cfr_sections
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35 rows where agency = "PBGC" and part_number = 4022 sorted by section_id
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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 29:29:9.1.4.16.8.1.11.1 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.1 Purpose and scope. | PBGC | [61 FR 34028, July 1, 1996, as amended at 62 FR 67728, Dec. 30, 1997] | The purpose of this part is to prescribe rules governing the calculation and payment of benefits payable in terminated single-employer plans under section 4022 of ERISA. Subpart A, which applies to each plan providing benefits guaranteed under title IV of ERISA, contains definitions applicable to all subparts, and describes benefits that are guaranteed by the PBGC subject to the limitations set forth in subpart B. Subpart C is reserved for rules relating to the calculation and payment of unfunded nonguaranteed benefits under section 4022(c) of ERISA. Subpart D prescribes procedures that minimize the overpayment of benefits by plan administrators after initiating distress terminations of single-employer plans that are not expected to be sufficient for guaranteed benefits. Subpart E sets forth the method of recoupment of benefit payments in excess of the amounts permitted under sections 4022, 4022B, and 4044 of ERISA from participants and beneficiaries in PBGC-trusteed plans, and provides for reimbursement of benefit underpayments. (The provisions of this part have not been amended to take account of changes made in section 4022 of ERISA by sections 766 and 777 of the Retirement Protection Act of 1994.) | |||
| 29:29:9.1.4.16.8.1.11.10 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.10 Earliest PBGC Retirement Date. | PBGC | [67 FR 16955, Apr. 8, 2002] | The Earliest PBGC Retirement Date for a participant is the earliest date on which the participant could retire under plan provisions for purposes of section 4044(a)(3)(B) of ERISA. The Earliest PBGC Retirement Date is determined in accordance with this § 4022.10. For purposes of this § 4022.10, “age” means the participant's age as of his or her last birthday (unless otherwise required by the context). (a) Immediate annuity at or after age 55. If the earliest date on which a participant could separate from service with the right to receive an immediate annuity is on or after the date the participant reaches age 55, the Earliest PBGC Retirement Date for the participant is the earliest date on which the participant could separate from service with the right to receive an immediate annuity. (b) Immediate annuity before age 55. If the earliest date on which a participant could separate from service with the right to receive an immediate annuity is before the date the participant reaches age 55, the Earliest PBGC Retirement Date for the participant is the date the participant reaches age 55 (except as provided in paragraph (c) of this section). (c) Facts and circumstances. If a participant could separate from service with the right to receive an immediate annuity before the date the participant reaches age 55, the PBGC will make a determination, under the facts and circumstances, as to whether the participant could retire under plan provisions for purposes of section 4044(a)(3)(B) of ERISA on an earlier date. If the PBGC determines, under the facts and circumstances, that the participant could retire under plan provisions for those purposes on an earlier date, that earlier date is the Earliest PBGC Retirement Date for the participant. In making this determination, the PBGC will take into account plan provisions (e.g., the general structure of the provisions, the extent to which the benefit is subsidized, and whether eligibility for the benefit is based on a substantial service or age-and-service requirement), … | |||
| 29:29:9.1.4.16.8.1.11.11 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.11 Guarantee of benefits relating to uniformed service. | PBGC | [74 FR 59096, Nov. 17, 2009] | This section applies to a benefit of a participant who becomes reemployed after service in the uniformed services that is covered by the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). (a) A benefit described in paragraph (b) of this section that would satisfy the requirements of § 4022.3(a) and (c) (together with any benefit earned for the period preceding military service) except for the fact that the participant was not reemployed on or before the termination date will be deemed to satisfy those requirements if PBGC determines, based upon a demonstration by the participant or otherwise, that he or she became reemployed after the termination date and entitled to the benefit under USERRA. (b) A benefit described in this paragraph (b) is a benefit attributable to a period of service commencing before the termination date and ending on the termination date during which the participant was serving in the uniformed services as defined in 38 U.S.C. 4303(13) (or was in a subsequent reemployment eligibility period) and to which the participant is entitled under USERRA. (c) Example: A plan's vesting requirement is 5 years of service with the employer. A participant has completed 4 years of service when he leaves employment for uniformed service. The plan terminates while the participant is in military service. As of the termination date, the participant would have had 5 years of service and 5 years of benefit accruals if he had remained continuously employed. Upon reemployment after the termination date but within the time limits set by USERRA, the participant would have had 6 years of service under the plan for vesting and benefit accrual purposes, if the plan had not terminated. PBGC would treat the participant as having a vested, nonforfeitable plan benefit with 5 years of vesting service and benefit accruals as of the termination date. (d) In the case of a PPA 2006 bankruptcy termination, “bankruptcy filing date” is substituted for “termination date” each place that “termination dat… | |||
| 29:29:9.1.4.16.8.1.11.2 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.2 Definitions. | PBGC | [61 FR 34028, July 1, 1996, as amended at 74 FR 59096, Nov. 17, 2009; 76 FR 34601, June 14, 2011; 79 FR 25672, May 6, 2014; 79 FR 70094, Nov. 25, 2014; 83 FR 49803, Oct. 3, 2018] | The following terms are defined in § 4001.2 of this chapter: annuity, bankruptcy filing date, Code, employer, ERISA, guaranteed benefit, majority owner, mandatory employee contributions, nonforfeitable benefit, non-PPA 2006 bankruptcy termination, normal retirement age, notice of intent to terminate, PBGC, person, plan, plan administrator, plan year, PPA 2006 bankruptcy termination, proposed termination date, statutory hybrid plan, and title IV benefit. In addition, for purposes of this part (unless otherwise required by the context): Accumulated mandatory employee contributions means mandatory employee contributions plus interest credited on those contributions under the plan, or, if greater, interest required by section 204(c) of ERISA. Benefit in pay status means that one or more benefit payments have been made or would have been made except for administrative delay. Benefit increase means any benefit arising from the adoption of a new plan or an increase in the value of benefits payable arising from an amendment to an existing plan. Such increases include, but are not limited to, a scheduled increase in benefits under a plan or plan amendment, such as a cost-of-living increase, and any change in plan provisions which advances a participant's or beneficiary's entitlement to a benefit, such as liberalized participation requirements or vesting schedules, reductions in the normal or early retirement age under a plan, an unpredictable contingent event benefit, and changes in the form of benefit payments. In the case of a plan under which the amount of benefits depends on the participant's salary and the participant receives a salary increase the resulting increase in benefits to which the participant becomes entitled will not, for the purpose of this part, be treated as a benefit increase. Similarly, in the case of a plan under which the amount of benefits depends on the participant's age or service, and the participant becomes entitled to increased benefits solely because of advancement in age or service, … | |||
| 29:29:9.1.4.16.8.1.11.3 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.3 Guaranteed benefits. | PBGC | [61 FR 34028, July 1, 1996; 61 FR 67943, Dec. 26, 1996; 76 FR 34601, June 14, 2011] | (a) General. Except as otherwise provided in this part, the PBGC will guarantee the amount, as of the termination date, of a benefit provided under a plan to the extent that the benefit does not exceed the limitations in ERISA and in subpart B, if— (1) The benefit is, on the termination date, a nonforfeitable benefit; (2) The benefit qualifies as a pension benefit as defined in § 4022.2; and (3) The participant is entitled to the benefit under § 4022.4. (b) PPA 2006 bankruptcy termination —(1) Substitution of bankruptcy filing date. In a PPA 2006 bankruptcy termination, “bankruptcy filing date” is substituted for “termination date” each place that “termination date” appears in paragraph (a) of this section. (2) Condition for entitlement satisfied between bankruptcy filing date and termination date. If a participant becomes entitled to a subsidized early retirement or other benefit before the termination date (or on or before the termination date, in the case of a requirement that a participant attain a particular age, earn a particular amount of service, become disabled, or die) but on or after the bankruptcy filing date (or after the bankruptcy filing date, in the case of a requirement that a participant attain a particular age, earn a particular amount of service, become disabled, or die), the subsidy or other benefit is not guaranteed because the participant had not satisfied the conditions for entitlement by the bankruptcy filing date. In such a case, the participant may have been put into pay status with the subsidized early retirement or other benefit by the plan administrator, because the plan was ongoing at the time. Even though the subsidy or other benefit is not guaranteed, the participant may be entitled to another benefit from PBGC (at that time or in the future). If so, PBGC will continue paying the participant a benefit, but in an amount reduced to reflect that the subsidy or other benefit is not guaranteed. PBGC will also allow a similarly situated participant who had not started receiv… | |||
| 29:29:9.1.4.16.8.1.11.4 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.4 Entitlement to a benefit. | PBGC | [61 FR 34028, July 1, 1996, as amended at 67 FR 16954, Apr. 8, 2002; 76 FR 34602, June 14, 2011] | (a) A participant or his surviving beneficiary is entitled to a benefit if under the provisions of a plan: (1) The benefit was in pay status on the termination date of the plan. (2) The benefit is payable in an optional life-annuity form of benefit that the participant or beneficiary elected on or before the termination date of the plan or, if later, the date on which PBGC became statutory trustee of the plan. (3) Except for a benefit described in paragraph (a)(2) of this section, before the termination date (or on or before the termination date, in the case of a requirement that a participant attain a particular age, earn a particular amount of service, become disabled, or die) the participant had satisfied the conditions of the plan necessary to establish the right to receive the benefit prior to such date (prior to or on such date, in the case of a requirement that a participant attain a particular age, earn a particular amount of service, become disabled, or die) other than application for the benefit, satisfaction of a waiting period described in the plan, or retirement; or (4) Absent an election by the participant, the benefit would be payable upon retirement. (5) In the case of a benefit that returns all or a portion of a participant's accumulated mandatory employee contributions upon death, the participant (or beneficiary) had satisfied the conditions of the plan necessary to establish the right to the benefit other than death or designation of a beneficiary. (b) If none of the conditions set forth in paragraph (a) of this section is met, the PBGC will determine whether the participant is entitled to a benefit on the basis of the provisions of the plan and the circumstances of the case. (c) In a PPA 2006 bankruptcy termination, “bankruptcy filing date” is substituted for “termination date” each place that “termination date” appears in paragraphs (a)(1) and (3) of this section. In making this substitution for purposes of paragraph (a)(3) of this section, the rule in § 4022.3(b)(2) (dealing with the … | |||
| 29:29:9.1.4.16.8.1.11.5 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.5 Determination of nonforfeitable benefits. | PBGC | (a) A guaranteed benefit payable to a surviving beneficiary is not considered to be forfeitable solely because the plan provides that the benefit will cease upon the remarriage of such beneficiary or his attaining a specified age. However, the PBGC will observe the provisions of the plan relating to the effect of such remarriage or attainment of such specified age on the surviving beneficiary's eligibility to continue to receive benefit payments. (b) Any other provision in a plan that the right to a benefit in pay status will cease or be suspended upon the occurrence of any specified condition does not automatically make that benefit forfeitable. In each such case the PBGC will determine whether the benefit is forfeitable. (c) A benefit guaranteed under § 4022.6 shall not be considered forfeitable solely because the plan provides that upon recovery of the participant the benefit will cease. | ||||
| 29:29:9.1.4.16.8.1.11.6 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.6 Annuity payable for total disability. | PBGC | [61 FR 34028, July 1, 1996, as amended at 67 FR 16954, Apr. 8, 2002; 76 FR 34602, June 14, 2011] | (a) Except as otherwise provided in this section, an annuity which is payable (or would be payable after a waiting period described in the plan, whether or not the participant is in receipt of other benefits during such waiting period), under the terms of a plan on account of the total and permanent disability of a participant which is expected to last for the life of the participant and which began on or before the termination date is considered to be a pension benefit. (b) In any case in which the PBGC determines that the standards for determining such total and permanent disability under a plan were unreasonable, or were modified in anticipation of termination of the plan, the disability benefits payable to a participant under such standard shall not be guaranteed unless the participant meets the standards of the Social Security Act and the regulations promulgated thereunder for determining total disability. (c) For the purpose of this section, a participant may be required, upon the request of the PBGC, to submit to an examination or to submit proof of continued total and permanent disability. If the PBGC finds that a participant is no longer so disabled, it may suspend, modify, or discontinue the payment of the disability benefit. (d) PPA 2006 bankruptcy termination. In a PPA 2006 bankruptcy termination, “bankruptcy filing date” is substituted for “termination date” in paragraph (a) of this section. | |||
| 29:29:9.1.4.16.8.1.11.7 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.7 Benefits payable in a lump sum. | PBGC | [61 FR 34028, July 1, 1996, as amended at 63 FR 38306, July 16, 1998; 65 FR 14752, 14755, Mar. 17, 2000; 67 FR 16954, Apr. 8, 2002; 79 FR 70094, Nov. 25, 2014; 85 FR 55591, Sept. 9, 2020; 88 FR 44051, July 11, 2023] | (a) Alternative benefit. Except as provided in this part, PBGC pays benefits only in annuity form. If a benefit that is guaranteed under this part is payable in a lump sum or substantially so under the terms of the plan, including an option elected under the plan by the participant before plan trusteeship, PBGC will not guarantee the benefit in such form. Instead, PBGC will guarantee the alternative benefit, if any, in the plan which provides for the payment of equal periodic installments for the life of the recipient. If the plan does not provide such an annuity, PBGC will guarantee an actuarially equivalent life annuity. (b) Payment by PBGC —(1) Payment in lump sum. Notwithstanding paragraph (a) of this section: (i) In general. If the lump-sum value of a benefit (or of an estimated benefit) payable by PBGC and calculated as of the termination date does not exceed the dollar amount specified in section 203(e)(1) of ERISA in effect as of the termination date and the benefit is not yet in pay status as of the date PBGC becomes trustee, the benefit (or estimated benefit) may be paid in a lump sum. (ii) Annuity option. If PBGC would otherwise make a lump-sum payment in accordance with paragraph (b)(1)(i) of this section and the monthly benefit (or the estimated monthly benefit) is equal to or greater than $25 (at normal retirement age and in the normal form for an unmarried participant), PBGC will provide the option to receive the benefit in the form of an annuity. (iii) Deceased participants after plan termination. If the lump-sum value of a participant's benefit calculated as of the termination date does not exceed the dollar amount specified in section 203(e)(1) of ERISA in effect as of the termination date, and the participant dies after the plan's termination date and before the benefit is in pay status, PBGC will treat the benefit as owed to the participant at the time of death and the rules in subpart F of this part apply. (iv) Payment of de minimis QPSA as lump sum or annuity. If the lump-s… | |||
| 29:29:9.1.4.16.8.1.11.8 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.8 Form of payment. | PBGC | [67 FR 16954, Apr. 8, 2002, as amended at 79 FR 70095, Nov. 25, 2014; 88 FR 44052, July 11, 2023] | (a) In general. Except as provided in § 4022.7 (relating to the payment of lump sums), the PBGC will pay benefits— (1) In the automatic PBGC form described in paragraph (b) of this section; or (2) If an optional PBGC form described in paragraph (c) of this section is elected, in that optional form. (b) Automatic PBGC form —(1) Participants —(i) Married participants. The automatic PBGC form with respect to a participant who is married at the time the benefit enters pay status is the form a married participant would be entitled to receive from the plan in the absence of an election. (ii) Unmarried participants. The automatic PBGC form with respect to a participant who is unmarried at the time the benefit enters pay status is the form an unmarried person would be entitled to receive from the plan in the absence of an election. (2) Beneficiaries —(i) QPSA beneficiaries. The automatic PBGC form with respect to the spouse of a married participant in a plan with a termination date on or after August 23, 1984, who dies before his or her benefit enters pay status is the qualified preretirement survivor annuity such a spouse would be entitled to receive from the plan in the absence of an election. The PBGC will not charge the participant or beneficiary for this survivor benefit coverage for the time period beginning on the plan's termination date (regardless of whether the plan would have charged). (ii) Alternate payees. The automatic PBGC form with respect to an alternate payee with a separate interest under a qualified domestic relations order is the form an unmarried participant would be entitled to receive from the plan in the absence of an election. (c) Optional PBGC forms —(1) Participant and beneficiary elections. A participant may elect any optional form described in paragraphs (c)(4) or (c)(5) of this section. A beneficiary described in paragraph (b)(2) of this section (a QPSA beneficiary or an alternate payee) may elect any optional form described in paragraphs (c)(4)(i) through (c)(4)(iv) … | |||
| 29:29:9.1.4.16.8.1.11.9 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | A | Subpart A—General Provisions; Guaranteed Benefits | § 4022.9 Time of payment; benefit applications and corrections. | PBGC | [67 FR 16955, Apr. 8, 2002, as amended at 68 FR 61353, Oct. 28, 2003; 88 FR 44052, July 11, 2023] | (a) Time of payment. A participant may start receiving an annuity benefit from the PBGC (subject to the PBGC's rules for starting benefit payments) on his or her Earliest PBGC Retirement Date as determined under § 4022.10 of this subchapter or, if later, the plan's termination date. (b) Elections and consents. The PBGC may prescribe the time and manner for benefit elections to be made and spousal consents to be provided. (c) Benefit applications. The PBGC is not required to accept any application for benefits not made in accordance with its forms and instructions. (d) Benefit corrections. PBGC may prescribe the time and manner for corrections of errors that affect benefit form and benefit starting dates and for changes in benefit form to mitigate the consequences of a Presidentially declared disaster. (e) Filing with the PBGC —(1) Method and date of filing. The PBGC applies the rules in subpart A of part 4000 of this chapter to determine permissible methods of filing with the PBGC under this part. Benefit applications and related submissions are treated as filed on the date received by the PBGC unless the instructions for the applicable form provide for an earlier date. Subpart C of part 4000 of this chapter provides rules for determining when the PBGC receives a submission. (2) Where to file. See § 4000.4 of this chapter for information on where to file. (3) Computation of time. The PBGC applies the rules in subpart D of part 4000 of this chapter to compute any time period for filing under this part. | |||
| 29:29:9.1.4.16.8.2.11.1 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | B | Subpart B—Limitations on Guaranteed Benefits | § 4022.21 Limitations; in general. | PBGC | [61 FR 34028, July 1, 1996, as amended at 67 FR 16956, Apr. 8, 2002; 76 FR 34602, June 14, 2011; 88 FR 44052, July 11, 2023] | (a)(1) Subject to paragraphs (b), (c), (d), and (e) of this section, the PBGC will not guarantee that part of an installment payment that exceeds the dollar amount payable as a straight life annuity commencing at normal retirement age, or thereafter, to which a participant would have been entitled under the provisions of the plan in effect on the termination date, on the basis of his credited service to such date. If the plan does not provide a straight life annuity either as its normal form of retirement benefit or as an option to the normal form, the PBGC will for purposes of this paragraph convert the plan's normal form benefit to a straight life annuity of equal actuarial value as determined by the PBGC. (2) The limitation of paragraph (a)(1) of this section shall not apply to: (i) A survivor's benefit payable as an annuity on account of the death of a participant that occurred on or before the plan's termination date and before the participant retired; (ii) A disability pension described in § 4022.6 of this part; or (iii) A benefit payable in non-level installments that in combination with Social Security, Railroad Retirement, or workman's compensation benefits yields a substantially level income if the projected income from the plan benefit over the expected life of the recipient does not exceed the value of the straight life annuity described in paragraph (a)(1) of this section. (b) The PBGC will not guarantee the payment of that part of any benefit that exceeds the limitations in section 4022(b) of ERISA and this subpart B. (c)(1) Except as provided in paragraph (c)(2) of this section, the PBGC does not guarantee a benefit payable in a lump sum (or substantially so) upon the death of a participant or his surviving beneficiary unless that benefit is substantially derived from a reduction in the pension benefit payable to the participant or surviving beneficiary. (2) Paragraphs (a) and (c)(1) of this section do not apply to that portion of accumulated mandatory employee contributions payable under a … | |||
| 29:29:9.1.4.16.8.2.11.2 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | B | Subpart B—Limitations on Guaranteed Benefits | § 4022.22 Maximum guaranteeable benefit. | PBGC | [76 FR 34602, June 14, 2011, as amended at 79 FR 70095, Nov. 25, 2014] | (a) In general. Subject to section 4022B of ERISA and part 4022B of this chapter, and except as provided in paragraph (b) of this section, benefits payable with respect to a participant under a plan shall be guaranteed only to the extent that such benefits do not exceed the actuarial value of a benefit in the form of a life annuity payable in monthly installments, commencing at age 65, equal to the lesser of— (1) One-twelfth of the participant's average annual gross income from his employer during either his highest-paid five consecutive calendar years in which he was an active participant under the plan, or if he was not an active participant throughout the entire such period, the lesser number of calendar years within that period in which he was an active participant under the plan; or (2) $750 multiplied by the fraction x/$13,200 where “x” is the Social Security contribution and benefit base determined under section 230 of the Social Security Act in effect at the termination date of the plan. (b) PPA 2006 bankruptcy termination. In a PPA 2006 bankruptcy termination— (1) The five-year period described in paragraph (a)(1) of this section shall not include any calendar years that end after the bankruptcy filing date. (2) “Bankruptcy filing date” is substituted for “termination date of the plan” in paragraph (a)(2) of this section. Example: A contributing sponsor files a bankruptcy petition in 2007. The sponsor's plan terminates in a distress termination with a termination date in 2008. PBGC will compute participants' maximum guaranteeable benefits based on the amount determined under paragraph (a)(2) for 2007 ($4,125.00 as a straight-life annuity starting at age 65). (c) Gross income. For purposes of paragraph (a)(1) of this section— (1) Gross income means “earned income” as defined in section 911(d)(2) of the Code, determined without regard to any community property laws. (2) If the plan is one to which more than one employer contributes, and during any calendar year the participant received gross … | |||
| 29:29:9.1.4.16.8.2.11.3 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | B | Subpart B—Limitations on Guaranteed Benefits | § 4022.23 Computation of maximum guaranteeable benefits. | PBGC | [61 FR 34028, July 1, 1996; 61 FR 36626, July 12, 1996; 76 FR 34603, June 14, 2011] | (a) General. Where a benefit is payable in any manner other than as a monthly benefit payable for life commencing at age 65, the maximum guaranteeable monthly amount of such benefit shall be computed by applying the applicable factor or factors set forth in paragraphs (c)-(e) of this section to the monthly amount computed under § 4022.22. In the case of a step-down life annuity, the maximum guaranteeable monthly amount of such benefit shall be computed in accordance with paragraph (f) of this section. (b) Application of adjustment factors to monthly amount computed under § 4022.22. (1) Each percentage increase or decrease computed under paragraphs (c), (d), and (e) of this section shall be added to or subtracted from a base of 1.00, and the resulting amounts shall be multiplied. (2) The monthly amount computed under § 4022.22 shall be multiplied by the product computed pursuant to paragraph (b)(1) of this section in order to determine the participant's and/or beneficiary's maximum benefit guaranteeable. (c) Annuitant's age factor. If a participant or the beneficiary of a deceased participant is entitled to and chooses to receive his benefit at an age younger than 65, the monthly amount computed under § 4022.22 shall be reduced by the following amounts for each month up to the number of whole months below age 65 that corresponds to the later of the participant's age at the termination date or his age at the time he begins to receive the benefit: For each of the 60 months immediately preceding the 65th birthday, the reduction shall be 7/12 of 1%; For each of the 60 months immediately preceding the 60th birthday, the reduction shall be 4/12 of 1%; For each of the 120 months immediately preceding the 55th birthday, the reduction shall be 2/12 of 1%; and For each succeeding 120 months period, the monthly percentage reduction shall be 1/2 of that used for the preceding 120 month period. (d) Factor for benefit payable in a form other than as a life annuity. When a benefit is in a form other than … | |||
| 29:29:9.1.4.16.8.2.11.4 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | B | Subpart B—Limitations on Guaranteed Benefits | § 4022.24 Benefit increases. | PBGC | [61 FR 34028, July 1, 1996; 61 FR 36626, July 12, 1996, as amended at 62 FR 67728, Dec. 30, 1997; 76 FR 34603, June 14, 2011; 79 FR 25672, May 6, 2014; 79 FR 70095, Nov. 25, 2014; 83 FR 49803, Oct. 3, 2018] | (a) Scope. This section applies to all benefit increases, as defined in § 4022.2, that have been in effect for less than five years preceding the termination date. (b) General rule. Benefit increases described in paragraph (a) of this section are guaranteeable only to the extent provided in § 4022.25. (c) Computation of guaranteeable benefit increases. Except as provided in paragraph (d) of this section pertaining to multiple benefit increases, the amount of a guaranteeable benefit increase shall be the amount, if any, by which the monthly benefit calculated pursuant to paragraph (c)(1) of this section (the monthly benefit provided under the terms of the plan as of the termination date, as limited by § 4022.22) exceeds the monthly benefit calculated pursuant to paragraph (c)(4) of this section (the monthly benefit which would have been payable on the termination date if the benefit provided subsequent to the increase were equivalent, as of the date of the increase, to the benefit provided prior to the increase). (1) Determine the amount of the monthly benefit payable on the termination date (or, in the case of a deferred benefit, the monthly benefit which will become payable thereafter) under the terms of the plan subsequent to the increase, using service credited to the participant as of the termination date, that is guaranteeable pursuant to § 4022.22; (2) Determine, as of the date of the benefit increase, in accordance with the provisions of § 4022.23, the factors which would be used to calculate the monthly maximum benefit guaranteeable (i) under the terms of the plan prior to the increase and (ii) under the terms of the plan subsequent to the increase. However, when the benefit referred to in paragraph (c)(2)(ii) of this section is a joint and survivor benefit deferred as of the termination date and there is no beneficiary on that date, the factors computed in paragraph (c)(2)(ii) of this section shall be determined as if the benefit were payable only to the participant. Each set of factors determi… | |||
| 29:29:9.1.4.16.8.2.11.5 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | B | Subpart B—Limitations on Guaranteed Benefits | § 4022.25 Five-year phase-in of benefit guarantee. | PBGC | [61 FR 34028, July 1, 1996, as amended at 67 FR 16956, Apr. 8, 2002; 76 FR 34603, June 14, 2011; 83 FR 49804, Oct. 3, 2018] | (a) Scope. This section applies to the guarantee of benefit increases which have been in effect for less than five years. (b) Phase-in formula. The amount of a benefit increase computed pursuant to § 4022.24 shall be guaranteed to the extent provided in the following formula: the number of years the benefit increase has been in effect, not to exceed five, multiplied by the greater of (1) 20 percent of the amount computed pursuant to § 4022.24; or (2) $20 per month. (c) Computation of years. In computing the number of years a benefit increase has been in effect, each complete 12-month period ending on or before the termination date during which such benefit increase was in effect constitutes one year. (d) Multiple benefit increases. In applying the formula contained in paragraph (b) of this section, multiple benefit increases within any 12-month period ending on or before the termination date and calculated from that date are aggregated and treated as one benefit increase. (e) Notwithstanding the provisions of paragraph (b) of this section, a benefit increase described in paragraph (a) of this section shall be guaranteed only if PBGC determines that the plan was terminated for a reasonable business purpose and not for the purpose of obtaining the payment of benefits by PBGC. (f) PPA 2006 bankruptcy termination. In a PPA 2006 bankruptcy termination, “bankruptcy filing date” is substituted for “termination date” each place that “termination date” appears in paragraphs (c) and (d) of this section. Example: A plan amendment that was adopted and effective in February 2007 increased a participant's benefit by $300 per month (as computed under § 4022.24). The contributing sponsor of the plan filed a bankruptcy petition in March 2009 and the plan has a termination date in April 2010. PBGC's guarantee of the participant's benefit increase is limited to $120 ($300 × 40%), because the increase was made more than 2 years but less than 3 years before the bankruptcy filing date. | |||
| 29:29:9.1.4.16.8.2.11.6 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | B | Subpart B—Limitations on Guaranteed Benefits | § 4022.26 Benefit guarantee for participants who are majority owners. | PBGC | [83 FR 49804, Oct. 3, 2018] | (a) Scope. This section applies to the guarantee of all benefits described in subpart A of this part (subject to the limitations in § 4022.21) with respect to participants who are majority owners at the termination date or who were majority owners at any time within the five-year period preceding that date. (b) Formula. Benefits provided by a plan are guaranteed to the extent provided in the following formula: The amount of the participant's benefit that PBGC would otherwise guarantee under section 4022 of ERISA and this part if the participant were not a majority owner, multiplied by a fraction not to exceed one, the numerator of which is the number of full years from the later of the effective date or the adoption date of the plan to the termination date, and the denominator of which is 10. (c) PPA 2006 bankruptcy termination. In a PPA 2006 bankruptcy termination, “bankruptcy filing date” is substituted for “termination date” in paragraph (b) of this section. | |||
| 29:29:9.1.4.16.8.2.11.7 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | B | Subpart B—Limitations on Guaranteed Benefits | § 4022.27 Phase-in of guarantee of unpredictable contingent event benefits. | PBGC | [79 FR 25672, May 6, 2014] | (a) Scope. This section applies to a benefit increase, as defined in § 4022.2, that is an unpredictable contingent event benefit (UCEB) and that is payable with respect to an unpredictable contingent event (UCE) that occurs after July 26, 2005. (1) Examples of benefit increases within the scope of this section include unreduced early retirement benefits or other early retirement subsidies, or other benefits to the extent that such benefits would not be payable but for the occurrence of one or more UCEs. (2) Examples of UCEs within the scope of this section include full and partial closings of plants or other facilities, and permanent workforce reductions, such as permanent layoffs. Permanent layoffs include layoffs during which an idled employee continues to earn credited service (creep-type layoff) for a period of time at the end of which the layoff is deemed to be permanent. Permanent layoffs also include layoffs that become permanent upon the occurrence of an additional event such as a declaration by the employer that the participant's return to work is unlikely or a failure by the employer to offer the employee suitable work in a specified area. (3) The examples in this section are not an exclusive list of UCEs or UCEBs and are not intended to narrow the statutory definitions, as further delineated in Treasury Regulations. (b) Facts and circumstances. If PBGC determines that a benefit is a shutdown benefit or other type of UCEB, the benefit will be treated as a UCEB for purposes of this subpart. PBGC will make such determinations based on the facts and circumstances, consistent with these regulations; how a benefit is characterized by the employer or other parties may be relevant but is not determinative. (c) Date phase-in begins. (1) The date the phase-in of PBGC's guarantee of a UCEB begins is determined in accordance with subpart B of this part. For purposes of this subpart, a UCEB is deemed to be in effect as of the latest of— (i) The adoption date of the plan provision that provides for the U… | |||
| 29:29:9.1.4.16.8.2.11.8 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | B | Subpart B—Limitations on Guaranteed Benefits | § 4022.28 Effect of tax disqualification. | PBGC | (a) General rule. Except as provided in paragraph (b) of this section, benefits accrued under a plan after the date on which the Secretary of the Treasury or his delegate issues a notice that any trust which is part of the plan no longer meets the requirements of section 401(a) of the Code or that the plan no longer meets the requirements of section 404(a) of the Code or after the date of adoption of a plan amendment that causes the issuance of such a notice shall not be guaranteed under this part. (b) Exceptions. The restriction on the guarantee of benefits set forth in paragraph (a) of this section shall not apply if: (1) The Secretary of the Treasury or his delegate issues a notice stating that the original notice referred to in paragraph (a) of this section was erroneous; (2) The Secretary of the Treasury or his delegate finds that, subsequent to the issuance of the notice referred to in paragraph (a) of this section, appropriate action has been taken with respect to the trust or plan to cause it to meet the requirements of sections 401(a) or 404(a)(2) of the Code, respectively, and issues a subsequent notice stating that the trust or plan meets such requirements; or (3) The plan amendment is revoked retroactively to its original effective date. | ||||
| 29:29:9.1.4.16.8.3.11.1 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | C | Subpart C—Section 4022(c) Benefits | § 4022.51 Determination of section 4022(c) benefits in a PPA 2006 bankruptcy termination. | PBGC | [76 FR 34603, June 14, 2011] | (a) Amount of unfunded nonguaranteed benefits. For purposes of this section, and subject to paragraph (b) of this section, a plan's amount of unfunded nonguaranteed benefits means the plan's outstanding amount of benefit liabilities, as defined in section 4001(a)(19) of ERISA, determined as of the plan's termination date. A plan's amount of unfunded nonguaranteed benefits is multiplied by the applicable recovery ratio to determine the aggregate amount to be allocated with respect to participants of the plan under section 4022(c)(1) of ERISA. (b) Benefits included in unfunded nonguaranteed benefits. For purposes of computing benefits under section 4022(c) of ERISA in a PPA 2006 bankruptcy termination, unfunded nonguaranteed benefits are benefits under a plan as of the plan's termination date that are neither guaranteed by PBGC (taking into account section 4022(g) of ERISA) nor funded by the plan's assets (taking into account section 4044(e) of ERISA). (c) Determination of recovery ratio. In a PPA 2006 bankruptcy termination, the recovery ratio under section 4022(c)(3) of ERISA is determined as follows. The numerator is based on PBGC's recoveries under section 4062, 4063, or 4064, valued as of the plan's (or plans') termination date (or dates). The denominator of the recovery ratio is based on the amount of unfunded benefit liabilities, as defined in section 4001(a)(18) of ERISA, as of the plan's (or plans') termination date (or dates). | |||
| 29:29:9.1.4.16.8.4.11.1 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | D | Subpart D—Benefit Reductions in Terminating Plans | § 4022.61 Limitations on benefit payments by plan administrator. | PBGC | [61 FR 34028, July 1, 1996, as amended at 62 FR 60428, Nov. 7, 1997; 76 FR 34604, June 14, 2011] | (a) General. When § 4041.42 of this chapter requires a plan administrator to reduce benefits, the plan administrator shall limit benefit payments in accordance with this section. (b) Accrued benefit at normal retirement. Except to the extent permitted by paragraph (d) of this section, a plan administrator may not pay that portion of a monthly benefit payable with respect to any participant that exceeds the participant's accrued benefit payable at normal retirement age under the plan. For the purpose of applying this limitation, post-retirement benefit increases, such as cost-of-living adjustments, are not considered to increase a participant's benefit beyond his or her accrued benefit payable at normal retirement age. (c) Maximum guaranteeable benefit. Except to the extent permitted by paragraph (d) of this section, a plan administrator may not pay that portion of a monthly benefit payable with respect to any participant, as limited by paragraph (b) of this section, that exceeds the maximum guaranteeable benefit under section 4022(b)(3)(B) of ERISA and § 4022.22(a)(2) of this part, adjusted for age and benefit form, for the year of the proposed termination date. In a PPA 2006 bankruptcy termination, the maximum guaranteeable benefit is determined as of the bankruptcy filing date, in accordance with §§ 4022.22(b) and 4022.23(g). (d) Estimated benefit payments. A plan administrator shall pay the monthly benefit payable with respect to each participant as determined under § 4022.62 or § 4022.63, whichever produces the higher benefit. (e) PBGC authority to modify procedures. In order to avoid abuse of the plan termination insurance system, inequitable treatment of participants and beneficiaries, or the imposition of unreasonable burdens on terminating plans, the PBGC may authorize or direct the use of alternative procedures for determining benefit reductions. (f) Examples. This section is illustrated by the following examples. (For examples addressing issues specific to a PPA 2006 bankruptcy terminat… | |||
| 29:29:9.1.4.16.8.4.11.2 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | D | Subpart D—Benefit Reductions in Terminating Plans | § 4022.62 Estimated guaranteed benefit. | PBGC | [61 FR 34028, July 1, 1996; 61 FR 36626, July 12, 1996; 76 FR 34604, June 14, 2011; 79 FR 25674, May 6, 2014; 83 FR 49804, Oct. 3, 2018] | (a) General. The estimated guaranteed benefit payable with respect to each participant who is not a majority owner is computed under paragraph (c) of this section. The estimated guaranteed benefit payable with respect to each participant who is a majority owner is computed under paragraph (d) of this section. (b) Rules for determining benefits. For the purposes of determining entitlement to a benefit and the amount of the estimated benefit under this section, the following rules apply: (1) Non-PPA 2006 bankruptcy termination. In a non-PPA 2006 bankruptcy termination: (i) For benefits payable with respect to a participant who is in pay status on or before the proposed termination date, the plan administrator shall use the participant's age and benefit payable under the plan as of the proposed termination date. (ii) For benefits payable with respect to a participant who enters pay status after the proposed termination date, the plan administrator shall use the participant's age as of the benefit commencement date and his service and compensation as of the proposed termination date. (2) PPA 2006 bankruptcy termination. In a PPA 2006 bankruptcy termination: (i) For benefits payable with respect to a participant who is in pay status on or before the bankruptcy filing date, the plan administrator shall use the participant's age and benefit payable under the plan as of the bankruptcy filing date. (ii) For benefits payable with respect to a participant who enters pay status after the bankruptcy filing date, the plan administrator shall use the participant's age as of the benefit commencement date and his service and compensation as of the bankruptcy filing date. (3) Participants with new benefits or benefit improvements. For the purpose of determining the estimated guaranteed benefit under paragraph (c) of this section, only new benefits and benefit improvements that affect the benefit of the participant or beneficiary for whom the determination is made are taken into account. (4) Limitations on estim… | |||
| 29:29:9.1.4.16.8.4.11.3 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | D | Subpart D—Benefit Reductions in Terminating Plans | § 4022.63 Estimated asset-funded benefit. | PBGC | [61 FR 34028, July 1, 1996; 61 FR 36626, July 12, 1996, as amended at 76 FR 34604, June 14, 2011; 83 FR 49805, Oct. 3, 2018; 89 FR 48299, June 6, 2024] | (a) General. If the conditions specified in paragraph (b) exist, the plan administrator shall determine each participant's estimated asset-funded benefit. The estimated asset-funded benefit payable with respect to each participant who is not a majority owner is computed under paragraph (c) of this section. The estimated asset-funded benefit payable with respect to each participant who is a majority owner is computed under paragraph (d) of this section. (b) Conditions for use of this section. The conditions set forth in this paragraph must be satisfied in order to make use of the procedures set forth in this section. If the specified conditions exist, estimated asset-funded benefits must be determined in accordance with these procedures (or in accordance with alternative procedures authorized by PBGC under § 4022.61(f)) for each participant and beneficiary whose benefit under the plan exceeds the limitations contained in § 4022.61(b) or (c) or who is a majority owner or the beneficiary of a majority owner. If the specified conditions do not exist, title IV benefits may be estimated by the plan administrator in accordance with procedures authorized by PBGC, but no such estimate is required. The conditions are as follows: (1) An actuarial valuation of the plan has been performed for a plan year beginning not more than eighteen months before the proposed termination date. If the interest rate used to value plan liabilities in this valuation exceeded the applicable valuation interest rates and factors under § 4044.54 of this chapter in effect on the proposed termination date, the value of benefits in pay status and the value of vested benefits not in pay status on the valuation date must be converted to PBGC's valuation rates and factors. (2) The plan has been in effect for at least five full years before the proposed termination date, and the most recent actuarial valuation demonstrates that the value of plan assets, reduced by employee contributions remaining in the plan and interest credited thereon under th… | |||
| 29:29:9.1.4.16.8.5.11.1 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | E | Subpart E—PBGC Recoupment and Reimbursement of Benefit Overpayments and Underpayments | § 4022.81 General rules. | PBGC | [63 FR 29354, May 29, 1998, as amended at 67 FR 16956, Apr. 8, 2002; 76 FR 34604, June 14, 2011] | (a) Recoupment of benefit overpayments. If at any time the PBGC determines that net benefits paid with respect to any participant in a PBGC-trusteed plan exceed the total amount to which the participant (and any beneficiary) is entitled up to that time under title IV of ERISA, and the participant (or beneficiary) is, as of the termination date, entitled to receive future benefit payments, the PBGC will recoup the net overpayment in accordance with paragraph (c) of this section and § 4022.82. Notwithstanding the previous sentence, the PBGC may, in its discretion, recover overpayments by methods other than recouping in accordance with the rules in this subpart. The PBGC will not normally do so unless net benefits paid after the termination date exceed those to which a participant (and any beneficiary) is entitled under the terms of the plan before any reductions under subpart D. (b) Reimbursement of benefit underpayments. If at any time the PBGC determines that net benefits paid with respect to a participant in a PBGC-trusteed plan are less than the amount to which the participant (and any beneficiary) is entitled up to that time under title IV of ERISA, the PBGC will reimburse the participant or beneficiary for the net underpayment in accordance with paragraph (c) of this section and § 4022.83. (c) Amount to be recouped or reimbursed. In order to determine the amount to be recouped from, or reimbursed to, a participant (or beneficiary), the PBGC will calculate a monthly account balance for each month ending after the termination date. The PBGC will start with a balance of zero as of the end of the calendar month ending immediately prior to the termination date and determine the account balance as of the end of each month thereafter as follows: (1) Debit for overpayments. The PBGC will subtract from the account balance the amount of overpayments made in that month. Only overpayments made on or after the latest of the proposed termination date, the termination date, or, if no notice of intent to terminate… | |||
| 29:29:9.1.4.16.8.5.11.2 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | E | Subpart E—PBGC Recoupment and Reimbursement of Benefit Overpayments and Underpayments | § 4022.82 Method of recoupment. | PBGC | [63 FR 29354, May 29, 1998, as amended at 76 FR 34604, June 14, 2011] | (a) Future benefit reduction. The PBGC will recoup net overpayments of benefits by reducing the amount of each future benefit payment to which the participant or any beneficiary is entitled by the fraction determined under paragraphs (a)(1) and (a)(2) of this section, except that benefit reduction will cease when the amount (without interest) of the net overpayment is recouped. Notwithstanding the preceding sentence, the PBGC may accept repayment ahead of the recoupment schedule. (1) Computation. The PBGC will determine the fractional multiplier by dividing the amount of the net overpayment by the present value of the benefit payable with respect to the participant under title IV of ERISA. (i) Non-PPA 2006 bankruptcy termination. In a non-PPA bankruptcy termination, the PBGC will determine the present value of the benefit to which a participant or beneficiary is entitled under title IV of ERISA as of the termination date, using the PBGC interest rates and factors in effect on that date. (ii) PPA 2006 bankruptcy termination. In a PPA 2006 bankruptcy termination, PBGC will determine the amount of benefit payable with respect to the participant under title IV of ERISA taking into account the limitations in sections 4022(g) and 4044(e) (and corresponding provisions of these regulations), and will determine the present value of that amount as of the termination date, using PBGC interest rates and factors in effect on the termination date. (iii) Facts and circumstances. The PBGC may, however, utilize a different date of determination if warranted by the facts and circumstances of a particular case. (2) Limitation on benefit reduction. Except as provided in paragraph (a)(1) of this section, the PBGC will reduce benefits with respect to a participant or beneficiary by no more than the greater of— (i) Ten percent per month; or (ii) The amount of benefit per month in excess of the maximum guaranteeable benefit payable under section 4022(b)(3)(B) of ERISA, determined without adjustment for age and benefit… | |||
| 29:29:9.1.4.16.8.5.11.3 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | E | Subpart E—PBGC Recoupment and Reimbursement of Benefit Overpayments and Underpayments | § 4022.83 PBGC reimbursement of benefit underpayments. | PBGC | [61 FR 34028, July 1, 1996, as amended at 63 FR 29355, May 29, 1998] | When the PBGC determines that there has been a net benefit underpayment made with respect to a participant, it shall pay the participant or beneficiary the amount of the net underpayment, determined in accordance with § 4022.81(c), in a single payment. | |||
| 29:29:9.1.4.16.8.6.11.1 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | F | Subpart F—Certain Payments Owed Upon Death | § 4022.91 When do these rules apply? | PBGC | (a) Types of benefits. Provided the conditions in paragraphs (b) and (c) of this section are satisfied, these rules (§§ 4022.91 through 4022.95) apply to any benefits we may owe you (including benefits we owe you because your plan owed them) at the time of your death, such as a payment of a lump-sum benefit that we calculated as of your plan's termination date but have not yet paid you or a back payment to reimburse you for monthly underpayments. We may owe you benefits at the time of your death if— (1) You are a participant in a terminated plan; (2) You are a beneficiary (including an alternate payee) of a participant; or (3) You are a designee or other payee (e.g., a participant's next of kin) under these rules, as explained in § 4022.93. (b) Payments do not continue after death. These rules apply only if payments do not continue after your death. (If payments continue after your death, we will make up any underpayment to you at the time of your death under the rule in § 4022.81(d)(2)(i) by paying it to the person who is entitled to receive those continuing payments.) Payments do not continue after your death if— (1) Your benefit is not in the form of a joint-and-survivor or other annuity under which payments may continue after your death (e.g., a certain-and-continuous annuity); (2) Your benefit is in the form of a joint-and-survivor annuity and the person designated to receive survivor benefits died before you; or (3) Your benefit is in the form of another type of annuity under which payments may continue after your death (e.g., a certain-and-continuous annuity) but you die with no payments owed for future periods. (c) Time of death. These rules apply only if you die— (1) On or after the date we take over your plan (as trustee); or (2) Before the date we take over your plan, to the extent that, by that date, the plan administrator has not paid all benefits owed to you at the time of your death. (d) Effect of plan or will. These rules apply even if there is a contrary provision in a plan or … | ||||
| 29:29:9.1.4.16.8.6.11.2 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | F | Subpart F—Certain Payments Owed Upon Death | § 4022.92 What definitions do I need to know for these rules? | PBGC | You need to know three definitions from § 4001.2 of this chapter (PBGC, person, and plan) and the following definitions: “We” means the PBGC. “You” means the person to whom we may owe benefits at the time of death. | ||||
| 29:29:9.1.4.16.8.6.11.3 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | F | Subpart F—Certain Payments Owed Upon Death | § 4022.93 Who will get benefits PBGC may owe me at the time of my death? | PBGC | [67 FR 16957, Apr. 8, 2002, as amended at 88 FR 44052, July 11, 2023] | (a) In general. Except as provided in paragraphs (b), (c), and (d) of this section, we will pay any benefits we owe you at the time of your death to the person(s) surviving you in the following order— (1) Designee with the PBGC. The person(s) you designated with us to get any benefits we may owe you at the time of your death. See § 4022.94 for information on designating with us. (2) Spouse. Your spouse. We will consider a person to whom you are married to be your spouse even if you and that person are separated, unless a decree of divorce or annulment has been entered in a court. (3) Children. Your children and descendants of your deceased children. (i) Adopted children. In determining who is a child or descendant, an adopted child is treated the same way as a natural child. (ii) Child dies before parent. If one of your children dies before you, any of your grandchildren through that deceased child will equally divide that deceased child's share; if one of your grandchildren through that deceased child dies before that deceased child, any of your great-grandchildren through that deceased grandchild will equally divide that deceased grandchild's share; and so on. (4) Parents. Your parents. A parent includes an adoptive parent. (5) Estate. Your estate, provided your estate is open. (6) Next of kin. Your next of kin in accordance with applicable state law. (b) Pre-trusteeship deaths. If you die before the date we take over your plan and, by that date, the plan administrator has not paid all benefits owed to you at the time of your death, we will pay any benefits we owe you at the time of your death to the person(s) designated by or under the plan to get those benefits (provided the designation clearly applies to those benefits). If there is no such designation, we will pay those benefits to your spouse, children, parents, estate, or next of kin under the rules in paragraphs (a)(2) through (a)(6) of this section. (c) Deaths shortly after trusteeship. If you die within 180 days after th… | |||
| 29:29:9.1.4.16.8.6.11.4 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | F | Subpart F—Certain Payments Owed Upon Death | § 4022.94 What are the PBGC's rules on designating a person to get benefits the PBGC may owe me at the time of my death? | PBGC | (a) When you may designate. At any time on or after the date we take over your plan, you may designate with us who will get any benefits we owe you at the time of your death. (b) Change of designee. If you want to change the person(s) you designate with us, you must submit another designation to us. (c) If your designee dies before you —(1) In general. If the person(s) you designate with us dies before you or at the same time as you, we will treat you as not having designated anyone with us (unless you named an alternate designee who survives you). Therefore, you should keep your designation with us current. (2) Simultaneous deaths. If you and a person you designated die as a result of the same event, we will treat you and that person as having died at the same time, provided you and that person die within 30 days of each other. | ||||
| 29:29:9.1.4.16.8.6.11.5 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | F | Subpart F—Certain Payments Owed Upon Death | § 4022.95 Examples. | PBGC | The following examples show how the rules in §§ 4022.91 through 4022.94 apply. For examples on how these rules apply in the case of a certain-and-continuous annuity, see § 4022.104. At the time of his death, Charlie was receiving payments under a joint-and-survivor annuity. Charlie designated Ellen to receive survivor benefits under his joint-and-survivor annuity. We underpaid Charlie for periods before his death. At the time of his death, we owed Charlie a back payment to reimburse him for those underpayments. (a) Example 1: where surviving beneficiary is alive at participant's death. Ellen survived Charlie. As explained in § 4022.91(b), because Ellen is entitled to survivor benefits under the joint-and-survivor annuity, we would pay Ellen the back payment. (b) Example 2: where surviving beneficiary predeceases participant. Ellen died before Charlie. As explained in §§ 4022.91(b) and 4022.93, because benefits do not continue after Charlie's death under the joint-and-survivor annuity, we would pay the back payment to the person(s) Charlie designated to receive any payments we might owe him at the time of his death. If Charlie did not designate anyone to receive those payments or his designee died before him, we would pay the back payment to the person(s) surviving Charlie in the following order: spouse, children, parents, estate and next of kin. | ||||
| 29:29:9.1.4.16.8.7.11.1 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | G | Subpart G—Certain-and-Continuous and Similar Annuity Payments Owed for Future Periods After Death | § 4022.101 When do these rules apply? | PBGC | (a) In general. These rules (§§ 4022.101 through 4022.104) apply only if you die— (1) Required payments for future periods. Without having received all required payments for future periods under a form of annuity promising that, regardless of a participant's death, there will be annuity payments for a certain period of time (e.g., a certain-and-continuous annuity) or until a certain amount is paid (e.g., a cash-refund annuity or installment-refund annuity); (2) No surviving beneficiary. Without a surviving beneficiary designated to receive the payments described in paragraph (a)(1) of this section; and (3) Time of death. (i) On or after the date we take over your plan (as trustee); or (ii) Before the date we take over your plan, to the extent that, by that date, the plan administrator has not paid any required payments for future periods. (b) Effect of plan or will. These rules apply even if there is a contrary provision in a plan or will. (c) Payments owed at time of death. See §§ 4022.91 through 4022.95 for rules that apply to benefits we may owe you at the time of your death, such as a correction for monthly underpayments. | ||||
| 29:29:9.1.4.16.8.7.11.2 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | G | Subpart G—Certain-and-Continuous and Similar Annuity Payments Owed for Future Periods After Death | § 4022.102 What definitions do I need to know for these rules? | PBGC | You need to know three definitions from § 4001.2 of this chapter (PBGC, person, and plan) and the following definitions: “We” means the PBGC. “You” means the person who might die— (1) Without having received all required payments for future periods under a form of annuity promising that, regardless of a participant's death, there will be annuity payments for a certain period of time (e.g., a certain-and-continuous annuity) or until a certain amount is paid (e.g., a cash-refund annuity or installment-refund annuity); and (2) Without a surviving beneficiary designated to receive the payments described in paragraph (1) of this definition. | ||||
| 29:29:9.1.4.16.8.7.11.3 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | G | Subpart G—Certain-and-Continuous and Similar Annuity Payments Owed for Future Periods After Death | § 4022.103 Who will get benefits if I die when payments for future periods under a certain-and-continuous or similar annuity are owed upon my death? | PBGC | If you die at a time when payments are owed for future periods under a form of annuity promising that, regardless of a participant's death, there will be annuity payments for a certain period of time (e.g., a certain-and-continuous annuity) or until a certain amount is paid (e.g., a cash-refund annuity or installment-refund annuity), and there is no surviving beneficiary designated to receive such payments, we will pay the remaining payments to the person determined under the rules in § 4022.93. | ||||
| 29:29:9.1.4.16.8.7.11.4 | 29 | Labor | XL | D | 4022 | PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS | G | Subpart G—Certain-and-Continuous and Similar Annuity Payments Owed for Future Periods After Death | § 4022.104 Examples. | PBGC | The following examples show how the rules in §§ 4022.101 through 4022.103 and 4022.91 through 4022.94 apply in the case of a certain-and-continuous annuity. (a) C&C annuity with no underpayment. At the time of his death, Charlie was receiving payments (in the correct amount) under a 5-year certain-and-continuous annuity. Charlie designated Ellen to receive any payments we might owe for periods after his death (but did not designate an alternate beneficiary to receive those payments in case Ellen died before him). Charlie died with three years of payments remaining. (1) Example 1: where surviving beneficiary predeceases participant. Ellen died before Charlie. As explained in §§ 4022.103 and 4022.93, we would pay the remaining three years of payments to the person(s) surviving Charlie in the following order: spouse, children, parents, estate and next of kin. (2) Example 2: where surviving beneficiary dies during certain period. Ellen survived Charlie and lived another year. We pay Ellen one year of payments. As explained in §§ 4022.103 and 4022.93, we would pay the remaining two years of payments to the person Ellen designated to receive any payments we might owe for periods after Ellen's death. If Ellen did not designate anyone to receive those payments or her designee died before her, we would pay the remaining year of payments to the person(s) surviving Ellen in the following order: spouse, children, parents, estate, next of kin. (b) C&C annuity with underpayment. At the time of his death, Charlie was receiving payments under a 5-year certain-and-continuous annuity. Charlie designated Ellen to receive any payments we might owe for periods after his death. We underpaid Charlie for periods before his death. At the time of his death, we owed Charlie a back payment to reimburse him for those underpayments. (1) Example 3: where participant dies during certain period. Charlie died with three years of payments remaining. Ellen survived Charlie and lived at least another three years. We pay El… |
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