[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: 29CFR4245.3]

[Page 958-959]
 
                             TITLE 29--LABOR
 
            CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION
 
PART 4245_NOTICE OF INSOLVENCY--Table of Contents
 
Sec. 4245.3  Notice of insolvency.

    (a) Requirement of notice. A plan sponsor of a multiemployer plan in 
reorganization that determines under section 4245 (b)(1), (d)(1) or 
(d)(2) of ERISA that the plan's available resources are or may be 
insufficient to pay benefits when due for a plan year shall so notify 
the PBGC and the interested parties, as defined in paragraph (e) of this 
section. A single notice may cover more than one plan year. The notices 
shall be delivered in the manner and within the time prescribed in this 
section and shall contain the information described in Sec. 4245.4.
    (b) When delivered. A plan sponsor shall mail or otherwise deliver 
the notices of insolvency no later than 30 days after it determines that 
the plan is or may become insolvent, as described in paragraph (a) of 
this section. However, the notice to participants and beneficiaries in 
pay status may be delivered concurrently with the first benefit payment 
made more than 30 days after the determination of insolvency.
    (c) Delivery to PBGC--(1) Method of filing. The PBGC applies the 
rules in subpart A of part 4000 of this chapter to

[[Page 959]]

determine permissible methods of filing the notice of insolvency with 
the PBGC under this part.
    (2) Filing date. The PBGC applies the rules in subpart C of part 
4000 of this chapter to determine the date that a notice of insolvency 
under this part was filed with the PBGC.
    (d) Delivery to interested parties--(1) Method of issuance. The PBGC 
applies the rules in subpart B of part 4000 of this chapter to determine 
permissible methods of issuance of the notice of insolvency to 
interested parties. In addition to the methods permitted under subpart B 
of part 4000, the plan sponsor may notify interested parties, other than 
participants and beneficiaries who are in pay status when the notice is 
required to be delivered, by posting the notice at participants' work 
sites or publishing the notice in a union newsletter or in a newspaper 
of general circulation in the area or areas where participants reside. 
Notice to a participant shall be deemed notice to that participant's 
beneficiary or beneficiaries.
    (2) Issuance date. The PBGC applies the rules in subpart C of part 
4000 of this chapter to determine the date that the notice of insolvency 
was issued.
    (e) Interested parties. For purposes of this part, the term 
``interested parties'' means--
    (1) Employers required to contribute to the plan;
    (2) Employee organizations that, for collective bargaining purposes, 
represent plan participants employed by such employers; and
    (3) Plan participants and beneficiaries.

[61 FR 34115, July 1, 1996, as amended at 68 FR 61357, Oct. 28, 2003]