['Retirement Benefits']
['Pension Benefits Guaranty Corporation (PBGC)']
11/16/2023
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(a) Notice and distribution requirements. A standard termination is valid if the plan administrator—
(1) Issues a notice of intent to terminate to all affected parties (other than the PBGC) in accordance with §4041.23;
(2) Issues notices of plan benefits to all affected parties entitled to plan benefits in accordance with §4041.24;
(3) Files a standard termination notice with the PBGC in accordance with §4041.25;
(4) Distributes the plan's assets in satisfaction of plan benefits in accordance with §4041.28(a) and (c); and
(5) In the case of a spin-off/termination transaction (as defined in §4041.23(c)), issues the notices required by §4041.23(c), §4041.24(f), and §4041.27(a)(2) in accordance with such sections.
(b) Plan sufficiency—
(1) Commitment to make plan sufficient. A contributing sponsor of a plan or any other member of the plan's controlled group may make a commitment to contribute any additional sums necessary to enable the plan to satisfy plan benefits in accordance with §4041.28. A commitment will be valid only if—
(i) It is made to the plan;
(ii) It is in writing, signed by the contributing sponsor or controlled group member(s); and
(iii) In any case in which the person making the commitment is the subject of a bankruptcy liquidation or reorganization proceeding, as described in §4041.41(c)(1) or (c)(2), the commitment is approved by the court before which the liquidation or reorganization proceeding is pending or a person not in bankruptcy unconditionally guarantees to meet the commitment at or before the time distribution of assets is required.
(2) Alternative treatment of majority owner's benefit. A majority owner may elect to forgo receipt of his or her plan benefits to the extent necessary to enable the plan to satisfy all other plan benefits in accordance with §4041.28. Any such alternative treatment of the majority owner's plan benefits is valid only if—
(i) The majority owner's election is in writing;
(ii) In any case in which the plan would require the spouse of the majority owner to consent to distribution of the majority owner's receipt of his or her plan benefits in a form other than a qualified joint and survivor annuity, the spouse consents in writing to the election;
(iii) The majority owner makes the election and the spouse consents during the time period beginning with the date of issuance of the first notice of intent to terminate and ending with the date of the last distribution; and
(iv) Neither the majority owner's election nor the spouse's consent is inconsistent with a qualified domestic relations order (as defined in section 206(d)(3) of ERISA).
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