[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: 29CFR4041.47]

[Page 755]
 
                             TITLE 29--LABOR
 
                          GUARANTY CORPORATION
 
PART 4041--TERMINATION OF SINGLE-EMPLOYER PLANS--Table of Contents
 
                 Subpart C--Distress Termination Process
 
Sec. 4041.47  PBGC determination of plan sufficiency/insufficiency.

    (a) General. Upon receipt of participant and benefit information 
filed pursuant to Sec. 4041.45 (b)(1) or (c), the PBGC will determine 
the degree to which the plan is sufficient and notify the plan 
administrator in writing of its determination in accordance with 
paragraph (b) or (c) of this section.
    (b) Insufficiency for guaranteed benefits. If the PBGC finds that it 
is unable to determine that a plan is sufficient for guaranteed 
benefits, it will issue a ``notice of inability to determine 
sufficiency'' notifying the plan administrator of this finding and 
advising the plan administrator that--
    (1) The plan administrator must continue to administer the plan 
under the restrictions imposed by Sec. 4041.42; and
    (2) The termination will be completed under section 4042 of ERISA.
    (c) Sufficiency for guaranteed benefits or benefit liabilities. If 
the PBGC determines that a plan is sufficient for guaranteed benefits 
but not for benefit liabilities or is sufficient for benefit 
liabilities, the PBGC will issue to the plan administrator a 
distribution notice advising the plan administrator--
    (1) To issue notices of benefit distribution in accordance with 
Sec. 4041.48;
    (2) To close out the plan in accordance with Sec. 4041.50;
    (3) To file a timely post-distribution certification with the PBGC 
in accordance with Sec. 4041.50(b); and
    (4) That either the plan administrator or the contributing sponsor 
must preserve and maintain plan records in accordance with Sec. 4041.5.
    (d) Alternative treatment of majority owner's benefit. A majority 
owner may elect to forgo receipt of all or part of his or her plan 
benefits in connection with a distress termination. Any such alternative 
treatment--
    (1) Is valid only if the conditions in Sec. 4041.21(b)(2) (i) 
through (iv) are met (except that, in the case of a plan that does not 
distribute assets pursuant to Sec. 4041.50, the majority owner may make 
the election and the spouse may consent any time on or after the date of 
issuance of the first notice of intent to terminate); and--
    (2) Is subject to the PBGC's approval if the election--
    (i) Is made after the termination date; and
    (ii) Would result in the PBGC determining that the plan is 
sufficient for guaranteed benefits under paragraph (c).