[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4043.26]

[Page 831-832]
 
                             TITLE 29--LABOR
 
            CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION
 
PART 4043_REPORTABLE EVENTS AND CERTAIN OTHER NOTIFICATION REQUIREMENTS
--Table of Contents
 
            Subpart B_Post-Event Notice of Reportable Events
 
Sec. 4043.26  Inability to pay benefits when due.

    (a) Reportable event. A reportable event occurs when a plan is 
currently unable or projected to be unable to pay benefits.

[[Page 832]]

    (1) Current inability. A plan is currently unable to pay benefits if 
it fails to provide any participant or beneficiary the full benefits to 
which the person is entitled under the terms of the plan, at the time 
the benefit is due and in the form in which it is due. A plan shall not 
be treated as being currently unable to pay benefits if its failure to 
pay is caused solely by the need to verify the person's eligibility for 
benefits; the inability to locate the person; or any other 
administrative delay if the delay is for less than the shorter of two 
months or two full benefit payment periods.
    (2) Projected inability. A plan is projected to be unable to pay 
benefits when, as of the last day of any quarter of a plan year, the 
plan's ``liquid assets'' are less than two times the amount of the 
``disbursements from the plan'' for such quarter. Liquid assets and 
disbursements from the plan have the same meaning as under section 
302(e)(5)(E) of ERISA and section 412(m)(5)(E) of the Code.
    (b) Initial information required. In addition to the information in 
Sec. 4043.3(b), the notice shall include--
    (1) The date of any current inability and the amount of benefit 
payments not made;
    (2) The next date on which the plan is expected to be unable to pay 
benefits, the amount of the projected shortfall, and the number of plan 
participants and beneficiaries expected to be affected by the inability 
to pay benefits;
    (3) For a projected inability described in paragraph (a)(2), the 
amount of the plan's liquid assets at the end of the quarter, and the 
amount of its disbursements for the quarter; and
    (4) The name, address, and phone number of the trustee of the plan 
(and of any custodian).
    (c) Waivers. Notice is waived unless the reportable event occurs 
during a plan year for which the plan is described in section 
302(d)(6)(A) of ERISA or section 412(l)(6)(A) of the Code.