[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: 29CFR4245.5]

[Page 960-961]
 
                             TITLE 29--LABOR
 
            CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION
 
PART 4245_NOTICE OF INSOLVENCY--Table of Contents
 
Sec. 4245.5  Notice of insolvency benefit level.

    (a) Requirement of notice. Except as provided in paragraph (b) of 
this section, for each insolvency year the plan sponsor shall notify the 
PBGC and the interested parties, as defined in Sec. 4245.3(e), of the 
level of benefits expected to be paid during the year (the ``insolvency 
benefit level''). These notices shall be delivered in the manner and 
within the time prescribed in this section and shall contain the 
information described in Sec. 4245.6.
    (b) Waiver of notice to certain interested parties. The notice of 
insolvency benefit level required under this section need not be given 
to interested parties, other than participants and beneficiaries who are 
in pay status or are reasonably expected to enter pay status during the 
insolvency year, for an insolvency year immediately following the plan 
year in which a notice of insolvency was required to be delivered 
pursuant to Sec. 4245.3, provided that the notice of insolvency was in 
fact delivered.
    (c) When delivered. The plan sponsor shall mail or otherwise deliver 
the required notices of insolvency benefit level no later than 60 days 
before the beginning of the insolvency year, except that if the 
determination of insolvency is made fewer than 120 days before the 
beginning of the insolvency year, the notices shall be delivered within 
60 days after the date of the plan sponsor's determination.
    (d) Delivery to PBGC--(1) Method of filing. The PBGC applies the 
rules in subpart A of part 4000 of this chapter to determine permissible 
methods of filing a notice of insolvency benefit level 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 
benefit level under this part was filed with the PBGC.
    (e) 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 benefit 
levels 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 or 
reasonably expected to enter pay status during the insolvency year for 
which

[[Page 961]]

the notice is given, 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 
benefit levels was issued.

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