[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4011.3]

[Page 780]
 
                             TITLE 29--LABOR
 
            CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION
 
PART 4011_DISCLOSURE TO PARTICIPANTS--Table of Contents
 
Sec. 4011.3  Notice requirement.

    (a) General. Except as otherwise provided in this part, the plan 
administrator of a plan must provide a Participant Notice for a plan 
year if a variable rate premium is payable for the plan under section 
4006(a)(3)(E) of ERISA and part 4006 of this chapter for that plan year, 
unless, for that plan year or for the prior plan year, the plan meets 
the Deficit Reduction Contribution (``DRC'') Exception Test in paragraph 
(b) of this section. The DRC Exception Test may be applied using the 
Small Plan DRC Exception Test rules in Sec. 4011.4(b), where 
applicable.
    (b) DRC Exception Test--(1) Basic rule. A plan meets the DRC 
Exception Test for a plan year if it is exempt from the requirements of 
section 302(d) of ERISA for that plan year by reason of section 
302(d)(9), without regard to the small plan exemption in section 
302(d)(6)(A).
    (2) 1994 plan year. A plan satisfies the DRC Exception Test for the 
1994 plan year if, for any two of the plan years beginning in 1992, 
1993, and 1994 (whether or not consecutive), the plan satisfies any 
requirement of section 302(d)(9)(D)(i) of ERISA.
    (c) Penalties for non-compliance. If a plan administrator fails to 
provide a Participant Notice within the specified time limit or omits 
material information from a Participant Notice, the PBGC may assess a 
penalty under section 4071 of ERISA of up to $1,100 a day for each day 
that the failure continues.

[61 FR 34026, July 1, 1996, as amended at 62 FR 36994, July 10, 1997]