions, and any other assumption that may have a material effect on projections.
(3)
A detailed statement of the basis for the conclusion that the plan will not remain solvent without a partition and, if applicable, suspension of benefits, including supporting data, calculations, assumptions, and a description of the methodology. Include as an exhibit annual cash flow projections for the plan without partition (or suspension, if applicable) through the projected date of insolvency. Annual cash flow projections must reflect the following information:
(i)
Market value of assets as of the beginning of the year.
(ii)
Contributions and withdrawal liability payments.
(iii)
Benefit payments organized by participant status (e.g., active, retiree, terminated vested, beneficiary).
(iv)
Administrative expenses.
(v)
Market value of assets at year end.
(4)
A long-term projection reflecting reduced benefit disbursements at the PBGC-guarantee level after insolvency, and a statement of the present value of all future financial assistance without a partition (using the interest and mortality assumptions applicable to the valuation of plans terminated by mass withdrawal as specified in § 4281.13 of this chapter and other reasonable actuarial assumptions, including retirement age, form of benefit payment, and administrative expenses, certified by an enrolled actuary).
(5)
A detailed statement of the basis for the conclusion that the original plan will remain solvent if the application for partition, and, if applicable, the application for suspension of benefits, is granted, including supporting data, calculations, assumptions, and a description of the methodology, which must be consistent with section 305(e)(9)(D)(iv) and the regulations thereunder (including any adjustment to the cash flows in the initial year to incorporate recent actual fund activity required to be included under that section). Annual cash flow projections for the original plan with partition (and suspension, if applicable) must be included as an exhibit and must reflect the following information:
(i)
Market value of assets as of the beginning of the year.
(ii)
Contributions and withdrawal liability payments.
(iii)
Benefit payments organized by participant status (e.g., active, retiree, terminated vested, beneficiary).
(iv)
Administrative expenses.
(v)
Market value of assets at year end.
(6)
If applicable, a copy of the plan actuary's certification under section 305(e)(9)(C)(i) of ERISA.
(7)
The plan's projected insolvency date with benefit suspension alone (if applicable), including supporting data.
(8)
A long-term projection reflecting benefit disbursements from the successor plan (organized by participant status (e.g., active, retiree, terminated vested, beneficiary)), and a statement of the present value of all future financial assistance to be paid as a result of a partition (using the interest and mortality assumptions applicable to the valuation of plans terminated by mass withdrawal as specified in § 4281.13 of this chapter and other reasonable actuarial assumptions, including retirement age, form of benefit payment, and administrative expenses, certified by an enrolled actuary).
(9)
A long-term projection of pre-partition benefit disbursements from the original plan reflecting reduced benefit disbursements at the PBGC-guarantee level beginning on the proposed effective date of the partition (using a closed group valuation and no accruals after the proposed effective date of partition, and organized separately by participant status groupings (e.g., active, retiree, terminated vested, beneficiary)).
(10)
A long-erm projection of pre-partition benefit disbursements from the original plan reflecting the maximum benefit suspensions permissible under section 305(e)(9) of ERISA beginning on the proposed effective date of the partition (using an open group valuation and organized separately by participant status groupings (e.g., active, retiree, terminated vested, beneficiary)).
(b)
Additional projections. PBGC may ask the plan for additional projections based on assumptions that it specifies.
(c)
Actuarial calculations and assumptions—
(1)
General. All calculations required by this part must be performed by an enrolled actuary.
(2)
Assumptions. All calculations required by this part must be consistent with calculations used for purposes of an application for suspension of benefits under section 305(e)(9) of ERISA, and based on methods and assumptions each of which is reasonable (taking into account the experience of the plan and reasonable expectations), and which, in combination, offer the actuary's best estimate of anticipated experience under the plan. Any change(s) in assumptions from the most recent actuarial valuation, and critical and declining status certification, must be disclosed and must be accompanied by a statement explaining the reason(s) for any change(s) in assumptions.
(3)
Updates. PBGC may, in its discretion, require updated calculations and representations based on the actual effective date of a partition, revised actuarial assumptions, or for other good cause.
Notes, amendments, and revision history

Amendments

[80 FR 35229, June 19, 2015, as amended at 80 FR 79694, Dec. 23, 2015]

Authority

Authority: 29 U.S.C. 1302(b)(3), 1413.

Source

Source: 80 FR 35229, June 19, 2015, unless otherwise noted.

Amendments

[80 FR 35229, June 19, 2015, as amended at 80 FR 79694, Dec. 23, 2015]

§4233.8. Participant census data.

29 C.F.R. § 4233.8

An application for partition must include a copy of the census data used for the projections described in § 4233.7(a)(3) and (5), including:
(a)
Participant type (retiree, beneficiary, disabled, terminated vested, active, alternate payee).
(b)
Date of birth.
(c)
Gender.
(d)
Credited service for guarantee calculation (i.e., number of years of participation).
(e)
Vested accrued monthly benefit before benefit suspension under section 305(e)(9) of ERISA.
(f)
Vested accrued monthly benefit after benefit suspension under section 305(e)(9) of ERISA.
(g)
Monthly benefit guaranteed by PBGC (determined under the terms of the original plan without respect to benefit suspensions).
(h)
Benefit commencement date (for participants in pay status and others for which the reported benefit is not payable at Normal Retirement Date).
(i)
For each participant in pay status—
(1)
Form of payment, and
(2)
Data relevant to the form of payment, including—
(i)
For a joint and survivor benefit, the beneficiary's benefit amount (before and after suspension) and the beneficiary's date of birth;
(ii)
For a Social Security level income benefit, the date of any change in the benefit amount, and the benefit amount after such change;
(iii)
For a 5-year certain or 10-year certain benefit (or similar benefit), the relevant defined period.
(iv)
For a form of payment not otherwise described in this section, the data necessary for the valuation of the form of payment, including the benefit amount before and after suspension.
(j)
If an actuarial increase for postponed retirement applies or if the form of annuity is a Social Security level income option, the monthly vested benefit payable at normal retirement age in normal form of annuity.
Notes, amendments, and revision history

Amendments

[80 FR 79694, Dec. 23, 2015]

Authority

Authority: 29 U.S.C. 1302(b)(3), 1413.

Source

Source: 80 FR 35229, June 19, 2015, unless otherwise noted.

Amendments

[80 FR 79694, Dec. 23, 2015]

§4233.9. Financial assistance information.

29 C.F.R. § 4233.9

(a)
Required information. An application for partition must include the estimated amount of annual financial assistance requested from PBGC for the first year the plan receives financial assistance if partition is approved.
(b)
Additional information. PBGC may ask the plan for additional information in accordance with § 4233.4(b)(1).
Notes, amendments, and revision history

Authority

Authority: 29 U.S.C. 1302(b)(3), 1413.

Source

Source: 80 FR 35229, June 19, 2015, unless otherwise noted.