[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: 29CFR4041.49]

[Page 756-757]
 
                             TITLE 29--LABOR
 
                          GUARANTY CORPORATION
 
PART 4041--TERMINATION OF SINGLE-EMPLOYER PLANS--Table of Contents
 
                 Subpart C--Distress Termination Process
 
Sec. 4041.49  Verification of plan sufficiency prior to closeout.

    (a) General rule. Before distributing plan assets pursuant to a 
closeout under Sec. 4041.50, the plan administrator must verify whether 
the plan's assets are still sufficient to provide for benefits at the 
level determined by the PBGC, i.e., guaranteed benefits or benefit 
liabilities. If the plan administrator finds that the plan is no longer 
able to provide for benefits at the level determined by the PBGC, then 
paragraph (b) or (c) of this section, as appropriate, will apply.
    (b) Subsequent insufficiency for guaranteed benefits. When a plan 
administrator finds that a plan is no longer sufficient for guaranteed 
benefits, the plan administrator must promptly notify the PBGC in 
writing of that fact and may take no further action to implement the 
plan termination, pending the PBGC's determination and notice pursuant 
to paragraph (b)(1) or (b)(2) of this section.
    (1) PBGC concurrence with finding. If the PBGC concurs with the plan 
administrator's finding, the distribution notice will be void, and the 
PBGC will--
    (i) Issue the plan administrator a notice of inability to determine 
sufficiency in accordance with Sec. 4041.47(b); and
    (ii) Require the plan administrator to submit a new valuation, 
certified to by an enrolled actuary, of the benefit liabilities and 
guaranteed benefits under the plan, valued in accordance with 
Secs. 4044.41 through 4044.57 of this chapter as of the date of the plan 
administrator's notice to the PBGC.
    (2) PBGC non-concurrence with finding. If the PBGC does not concur 
with

[[Page 757]]

the plan administrator's finding, it will so notify the plan 
administrator in writing, and the distribution notice will remain in 
effect.
    (c) Subsequent insufficiency for benefit liabilities. When a plan 
administrator finds that a plan is sufficient for guaranteed benefits 
but is no longer sufficient for benefit liabilities, the plan 
administrator must immediately notify the PBGC in writing of this fact, 
but must continue with the distribution of assets in accordance with 
Sec. 4041.50.
    (d) Finding by PBGC of subsequent insufficiency. In any case in 
which the PBGC finds on its own initiative that a subsequent 
insufficiency for guaranteed benefits has occurred, paragraph (b)(1) of 
this section will apply, except that the guaranteed benefits must be 
revalued as of the date of the PBGC's finding.
    (e) Restrictions upon finding of subsequent insufficiency. When the 
plan administrator makes the finding described in paragraph (b) of this 
section or receives notice that the PBGC has made the finding described 
in paragraph (d) of this section, the plan administrator is (except to 
the extent the PBGC otherwise directs) subject to the prohibitions in 
Sec. 4041.42.