[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: 29CFR4041.23]

[Page 742-743]
 
                             TITLE 29--LABOR
 
                          GUARANTY CORPORATION
 
PART 4041--TERMINATION OF SINGLE-EMPLOYER PLANS--Table of Contents
 
                 Subpart B--Standard Termination Process
 
Sec. 4041.23  Notice of intent to terminate.

    (a) Notice requirement. (1) In general. At least 60 days and no more 
than 90 days before the proposed termination date, the plan 
administrator must issue a notice of intent to terminate to each person 
(other than the PBGC) that is an affected party as of the proposed 
termination date. In the case of a beneficiary of a deceased participant 
or an alternate payee, the plan administrator must issue a notice of 
intent to terminate promptly to any person that becomes an affected 
party after the proposed termination date and on or before the 
distribution date.
    (2) Early issuance of NOIT. The PBGC may consider a notice of intent 
to terminate to be timely under paragraph (a)(1) of this section if the 
notice was early by a de minimis number of days and the PBGC finds that 
the early issuance was the result of administrative error.
    (b) Contents of notice. The PBGC's standard termination forms and 
instructions package includes a model notice of intent to terminate. The 
notice of intent to terminate must include --
    (1) Identifying information. The name and PN of the plan, the name 
and EIN of each contributing sponsor, and the name, address, and 
telephone number of the person who may be contacted by an affected party 
with questions concerning the plan's termination;
    (2) Intent to terminate plan. A statement that the plan 
administrator intends to terminate the plan in a standard termination as 
of a specified proposed termination date and will notify the affected 
party if the proposed termination date is changed to a later date or if 
the termination does not occur;
    (3) Sufficiency requirement. A statement that, in order to terminate 
in a standard termination, plan assets must be sufficient to provide all 
plan benefits under the plan;
    (4) Cessation of accruals. A statement (as applicable) that--
    (i) Benefit accruals will cease as of the termination date, but will 
continue if the plan does not terminate;
    (ii) A plan amendment has been adopted under which benefit accruals 
will cease, in accordance with section 204(h) of ERISA, as of the 
proposed termination date or a specified date before the proposed 
termination date, whether or not the plan is terminated; or
    (iii) Benefit accruals ceased, in accordance with section 204(h) of 
ERISA, as of a specified date before the notice of intent to terminate 
was issued;

[[Page 743]]

    (5) Annuity information. If required under Sec. 4041.27, the annuity 
information described therein;
    (6) Benefit information. A statement that each affected party 
entitled to plan benefits will receive a written notification regarding 
his or her plan benefits;
    (7) Summary plan description. A statement as to how an affected 
party entitled to receive the latest updated summary plan description 
under section 104(b) of ERISA can obtain it.
    (8) Continuation of monthly benefits. For persons who are, as of the 
proposed termination date, in pay status, a statement (as applicable) --
    (i) That their monthly (or other periodic) benefit amounts will not 
be affected by the plan's termination; or
    (ii) Explaining how their monthly (or other periodic) benefit 
amounts will be affected under plan provisions); and
    (9) Extinguishment of guarantee. A statement that after plan assets 
have been distributed in full satisfaction of all plan benefits under 
the plan with respect to a participant or a beneficiary of a deceased 
participant, either by the purchase of irrevocable commitments (annuity 
contracts) or by an alternative form of distribution provided for under 
the plan, the PBGC no longer guarantees that participant's or 
beneficiary's plan benefits.
    (c) Spin-off/termination transactions. In the case of a transaction 
in which a single defined benefit plan is split into two or more plans 
and there is a reversion of residual assets to an employer upon the 
termination of one or more but fewer than all of the resulting plans (a 
``spin-off/termination transaction''), the plan administrator must, 
within the time period specified in paragraph (a) of this section, 
provide a notice describing the transaction to all participants, 
beneficiaries of deceased participants, and alternate payees in the 
original plan who are, as of the proposed termination date, covered by 
an ongoing plan.