4043.23—Active participant reduction.
(a) Reportable event.
A reportable event occurs when the number of active participants under a plan is reduced to less than 80 percent of the number of active participants at the beginning of the plan year, or to less than 75 percent of the number of active participants at the beginning of the previous plan year.
(b) Initial information required.
In addition to the information in § 4043.3(b), the notice shall include—
(2)
The number of active participants at the date the reportable event occurs, at the beginning of the plan year, and at the beginning of the prior plan year.
(c) Waivers—
(1) Small plan.
Notice is waived if the plan has fewer than 100 participants at the beginning of either the current or the previous plan year.
(i) No variable rate premium.
No variable rate premium is required to be paid for the plan for the event year;
(ii) $1 million unfunded vested benefits.
As of the testing date for the event year, the plan has less than $1 million in unfunded vested benefits; or
(iii) No unfunded vested benefits.
As of the testing date for the event year, the plan would have no unfunded vested benefits if unfunded vested benefits were determined in accordance with the assumptions and methodology in § 4010.4(b)(2) of this chapter.
(i)
The active participant reduction would not be reportable if only those active participant reductions resulting from cessation of operations at one or more facilities were taken into account; and
(ii)
As of the testing date for the event year, the fair market value of the plan's assets is at least 80 percent of the plan's vested benefits amount.
(1) Form 1 extension.
30 days after the plan's variable rate premium filing due date for the event year if a waiver under any of paragraphs (c)(2)(i) through (c)(2)(iii) or (c)(3) of this section would apply if “the plan year preceding the event year” were substituted for “the event year”;
(2) Form 5500 extension.
30 days after the plan's Form 5500 due date that next follows the date the reportable event occurs, provided the event would not be reportable counting only those participant reductions resulting from cessation of operations at a single facility; and
(3) Form 1-ES extension.
The due date for the Form 1-ES for the plan year following the event year if—
(ii)
The event would not be reportable counting only those participant reductions resulting from cessation of operations at a single facility; and
(iii)
The participant reduction represents no more than 20 percent of the total active participants (at the beginning of the plan year(s) in which the reduction occurs) in all plans maintained by any member of the plan's controlled group.
(e) Determination of the number of active participants—
(1) Determination date.
The number of active participants at the beginning of a plan year may be determined by using the number of active participants at the end of the previous plan year.