[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: 29CFR4041.21]

[Page 741-742]
 
                             TITLE 29--LABOR
 
                          GUARANTY CORPORATION
 
PART 4041--TERMINATION OF SINGLE-EMPLOYER PLANS--Table of Contents
 
                 Subpart B--Standard Termination Process
 
Sec. 4041.21  Requirements for a standard termination.


    (a) Notice and distribution requirements. A standard termination is 
valid if the plan administrator--
    (1) Issues a notice of intent to terminate to all affected parties 
(other than the PBGC) in accordance with Sec. 4041.23;
    (2) Issues notices of plan benefits to all affected parties entitled 
to plan benefits in accordance with Sec. 4041.24;
    (3) Files a standard termination notice with the PBGC in accordance 
with Sec. 4041.25;
    (4) Distributes the plan's assets in satisfaction of plan benefits 
in accordance with Sec. 4041.28(a) and (c); and
    (5) In the case of a spin-off/termination transaction (as defined in 
Sec. 4041.23(c)), issues the notices required by Sec. 4041.23(c), 
Sec. 4041.24(f), and Sec. 4041.27(a)(2) in accordance with such 
sections.
    (b) Plan sufficiency. (1) Commitment to make plan sufficient. A 
contributing sponsor of a plan or any other member of the plan's 
controlled group may make a commitment to contribute any additional sums 
necessary to enable the plan to satisfy plan benefits in accordance with 
Sec. 4041.28. A commitment will be valid only if--
    (i) It is made to the plan;
    (ii) It is in writing, signed by the contributing sponsor or 
controlled group member(s); and
    (iii) In any case in which the person making the commitment is the 
subject of a bankruptcy liquidation or reorganization proceeding, as 
described in Sec. 4041.41(c)(1) or (c)(2), the commitment is approved by 
the court before which the liquidation or reorganization proceeding is 
pending or a person not in bankruptcy unconditionally guarantees to meet 
the commitment at or before the time distribution of assets is required.
    (2) Alternative treatment of majority owner's benefit. A majority 
owner may elect to forgo receipt of his or her plan benefits to the 
extent necessary to enable the plan to satisfy all other plan benefits 
in accordance with Sec. 4041.28. Any such alternative treatment of the 
majority owner's plan benefits is valid only if--
    (i) The majority owner's election is in writing;
    (ii) In any case in which the plan would require the spouse of the 
majority owner to consent to distribution of the majority owner's 
receipt of his or her plan benefits in a form other than a qualified 
joint and survivor annuity, the spouse consents in writing to the 
election;
    (iii) The majority owner makes the election and the spouse consents 
during the time period beginning with the

[[Page 742]]

date of issuance of the first notice of intent to terminate and ending 
with the date of the last distribution; and
    (iv) Neither the majority owner's election nor the spouse's consent 
is inconsistent with a qualified domestic relations order (as defined in 
section 206(d)(3) of ERISA).