[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: 29CFR4041A.22]

[Page 759-760]
 
                             TITLE 29--LABOR
 
                          GUARANTY CORPORATION
 
PART 4041A--TERMINATION OF MULTIEMPLOYER PLANS--Table of Contents
 
                     Subpart C--Plan Sponsor Duties
 
Sec. 4041A.22  Payment of benefits.

    (a) Except as provided in paragraph (b), the plan sponsor shall pay 
any benefit attributable to employer contributions, other than a death 
benefit, only in the form of an annuity.
    (b) The plan sponsor may pay a benefit in a form other than an 
annuity if--
    (1) The plan distributes plan assets in accordance with subpart D of 
this part;
    (2) The PBGC approves the payment of the benefit in an alternative 
form pursuant to Sec. 4041A.27; or

[[Page 760]]

    (3) The value of the entire nonforfeitable benefit does not exceed 
$1,750.
    (c) Except to the extent provided in the next sentence, the plan 
sponsor shall not pay benefits in excess of the amount that is 
nonforfeitable under the plan as of the date of termination, unless 
authorized to do so by the PBGC pursuant to Sec. 4041A.27. Subject to 
the restriction stated in paragraph (d) of this section, however, the 
plan sponsor may pay a qualified preretirement survivor annuity with 
respect to a participant who died after the date of termination.
    (d) The payment of benefits subject to reduction shall be 
discontinued to the extent provided in Sec. 4281.31 if the plan sponsor 
determines, in accordance with Sec. 4041A.24, that the plan's assets are 
insufficient to provide all nonforfeitable benefits.
    (e) The plan sponsor shall, to the extent provided in Sec. 4281.41, 
suspend the payment of nonguaranteed benefits if the plan sponsor 
determines, in accordance with Sec. 4041A.25, that the plan is 
insolvent.
    (f) The plan sponsor shall, to the extent required by Sec. 4281.42, 
make retroactive payments of suspended benefits if it determines under 
that section that the level of the plan's available resources requires 
such payments.