[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: 29CFR4041.22]

[Page 742]
 
                             TITLE 29--LABOR
 
                          GUARANTY CORPORATION
 
PART 4041--TERMINATION OF SINGLE-EMPLOYER PLANS--Table of Contents
 
                 Subpart B--Standard Termination Process
 
Sec. 4041.22  Administration of plan during pendency of termination process.

    (a) In general. A plan administrator may distribute plan assets in 
connection with the termination of the plan only in accordance with the 
provisions of this part. From the first day the plan administrator 
issues a notice of intent to terminate to the last day of the PBGC's 
review period under Sec. 4041.26(a), the plan administrator must 
continue to carry out the normal operations of the plan. During that 
time period, except as provided in paragraph (b) of this section, the 
plan administrator may not--
    (1) Purchase irrevocable commitments to provide any plan benefits; 
or
    (2) Pay benefits attributable to employer contributions, other than 
death benefits, in any form other than an annuity.
    (b) Exception. The plan administrator may pay benefits attributable 
to employer contributions either through the purchase of irrevocable 
commitments or in a form other than an annuity if--
    (1) The participant has separated from active employment or is 
otherwise permitted under the Code to receive the distribution;
    (2) The distribution is consistent with prior plan practice; and
    (3) The distribution is not reasonably expected to jeopardize the 
plan's sufficiency for plan benefits.