[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: 29CFR4041.44]

[Page 753-754]
 
                             TITLE 29--LABOR
 
                          GUARANTY CORPORATION
 
PART 4041--TERMINATION OF SINGLE-EMPLOYER PLANS--Table of Contents
 
                 Subpart C--Distress Termination Process
 
Sec. 4041.44  PBGC review of notice of intent to terminate.

    (a) General. When a notice of intent to terminate is filed with it, 
the PBGC--
    (1) Will determine whether the notice was issued in compliance with 
Sec. 4041.43; and
    (2) Will advise the plan administrator of its determination, in 
accordance with paragraph (b) or (c) of this section, no later than the 
proposed termination date specified in the notice.
    (b) Tentative finding of compliance. If the PBGC determines that the 
issuance of the notice of intent to terminate appears to be in 
compliance with Sec. 4041.43, it will notify the plan administrator in 
writing that--
    (1) The PBGC has made a tentative determination of compliance;
    (2) The distress termination proceeding may continue; and
    (3) After reviewing the distress termination notice filed pursuant 
to Sec. 4041.45, the PBGC will make final, or reverse, this tentative 
determination.
    (c) Finding of noncompliance. If the PBGC determines that the 
issuance of the notice of intent to terminate was not in compliance with 
Sec. 4041.43 (except for requirements that the PBGC elects to waive 
under Sec. 4041.41(b)(2)(i) with respect to the notice filed with the 
PBGC), the PBGC will notify the plan administrator in writing--
    (1) That the PBGC has determined that the notice of intent to 
terminate was not properly issued; and
    (2) That the proposed distress termination is null and void and the 
plan is an ongoing plan.
    (d) Information on need to institute section 4042 proceedings. The 
PBGC may require the plan administrator to submit, within 20 days after 
the plan administrator's receipt of the PBGC's written request (or such 
other period as may be specified in such written request), any 
information that the PBGC determines it needs in order to decide whether 
to institute termination or trusteeship proceedings pursuant to section 
4042 of ERISA, whenever--
    (1) A notice of intent to terminate indicates that benefits 
currently in pay status (or that should be in pay status) are not being 
paid or that this is likely to occur within the 180-day period following 
the issuance of the notice of intent to terminate;
    (2) The PBGC issues a determination under paragraph (c) of this 
section; or
    (3) The PBGC has any reason to believe that it may be necessary or 
appropriate to institute proceedings under section 4042 of ERISA.
    (e) Reconsideration of finding of noncompliance. A plan 
administrator may request reconsideration of the PBGC's determination of 
noncompliance under paragraph (c) of this section in accordance with the 
rules prescribed in part

[[Page 754]]

4003, subpart C, of this chapter. Any request for reconsideration 
automatically stays the effectiveness of the determination until the 
PBGC issues its decision on reconsideration, but does not stay the time 
period within which information must be submitted to the PBGC in 
response to a request under paragraph (d) of this section.
    (f) Notice to affected parties. Upon a decision by the PBGC 
affirming a finding of noncompliance or upon the expiration of the 
period within which the plan administrator may request reconsideration 
of a finding of noncompliance (or, if earlier, upon the plan 
administrator's decision not to request reconsideration), the plan 
administrator must notify the affected parties (and any persons who were 
provided notice under Sec. 4041.43(e)) in writing that the plan is not 
going to terminate or, if applicable, that the termination is invalid 
but that a new notice of intent to terminate is being issued.