Termination

PBGC, once it is appointed statutory trustee of a terminated plan, pays lump sums to participants entitled to small benefits.

Plan assets must be allocated in succession to the benefits described in each of the six priority categories established by statute.

Discusses mechanics of converting defined benefit plan to an individual account plan.

A split-up of one plan and the termination of another is not subject to the asset reversion implementation guidelines; PBGC recognizes the termination and reestablishment of a plan.

No plan termination occurred when subsidiaries ended plan participation.

PBGC accepted the withdrawal of a plan’s notice of intent to terminate because employers would continue to make contributions pursuant to their collective bargaining agreements and the plan participants would continue to receive credit under the plan for service with contributing employers.

The purchase of participating group annuity contracts to satisfy all accrued benefits with a termination/reestablishment transaction of a plan is permissible.

When a defined benefit multiemployer plan merges into a defined contribution annuity plan, the multiemployer plan terminates; addresses the rules and procedures governing distribution of the assets of a terminated multiemployer plan.

For PBGC to suspend a plan termination, PBGC must be advised timely and in writing that a formal challenge has been initiated asserting that the termination violates an existing collective bargaining agreement.

Addresses a plan’s notice of intent to terminate, date of plan termination, and the ability to terminate the plan by agreement.