[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4041.2]

[Page 736-737]
 
                             TITLE 29--LABOR
 
                          GUARANTY CORPORATION
 
PART 4041--TERMINATION OF SINGLE-EMPLOYER PLANS--Table of Contents
 
                      Subpart A--General Provisions
 
Sec. 4041.2  Definitions.

    The following terms are defined in Sec. 4001.2 of this chapter: 
affected party, annuity, benefit liabilities, Code, contributing 
sponsor, controlled group, distress termination, distribution date, EIN, 
employer, ERISA, guaranteed benefit, insurer, irrevocable commitment, 
IRS, mandatory employee contributions, normal retirement age, notice of 
intent to terminate, PBGC, person, plan administrator, plan year, PN, 
single-employer plan, standard termination, termination date, and title 
IV benefit. In addition, for purposes of this part:
    Distress termination notice means the notice filed with the PBGC 
pursuant to Sec. 4041.45.
    Distribution notice means the notice issued to the plan 
administrator by the PBGC pursuant to Sec. 4041.47(c) upon the PBGC's 
determination that the plan has sufficient assets to pay at least 
guaranteed benefits.
    Majority owner means, with respect to a contributing sponsor of a 
single-employer plan, an individual who owns, directly or indirectly, 50 
percent or more (taking into account the constructive ownership rules of 
section 414(b) and (c) of the Code) of--
    (1) An unincorporated trade or business;
    (2) The capital interest or the profits interest in a partnership; 
or
    (3) Either the voting stock of a corporation or the value of all of 
the stock of a corporation.
    Notice of noncompliance means a notice issued to a plan 
administrator by the PBGC pursuant to Sec. 4041.31 advising the plan 
administrator that the requirements for a standard termination

[[Page 737]]

have not been satisfied and that the plan is an ongoing plan.
    Notice of plan benefits means the notice to each participant and 
beneficiary required by Sec. 4041.24.
    Participant means--
    (1) Any individual who is currently in employment covered by the 
plan and who is earning or retaining credited service under the plan, 
including any individual who is considered covered under the plan for 
purposes of meeting the minimum participation requirements but who, 
because of offset or similar provisions, does not have any accrued 
benefits;
    (2) Any nonvested individual who is not currently in employment 
covered by the plan but who is earning or retaining credited service 
under the plan; and
    (3) Any individual who is retired or separated from employment 
covered by the plan and who is receiving benefits under the plan or is 
entitled to begin receiving benefits under the plan in the future, 
excluding any such individual to whom an insurer has made an irrevocable 
commitment to pay all the benefits to which the individual is entitled 
under the plan.
    Plan benefits means benefit liabilities determined as of the 
termination date (taking into account the rules in Sec. 4041.8(a)).
    Proposed termination date means the date specified as such by the 
plan administrator in the notice of intent to terminate or, if later, in 
the standard or distress termination notice.
    Residual assets means the plan assets remaining after all plan 
benefits and other liabilities (e.g., PBGC premiums) of the plan have 
been satisfied (taking into account the rules in Sec. 4041.8(b)).
    Standard termination notice means the notice filed with the PBGC 
pursuant to Sec. 4041.25.
    State guaranty association means an association of insurers created 
by a State, the District of Columbia, or the Commonwealth of Puerto Rico 
to pay benefits and to continue coverage, within statutory limits, under 
life and health insurance policies and annuity contracts when an insurer 
fails.