CFR > Title 29 - Labor > SUBTITLE B—Regulations Relating to Labor > CHAPTER XL—PENSION BENEFIT GUARANTY CORPORATION (parts 4000 to 4907) > SUBCHAPTER J—INSOLVENCY, REORGANIZATION, TERMINATION, AND OTHER RULES APPLICABLE TO MULTIEMPLOYER PLANS (parts 4231 to 4281) > PART 4245—NOTICE OF INSOLVENCY > 4245.3—Notice of insolvency.

4245.3—Notice of insolvency.

(a) Requirement of notice. A plan sponsor of a multiemployer plan in reorganization that determines under section 4245 (b)(1), (d)(1) or (d)(2) of ERISA that the plan's available resources are or may be insufficient to pay benefits when due for a plan year shall so notify the PBGC and the interested parties, as defined in paragraph (e) of this section. A single notice may cover more than one plan year. The notices shall be delivered in the manner and within the time prescribed in this section and shall contain the information described in § 4245.4.
(b) When delivered. A plan sponsor shall mail or otherwise deliver the notices of insolvency no later than 30 days after it determines that the plan is or may become insolvent, as described in paragraph (a) of this section. However, the notice to participants and beneficiaries in pay status may be delivered concurrently with the first benefit payment made more than 30 days after the determination of insolvency.
(c) Delivery to PBGC— (1) Method of filing. The PBGC applies the rules in subpart A of part 4000 of this chapter to determine permissible methods of filing the notice of insolvency with the PBGC under this part.
(2) Filing date. The PBGC applies the rules in subpart C of part 4000 of this chapter to determine the date that a notice of insolvency under this part was filed with the PBGC.
(d) Delivery to interested parties— (1) Method of issuance. The PBGC applies the rules in subpart B of part 4000 of this chapter to determine permissible methods of issuance of the notice of insolvency to interested parties. In addition to the methods permitted under subpart B of part 4000, the plan sponsor may notify interested parties, other than participants and beneficiaries who are in pay status when the notice is required to be delivered, by posting the notice at participants' work sites or publishing the notice in a union newsletter or in a newspaper of general circulation in the area or areas where participants reside. Notice to a participant shall be deemed notice to that participant's beneficiary or beneficiaries.
(2) Issuance date. The PBGC applies the rules in subpart C of part 4000 of this chapter to determine the date that the notice of insolvency was issued.
(e) Interested parties. For purposes of this part, the term “interested parties” means—
(1) Employers required to contribute to the plan;
(2) Employee organizations that, for collective bargaining purposes, represent plan participants employed by such employers; and
(3) Plan participants and beneficiaries.

Code of Federal Regulations

[61 FR 34115, July 1, 1996, as amended at 68 FR 61357, Oct. 28, 2003]