Termination

Discusses the difference between a multiemployer plan and a multiple employer plan and the termination provisions applicable to the latter.

Plan termination date agreed to by PBGC and the company was after participants had constructive notice of termination .

PBGC did not issue a premium refund for plan that it found was not terminated.

PBGC suspended the processing of a plan termination following receipt of a letter from a union that the termination of the plan violated the terms of a collective bargaining agreement.

Involuntary termination requirements in section 4042(a) do not apply to voluntary terminations under section 4041.

PBGC will not insure annuities purchased by a terminated multiemployer plan and PBGC is not authorized to pay benefits when a non-insolvent multiemployer plan terminates.

Addresses whether a qualified preretirement survivor annuity is a nonforfeitable benefit where the participant had not died as of the date of plan termination. Under the Multiemployer Pension Reform Act of 2014, a qualified preretirement survivor annuity is not to be treated as forfeitable solely because the participant is alive on the date of multiemployer plan insolvency or termination.

PBGC did not guarantee benefits for a terminated plan, the termination of which was done in concert with the establishment of new retirement arrangements designed to provide substantially the same benefits.

Allocation of assets of terminating plan otherwise than in accordance with section 4044 is not allowed. Transfer of asset to a defined contribution plan requires that all participants be offered option for immediate receipt of their benefits.

This opinion letter addresses whether an QPSAs and other benefits are nonforfeitable after termination of a multiemployer plan such that they should be considered in determining withdrawal liability.