# Reorganization, Renumbering, and Reinvention of Regulations > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A96-16398 ## Record - **Collection:** Federal Register - **Document type:** Rule - **Published:** July 1, 1996 - **Citation:** 61 FR 34002 ## Text SUMMARY: In accordance with the President's Regulatory Reinvention Initiative, the Pension Benefit Guaranty Corporation is reorganizing, renumbering, and reinventing its regulations. The amendments will clarify and simplify the PBGC's regulations and make them easier to use. EFFECTIVE DATE: July 1, 1996. FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General Counsel, or Marc L. Jordan, Attorney, Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005-4026, 202-326-4024 (202-326-4179 for TTY and TDD). SUPPLEMENTARY INFORMATION: The PBGC is renumbering and reorganizing its regulations to make it easier for practitioners and the public to research and use the rules under Title IV of the Employee Retirement Income Security Act of 1974. Under the new approach, the regulations will be numbered to track the statutory sections they implement. On July 8, 1994 (at 59 FR 35067), the PBGC published a notice in the Federal Register inviting public comment on a proposal to reorganize and renumber its regulations to track Title IV. No comments were received. On March 4, 1995, the President issued his Regulatory Reinvention Initiative, directing Federal agencies to eliminate or revise those regulations that are outdated or otherwise in need of reform. The PBGC is reorganizing, renumbering, and reinventing its regulations. The reinvention is limited to nonsubstantive corrections and clarifications and deletion of material that is unnecessary or that has been substantially superseded (or is no longer applicable). For example, the reinvented regulations omit existing provisions dealing with the allocation of residual assets (part 2618, subpart C) because these provisions were largely superseded by changes in section 4044(d) of ERISA made by the Pension Protection Act of 1987. Similarly, the provision regarding interest rate assumptions for paying lump sums (existing Sec. 2619.26(b)(2)) has been eliminated because of changes in section 417(e)(3) of the Internal Revenue Code and section 205(g)(3) of ERISA made by the Retirement Equity Act of 1984, the Tax Reform Act of 1986, and the Retirement Protection Act of 1994. To clarify the rules on missing participants in terminating plans, nonsubstantive language changes have been made in the missing participants regulation (existing part 2629, new part 4050), related sections in the termination regulations (existing parts 2616 and 2617, new part 4041), and in the definition of ``distribution date'' in new Sec. 4001.2. The new regulation on premium rates (part 4006, which contains portions of existing part 2610) omits the variable-rate premium cap reduction rules (which have expired) and the cap rules themselves (repealed by the Retirement Protection Act of 1994). The rule reflects new provisions in the Retirement Protection Act of 1994 dealing with regulated public utility plans. In some cases, provisions that may have been partially superseded by statutory changes have been retained pending revision--for example, the regulation on allocation of assets in terminating single-employer plans (renumbered part 4044). A note at the beginning of part 4044 and reminders within the part alert readers that some regulatory material republished in part 4044 must be read in the light of these other changes in the law. The PBGC welcomes public comment on this rule to correct any editorial errors--e.g., in cross-references--that may have been overlooked due to the magnitude of the revision project. Under this final rule, the PBGC's regulations will be moved from chapter XXVI to chapter XL of title 29 of the CFR. Sections will be numbered in the 4000's. Part 4000 consists of finding aids--tables correlating provisions of old chapter XXVI and new chapter XL. Part 4001 contains definitions of terms used throughout the PBGC's regulations. A table of contents showing the rest of the new structure, along with the full text of the revised regulations, is set forth below. Rulemaking Requirements and E.O. 12866 The PBGC has determined that this action is not a ``significant regulatory action'' under the criteria set forth in Executive Order 12866. The PBGC has determined that the notice and comment requirements of the Administrative Procedure Act (5 U.S.C. 553(b)) do not apply to this final rule. The PBGC previously notified the public of the primary changes made by this rule and provided an opportunity for public comment. None of the amendments in this rule (including those that clarify the regulations or remove or replace provisions made obsolete by the passage of time or by subsequent statutory or regulatory changes) affects applicable substantive legal requirements. Therefore, the PBGC has, for good cause, found that further notice and public procedure thereon are unnecessary. For the same reasons, the PBGC finds pursuant to section 553(d)(3) of the Administrative Procedure Act (5 U.S.C. 553(d)(3)) that there is good cause to make this rule effective less than 30 days from the date of its publication. The PBGC also certifies that the amendments in this regulation will not have a significant economic impact on a substantial number of small entities. Accordingly, as provided in section 605(b) of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), sections 603 and 604 of the Regulatory Flexibility Act do not apply. None of the amendments in this rule affects applicable substantive legal requirements. Issued in Washington, DC, on the 24th day of June 1996. Robert B. Reich, Chairman, Board of Directors, Pension Benefit Guaranty Corporation. Issued on the date set forth above pursuant to a resolution of the Board of Directors authorizing its Chairman to issue this final rule. James J. Keightley, Secretary, Board of Directors Pension Benefit Guaranty Corporation. List of Subjects in 29 CFR Chapters XXVI and XL Parts 2601 and 4002 Authority delegations (Government agencies), Organization and functions (Government agencies). Part 2602 Conflict of interests, Government employees, Penalties, Political activities (Government employees), Production and disclosure of information, Testimony. Parts 2603 and 4901 Freedom of Information. Parts 2604 and 4906 Administrative practice and procedure, Conflict of interests, Penalties. Parts 2606 and 4003 Administrative practice and procedure, Organization and functions [[Page 34003]] (Government agencies), Pension insurance, Pensions. Parts 2607 and 4902 Privacy. Parts 2608 and 4907 Blind, Civil rights, Deaf, Disabled, Discrimination against handicapped, Equal employment opportunity, Federal buildings and facilities, Handicapped, Nondiscrimination, Physically handicapped. Parts 2609 and 4903 Administrative practice and procedure, Claims, Organization and functions (Government agencies). Part 2610 and 4007 Penalties, Pension insurance, Pensions, Reporting and recordkeeping requirements. Parts 2611, 2615, 2616, 2617, 2623, 2642, 2674, 4022, 4041, 4041A, 4065, 4211, and 4245 Pension insurance, Pensions, Reporting and recordkeeping requirements. Parts 2612 and 4068 Business and industry, Pension insurance, Pensions, Small businesses. Parts 2613, 2618, 2619, 2620, 2621, 2640, 2670, 4006, 4022, 4022B, 4044, and 4061 Pension insurance, Pensions. Parts 2622, 2643, 4062, 4063, 4064, and 4204 Business and industry, Pension insurance, Pensions, Reporting and recordkeeping requirements, Small businesses. Parts 2641 and 4221 Business and industry, Pensions, Small businesses. Parts 2644, 2645, 2647, 2649, 2676, 2677, 4203, 4206, 4207, and 4220 Pensions. Parts 2627, 2628, 2629, 2646, 2648, 2672, 2675, 4001, 4010, 4050, 4208, 4219, 4231, 4261, and 4281 Pensions, Reporting and recordkeeping requirements. Part 2673 Pension insurance. Part 4000 Administrative practice and procedure, Authority delegations (Government agencies), Blind, Business and industry, Civil rights, Claims, Conflict of interests, Deaf, Disabled, Discrimination against handicapped, Equal employment opportunity, Federal buildings and facilities, Freedom of Information, Government employees, Handicapped, Nondiscrimination, Organization and functions (Government agencies), Penalties, Pension insurance, Pensions, Physically handicapped, Political activities (Government employees), Privacy, Production and disclosure of information, Reporting and recordkeeping requirements, Small businesses, Testimony. Part 4001 Business and industry, Organization and functions (Government agencies), Pension insurance, Pensions, Small businesses. Part 4903 Conflict of interests, Government employees, Penalties, Political activities (Government employees). Part 4904 Government employees, Penalties, Production and disclosure of information, Testimony. For the reasons set forth above, the PBGC is amending subtitle B of title 29 of the Code of Federal Regulations as follows: CHAPTER XXVI--[REMOVED] 1. Chapter XXVI is removed. 2. Chapter XL is added to read as follows: CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION SUBCHAPTER A--GENERAL Part 4000--Finding Aids Sec. 4000.1 Distribution table. 4000.2 Derivation table. Authority: 29 U.S.C. 1302(b)(3). Part 4001--Terminology Sec. 4001.1 Purpose and scope. 4001.2 Definitions. 4001.3 Trades or businesses under common control; controlled groups. Authority: 29 U.S.C. 1301(a), 1301(b)(1), 1302(b)(3). Part 4002--Bylaws of the Pension Benefit Guaranty Corporation Sec. 4002.1 Name. 4002.2 Offices. 4002.3 Board of Directors. 4002.4 Chairman. 4002.5 Quorum. 4002.6 Meetings. 4002.7 Place of meetings; use of conference call communications equipment. 4002.8 Alternate voting procedure. 4002.9 Amendments. Authority: 29 U.S.C. 1302(f). Part 4003--Rules for Administrative Review of Agency Decisions Subpart A--General Provisions Sec. 4003.1 Purpose and scope. 4003.2 Definitions. 4003.3 PBGC assistance in obtaining information. 4003.4 Extension of time. 4003.5 Non-timely request for review. 4003.6 Representation. 4003.7 Exhaustion of administrative remedies. 4003.8 Request for confidential treatment. 4003.9 Filing of documents. 4003.10 Computation of time. Subpart B--Initial Determinations 4003.21 Form and contents of initial determinations. 4003.22 Effective date of determinations. Subpart C--Reconsideration of Initial Determinations 4003.31 Who may request reconsideration. 4003.32 When to request reconsideration. 4003.33 Where to submit request for reconsideration. 4003.34 Form and contents of request for reconsideration. 4003.35 Final decision on request for reconsideration. Subpart D--Administrative Appeals 4003.51 Who may appeal or participate in appeals. 4003.52 When to file. 4003.53 Where to file. 4003.54 Contents of appeal. 4003.55 Opportunity to appear and to present witnesses. 4003.56 Consolidation of appeals. 4003.57 Appeals affecting third parties. 4003.58 Powers of the Appeals Board. 4003.59 Decision by the Appeals Board. 4003.60 Referral of appeal to the Executive Director. Authority: 29 U.S.C. 1302(b)(3). SUBCHAPTER B--PREMIUMS Part 4006--Premium Rates Sec. 4006.1 Purpose and scope. 4006.2 Definitions. 4006.3 Premium rate. 4006.4 Determination of unfunded vested benefits. 4006.5 Exemptions and special rules. Authority: 29 U.S.C. 1302(b)(3), 1306, 1307. Part 4007--Payment of Premiums Sec. 4007.1 Purpose and scope. 4007.2 Definitions. 4007.3 Filing requirement and forms. 4007.4 Filing address. 4007.5 Date of filing. 4007.6 Computation of time. 4007.7 Late payment interest charges. 4007.8 Late payment penalty charges. 4007.9 Coverage for guaranteed basic benefits. [[Page 34004]] 4007.10 Recordkeeping requirements; PBGC audits. 4007.11 Due dates. 4007.12 Liability for single-employer premiums. Authority: 29 U.S.C. 1302(b)(3), 1306, 1307. SUBCHAPTER C--CERTAIN REPORTING AND DISCLOSURE REQUIREMENTS Part 4010--Annual Financial and Actuarial Information Reporting Sec. 4010.1 Purpose and scope. 4010.2 Definitions. 4010.3 Filing requirement. 4010.4 Filers. 4010.5 Information year. 4010.6 Information to be filed. 4010.7 Identifying information. 4010.8 Plan actuarial information. 4010.9 Financial information. 4010.10 Due date and filing with the PBGC. 4010.11 Waivers and extensions. 4010.12 Confidentiality of information submitted. 4010.13 Penalties. 4010.14 OMB control number. Authority: 29 U.S.C. 1302(b)(3); 29 U.S.C. 1310. Part 4011--Disclosure to Participants Sec. 4011.1 Purpose and scope. 4011.2 Definitions. 4011.3 Notice requirement. 4011.4 Small plan rules. 4011.5 Exemption for new and newly-covered plans. 4011.6 Mergers, consolidations, and spinoffs. 4011.7 Persons entitled to receive notice. 4011.8 Time of notice. 4011.9 Manner of issuance of notice. 4011.10 Form of notice. 4011.11 OMB control number. Appendix A to part 4011--Model participant notice. Appendix B to part 4011--Table of maximum guaranteed benefits. Authority: 29 U.S.C. 1302(b)(3), 1311. SUBCHAPTER D--COVERAGE AND BENEFITS Part 4022--Benefits Payable in Terminated Single-Employer Plans Subpart A--General Provisions; Guaranteed Benefits Sec. 4022.1 Purpose and scope. 4022.2 Definitions. 4022.3 Guaranteed benefits. 4022.4 Entitlement to a benefit. 4022.5 Determination of nonforfeitable benefits. 4022.6 Annuity payable for total disability. 4022.7 Benefits payable in a single installment. Subpart B--Limitations on Guaranteed Benefits 4022.21 Limitations; in general. 4022.22 Maximum guaranteeable benefit. 4022.23 Computation of maximum guaranteeable benefit. 4022.24 Benefit increases. 4022.25 Five-year phase-in of benefit guarantee for participants other than substantial owners. 4022.26 Phase-in of benefit guarantee for participants who are substantial owners. 4022.27 Effect of tax disqualification. Subpart C--Calculation and Payment of Unfunded Nonguaranteed Benefits [Reserved] Subpart D--Benefit Reductions in Terminating Plans 4022.61 Limitations on benefit payments by plan administrator. 4022.62 Estimated guaranteed benefit. 4022.63 Estimated title IV benefit. Subpart E--PBGC Recoupment and Reimbursement of Benefit Overpayments and Underpayments 4022.81 General rules. 4022.82 Method of recoupment. 4022.83 PBGC reimbursement of benefit underpayments. Appendix to Part 4022--Maximum Guaranteeable Monthly Benefit Authority: 29 U.S.C. 1302(b)(3), 1322, 1322b, 1341(c)(3)(D), 1344. Part 4022B--Aggregate Limits on Guaranteed Benefits Sec. 4022B.1 Aggregate payments limitation. Authority: 29 U.S.C. 1302(b)(3). SUBCHAPTER E--PLAN TERMINATIONS Part 4041--Termination of Single-Employer Plans Subpart A--General Provisions Sec. 4041.1 Purpose and scope. 4041.2 Definitions. 4041.3 Requirements for a standard or a distress termination. 4041.4 Administration of plan during pendency of termination proceedings. 4041.5 Challenges to plan termination under collective bargaining agreement. 4041.6 Annuity requirements. 4041.7 Facilitating plan sufficiency in a standard termination. 4041.8 Disaster relief--distress termination. 4041.9 Filing with the PBGC. 4041.10 Computation of time. 4041.11 Maintenance of plan records. 4041.12 Information collection. Subpart B--Standard Terminations 4041.21 Notice of intent to terminate. 4041.22 Issuance of notices of plan benefits. 4041.23 Form and contents of notices of plan benefits. 4041.24 Standard termination notice. 4041.25 PBGC action upon filing of standard termination notice. 4041.26 Notice of noncompliance. 4041.27 Closeout of plan. Subpart C--Distress Terminations 4041.41 Notice of intent to terminate. 4041.42 PBGC review of notice of intent to terminate. 4041.43 Distress termination notice. 4041.44 PBGC determination of compliance with requirements for distress termination. 4041.45 PBGC determination of plan sufficiency/insufficiency. 4041.46 Notices of benefit distribution. 4041.47 Verification of plan sufficiency prior to closeout. 4041.48 Closeout of plan. Appendix to Part 4041--Agreement for Commitment to Make Plan Sufficient for Benefit Liabilities Authority: 29 U.S.C. 1302(b)(3), 1341, 1344. Part 4041A--Termination of Multiemployer Plans Subpart A--General Provisions Sec. 4041A.1 Purpose and scope. 4041A.2 Definitions. 4041A.3 Submission of documents. Subpart B--Notice of Termination 4041A.11 Requirement of notice. 4041A.12 Contents of notice. Subpart C--Plan Sponsor Duties 4041A.21 General rule. 4041A.22 Payment of benefits. 4041A.23 Imposition and collection of withdrawal liability. 4041A.24 Annual plan valuations and monitoring. 4041A.25 Periodic determinations of plan solvency. 4041A.26 Financial assistance. 4041A.27 PBGC approval to pay benefits not otherwise permitted. Subpart D--Closeout of Sufficient Plans 4041A.41 General rule. 4041A.42 Method of distribution. 4041A.43 Benefit forms. 4041A.44 Cessation of withdrawal liability. Authority: 29 U.S.C. 1302(b)(3), 1341a, 1441. Part 4043--Reportable Events and Certain Other Notification Requirements Subpart A--Reportable Events; In General Sec. 4043.1 Purpose and scope. 4043.2 Definitions. 4043.3 Requirement of notice. 4043.4 Reporting of reportable events on annual report. 4043.5 Obligation of contributing sponsor. 4043.6 Date of filing. 4043.7 Computation of time. 4043.11 Tax disqualification. 4043.12 Title I non-compliance. 4043.13 Amendment decreasing benefits payable. 4043.14 Active participant reduction. 4043.15 Termination or partial termination. 4043.16 Failure to meet minimum funding standards and granting of funding waiver. 4043.17 Inability to pay benefits when due. 4043.18 Distribution to a substantial owner. 4043.19 Plan merger, consolidation or transfer. [[Page 34005]] 4043.20 Alternative compliance with reporting and disclosure requirements of Title I. 4043.21 Bankruptcy, insolvency, or similar settlements. 4043.22 Liquidation or dissolution. 4043.23 Transactions involving a change in contributing sponsor or controlled group. Subpart B--Section 302(f); Notice of Failure to Make Required Contributions 4043.31 PBGC Form 200, notice of failure to make required contributions. Authority: 29 U.S.C. 1302(b)(3), 1343, 1365. Part 4044--Allocation of Assets in Single-Employer Plans Subpart A--Allocation of Assets General Provisions Sec. 4044.1 Purpose and scope of subpart A. 4044.2 Definitions. 4044.3 General rule. 4044.4 Violations. Allocation of Assets to Benefit Categories 4044.10 Manner of allocation. 4044.11 Priority category 1 benefits. 4044.12 Priority category 2 benefits. 4044.13 Priority category 3 benefits. 4044.14 Priority category 4 benefits. 4044.15 Priority category 5 benefits. 4044.16 Priority category 6 benefits. 4044.17 Subclasses. Allocation of Residual Assets 4044.30 [Reserved.] Subpart B--Valuation of Benefits and Assets 4044.41 General valuation rules. Trusteed Plans 4044.51 Benefits to be valued. 4044.52 Valuation of benefits. 4044.53 Mortality assumptions--in general. 4044.54 Mortality assumptions--lump sums. Expected Retirement Age 4044.55 XRA when a participant must retire to receive a benefit. 4044.56 XRA when a participant need not retire to receive a benefit. 4044.57 Special rule for facility closing. Non-Trusteed Plans 4044.71 Valuation of annuity benefits. 4044.72 Form of annuity to be valued. 4044.73 Lump sums and other alternative forms of distribution in lieu of annuities. 4044.74 Withdrawal of employee contributions. 4044.75 Other lump sum benefits. Appendix A to Part 4044--Mortality Rate Tables Appendix B to Part 4044--Interest Rates Used to Value Annuities and Lump Sums Appendix C to Part 4044--Loading Assumptions Appendix D to Part 4044--Tables Used To Determine Expected Retirement Age Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362. Part 4047--Restoration of Terminating and Terminated Plans Sec. 4047.1 Purpose and scope. 4047.2 Definitions. 4047.3 Funding of restored plan. 4047.4 Payment of premiums. 4047.5 Repayment of PBGC payments of guaranteed benefits. Authority: 29 U.S.C. 1302(b)(3), 1347. Part 4050--Missing Participants Sec. 4050.1 Purpose and scope. 4050.2 Definitions. 4050.3 Method of distribution for missing participants. 4050.4 Diligent search. 4050.5 Designated benefit. 4050.6 Payment and required documentation. 4050.7 Benefits of missing participants--in general. 4050.8 Automatic lump sum. 4050.9 Annuity or elective lump sum--living missing participant. 4050.10 Annuity or elective lump sum--beneficiary of deceased missing participant. 4050.11 Limitations. 4050.12 Special rules. 4050.13 OMB control number. SUBCHAPTER F--LIABILITY Part 4061--Amounts Payable by the Pension Benefit Guaranty Corporation Sec. 4061.1 Cross-references. Authority: 29 U.S.C. 1302(b)(3). Part 4062--Liability for Termination of Single-Employer Plans Sec. 4062.1 Purpose and scope. 4062.2 Definitions. 4062.3 Amount and payment of section 4062(b) liability. 4062.4 Determinations of net worth and collective net worth. 4062.5 Net worth record date. 4062.6 Net worth notification and information. 4062.7 Calculating interest on liability and refunds of overpayments. 4062.8 Arrangements for satisfying liability. 4062.9 Notification of and demand for liability. 4062.10 Filing of documents. 4062.11 Computation of time. Part 4063--Withdrawal Liability; Plans Under Multiple Controlled Groups Sec. 4063.1 Cross-references. Authority: 29 U.S.C. 1302(b)(3). Part 4064--Liability on Termination of Single-Employer Plans Under Multiple Controlled Groups Sec. 4064.1 Cross-references. Authority: 29 U.S.C. 1302(b)(3). SUBCHAPTER G--ANNUAL REPORTING REQUIREMENTS Part 4065--Annual Report Sec. 4065.1 Purpose and scope. 4065.2 Definitions. 4065.3 Filing requirement. Authority: 29 U.S.C. 1302, 1365. SUBCHAPTER H--ENFORCEMENT PROVISIONS Part 4067--Recovery of Liability for Plan Terminations Sec. 4067.1 Cross-reference. Authority: 29 U.S.C. 1302, 1367. Part 4068--Lien for Liability Sec. 4068.1 Purpose; cross-references. 4068.2 Definitions. 4068.3 Notification of and demand for liability. 4068.4 Lien. Authority: 29 U.S.C. 1302(b)(3), 1368. SUBCHAPTER I--WITHDRAWAL LIABILITY FOR MULTIEMPLOYER PLANS Part 4203--Extension of Special Withdrawal Liability Rules Sec. 4203.1 Purpose and scope. 4203.2 Plan adoption of special withdrawal rules. 4203.3 Requests for PBGC approval of plan amendments. 4203.4 PBGC action on requests. 4203.5 OMB control number. Authority: 29 U.S.C. 1302(b)(3), 1383(f), 1388(e)(3). Part 4204--Variances for Sale of Assets Subpart A--General Sec. 4204.1 Purpose and scope. 4204.2 Definitions. Subpart B--Variance of the Statutory Requirements 4204.11 Variance of the bond/escrow and sale-contract requirements. 4204.12 De minimis transactions. 4204.13 Net income and net tangible assets tests. Subpart C--Procedures for Individual and Class Variances or Exemptions 4204.21 Requests to PBGC for variances and exemptions. 4204.22 PBGC action on requests. Authority: 29 U.S.C. 1302(b)(3), 1384(c). Part 4206--Adjustment of Liability for a Withdrawal Subsequent to a Partial Withdrawal Sec. 4206.1 Purpose and scope. 4206.2 Definitions. 4206.3 Credit against liability for a subsequent withdrawal. 4206.4 Amount of credit in plans using the presumptive method. 4206.5 Amount of credit in plans using the modified presumptive method. [[Page 34006]] 4206.6 Amount of credit in plans using the rolling-5 method. 4206.7 Amount of credit in plans using the direct attribution method. 4206.8 Reduction of credit for abatement or other reduction of prior partial withdrawal liability. 4206.9 Amount of credit in plans using alternative allocation methods. 4206.10 Special rule for 70-percent decline partial withdrawals. Authority: 29 U.S.C. 1302(b)(3), 1386(b). Part 4207--Reduction or Waiver of Complete Withdrawal Liability Sec. 4207.1 Purpose and scope. 4207.2 Definitions. 4207.3 Abatement. 4207.4 Withdrawal liability payments during pendency of abatement determination. 4207.5 Requirements for abatement. 4207.6 Partial withdrawals after reentry. 4207.7 Liability for subsequent complete withdrawals and related adjustments for allocating unfunded vested benefits. 4207.8 Liability for subsequent partial withdrawals. 4207.9 Special rules. 4207.10 Plan rules for abatement. Authority: 29 U.S.C. 1302(b)(3), 1387. Part 4208--Reduction or Waiver of Partial Withdrawal Liability Sec. 4208.1 Purpose and scope. 4208.2 Definitions. 4208.3 Abatement. 4208.4 Conditions for abatement. 4208.5 Withdrawal liability payments during pendency of abatement determination. 4208.6 Computation of reduced annual partial withdrawal liability payment. 4208.7 Adjustment of withdrawal liability for subsequent withdrawals. 4208.8 Multiple partial withdrawals in one plan year. 4208.9 Plan adoption of additional abatement conditions. Authority: 29 U.S.C. 1302(b)(3), 1388 (c) and (e). Part 4211--Allocating Unfunded Vested Benefits Subpart A--General Sec. 4211.1 Purpose and scope. 4211.2 Definitions. 4211.3 Special rules for construction industry and IRC section 404(c) plans. Subpart B--Changes Not Subject to PBGC Approval 4211.11 Changes not subject to PBGC approval. 4211.12 Modifications to the presumptive, modified presumptive and rolling-5 methods. 4211.13 Modifications to the direct attribution method. Subpart C--Changes Subject to PBGC Approval 4211.21 Changes subject to PBGC approval. 4211.22 Requests for PBGC approval. 4211.23 Approval of alternative method. 4211.24 Special rule for certain alternative methods previously approved. Subpart D--Allocation Methods for Merged Multiemployer Plans 4211.31 Allocation of unfunded vested benefits following the merger of plans. 4211.32 Presumptive method for withdrawals after the initial plan year. 4211.33 Modified presumptive method for withdrawals after the initial plan year. 4211.34 Rolling-5 method for withdrawals after the initial plan year. 4211.35 Direct attribution method for withdrawals after the initial plan year. 4211.36 Modifications to the determination of initial liabilities, the amortization of initial liabilities, and the allocation fraction. 4211.37 Allocating unfunded vested benefits for withdrawals before the end of the initial plan year. Authority: 29 U.S.C. 1302(b)(3), 1391 (c)(1), (c)(2)(D), (c)(5)(A), (c)(5)(B), (c)(5) (D), and (f). Part 4219--Notice, Collection, and Redetermination of Withdrawal Liability Subpart A--General Sec. 4219.1 Purpose and scope. 4219.2 Definitions. Subpart B--Redetermination of Withdrawal Liability Upon Mass Withdrawal 4219.11 Withdrawal liability upon mass withdrawal. 4219.12 Employers liable upon mass withdrawal. 4219.13 Amount of liability for de minimis amounts. 4219.14 Amount of liability for 20-year-limitation amounts. 4219.15 Determination of reallocation liability. 4219.16 Imposition of liability. 4219.17 Filings with PBGC. 4219.18 Withdrawal in a plan year in which substantially all employers withdraw. 4219.19 Information collection. Subpart C--Overdue, Defaulted, and Overpaid Withdrawal Liability Sec. 4219.31 Overdue and defaulted withdrawal liability; overpayment. 4219.32 Interest on overdue, defaulted and overpaid withdrawal liability. 4219.34 Plan rules concerning overdue and defaulted withdrawal liability. Authority: 29 U.S.C. 1302(b)(3), 1389 (c) and (d), 1399 (c)(1)(D) and (c)(6). Part 4220--Procedures for PBGC Approval of Plan Amendments Sec. 4220.1 Purpose and scope. 4220.2 Requests for PBGC approval. 4220.3 PBGC action on requests. Authority: 29 U.S.C. 1302(b)(3), 1400. Part 4221--Arbitration of Disputes in Multiemployer Plans Sec. 4221.1 Purpose and scope. 4221.2 Definitions. 4221.3 Initiation of arbitration. 4221.4 Appointment of the arbitrator. 4221.5 Powers and duties of the arbitrator. 4221.6 Hearing. 4221.7 Reopening of proceedings. 4221.8 Award. 4221.9 Reconsideration of award. 4221.10 Costs. 4221.11 Waiver of rules. 4221.12 Calculation of periods of time. 4221.13 Filing or service of documents. 4221.14 PBGC-approved arbitration procedures. Authority: 29 U.S.C. 1302(b)(3), 1401. SUBCHAPTER J--INSOLVENCY, REORGANIZATION, TERMINATION, AND OTHER RULES APPLICABLE TO MULTIEMPLOYER PLANS Part 4231--Mergers and Transfers Between Multiemployer Plans Sec. 4231.1 Purpose and scope. 4231.2 Definitions. 4231.3 Requirements for mergers and transfers. 4231.4 Preservation of accrued benefits. 4231.5 Valuation requirement. 4231.6 Plan solvency tests. 4231.7 De minimis mergers and transfers. 4231.8 Notice of merger or transfer. 4231.9 Request for compliance determination. 4231.10 Actuarial calculations and assumptions. Authority: 29 U.S.C. 1302(b)(3), 1411. Part 4245--Notice of Insolvency Sec. 4245.1 Purpose and scope. 4245.2 Definitions. 4245.3 Notice of insolvency. 4245.4 Contents of notice of insolvency. 4245.5 Notice of insolvency benefit level. 4245.6 Contents of notice of insolvency benefit level. 4245.7 PBGC address. Authority: 29 U.S.C. 1302(b)(3), 1426(e). Part 4261--Financial Assistance to Multiemployer Plans Sec. 4261.1 Cross-reference. Authority: 29 U.S.C. 1302(b)(3). Part 4281--Duties of Plan Sponsor Following Mass Withdrawal Subpart A--General Sec. 4281.1 Purpose and scope. 4281.2 Definitions. 4281.3 Submission of documents. 4281.4 Collection of information. Subpart B--Valuation of Plan Benefits and Plan Assets 4281.11 Valuation dates. 4281.12 Benefits to be valued. 4281.13 Benefit valuation methods--in general. [[Page 34007]] 4281.14 Mortality assumptions--in general. 4281.15 Mortality assumptions--lump sums under trusteed plans. 4281.16 Benefit valuation methods--plans closing out. 4281.17 Asset valuation methods--in general. 4281.18 Outstanding claims for withdrawal liability. Subpart C--Benefit Reductions 4281.31 Plan amendment. 4281.32 Notices of benefit reductions. 4281.33 Restoration of benefits. Subpart D--Benefit Suspensions 4281.41 Benefit suspensions. 4281.42 Retroactive payments. 4281.43 Notices of insolvency and annual updates. 4281.44 Contents of notices of insolvency and annual updates. 4281.45 Notices of insolvency benefit level. 4281.46 Contents of notices of insolvency benefit level. 4281.47 Application for financial assistance. Appendix A to Part 4281--Interest Rates Used to Value Lump Sums and Annuities Appendix B to Part 4281--Loading Assumptions Authority: 29 U.S.C. 1302(b)(3), 1341a, 1399(c)(1)(D), and 1441. SUBCHAPTER K--INTERNAL AND ADMINISTRATIVE RULES AND PROCEDURES Part 4901--Examination and Copying of Pension Benefit Guaranty Corporation Records Subpart A--General Sec. 4901.1 Purpose and scope. 4901.2 Definitions. 4901.3 Disclosure facilities. 4901.4 Information maintained in public reference room. 4901.5 Disclosure of other information. Subpart B--Procedure for Formal Requests 4901.11 Submittal of requests for access to records. 4901.12 Description of information requested. 4901.13 Receipt by agency of request. 4901.14 Action on request. 4901.15 Appeals from denial of requests. 4901.16 Extensions of time. 4901.17 Exhaustion of administrative remedies. Subpart C--Restrictions on Disclosure 4901.21 Restrictions in general. 4901.22 Partial disclosure. 4901.23 Records of concern to more than one agency. 4901.24 Special rules for trade secrets and confidential commercial or financial information submitted to the PBGC. Subpart D--Fees 4901.31 Charges for services. 4901.32 Fee schedule. 4901.33 Payment of fees. 4901.34 Waiver or reduction of charges. Authority: 5 U.S.C. 552; 29 U.S.C. 1302(b)(3); E.O. 12600, 52 FR 23781. Part 4902--Disclosure and Amendment of Records Under the Privacy Act Sec. 4902.1 Purpose and scope. 4902.2 Definitions. 4902.3 Procedures for determining existence of and requesting access to records. 4902.4 Disclosure of record to an individual. 4902.5 Procedures for requesting amendment of a record. 4902.6 Action on request for amendment of a record. 4902.7 Appeal of a denial of a request for amendment of a record. 4902.8 Fees. 4902.9 Specific exemptions. Authority: 5 U.S.C. 552a; 29 U.S.C. 1302(b)(3). Part 4903--Debt Collection Subpart A--General Sec. 4903.1 Purpose and scope. 4903.2 General. 4903.3 Definitions. Subpart B--Administrative Offset 4903.21 Application of Federal Claims Collection Standards. 4903.22 Administrative offset procedures. 4903.23 PBGC requests for offset to other agencies. 4903.24 Requests for offset from other agencies. Subpart C--Tax Refund Offset 4903.31 Eligibility of debt for tax refund offset. 4903.32 Tax refund offset procedures. 4903.33 Referral of debt for tax refund offset. Subpart D--Salary Offset [Reserved] Authority: 29 U.S.C. 1302(b); 31 U.S.C. 3701, 3711(f), 3720A; 4 CFR part 102; 26 CFR 301.6402-6. Part 4904--Ethical Conduct of Employees Sec. 4904.1 Ethical conduct; standards and requirements. Authority: 29 U.S.C. 1302(b)(3). Part 4905--Appearances in Certain Proceedings Sec. 4905.1 Purpose and scope. 4905.2 Definitions. 4905.3 General. 4905.4 Appearances by PBGC employees. 4905.5 Requests for authenticated copies of PBGC records. 4905.6 Penalty. Authority: 29 U.S.C. 1302(b). Part 4906--[Reserved] Part 4907--Enforcement of Nondiscrimination on the Basis of Handicap in Programs or Activities Conducted by the Pension Benefit Guaranty Corporation Sec. 4907.101 Purpose. 4907.102 Application. 4907.103 Definitions. 4907.110 Self-evaluation. 4907.111 Notice. 4907.130 General prohibitions against discrimination. 4907.140 Employment. 4907.149 Program accessibility: Discrimination prohibited. 4907.150 Program accessibility: Existing facilities. 4907.151 Program accessibility: New construction and alterations. 4907.160 Communications. 4907.170 Compliance procedures. Authority: 29 U.S.C. 794, 1302(b)(3). PART 4000--FINDING AIDS Sec. 4000.1 Distribution table. 4000.2 Derivation table. Authority: 29 U.S.C. 1302(b)(3). Sec. 4000.1 Distribution table. The following table shows where in chapter XL of 29 CFR to find regulations previously codified in chapter XXVI. ------------------------------------------------------------------------ Ch. XL Part(s)/Subpart(s) Ch. XXVI Part Subpart(s)/Section(s) Subpart(s)/Section(s) ------------------------------------------------------------------------ Subchapter A--Internal and Administrative Rules ------------------------------------------------------------------------ 2601................................... 4002 2602: Subpart A.......................... 4904 Subpart B.......................... 4905 2603................................... 4901 2604................................... Repealed 2606................................... 4003 2607................................... 4902 2608................................... 4907 [[Page 34008]] 2609................................... 4903 ------------------------------------------------------------------------ Subchapter B--Rules Applicable to Single-Employer and Multiemployer Plans ------------------------------------------------------------------------ 2610................................... 4006 & 4007 Secs. 2610.1, 2610.21, 2610.31.... Secs. 4006.1 & 4007.1 Secs. 2610.2...................... Secs. 4006.2 & 4007.2 Secs. 2610.3-2610.9 & 2610.11..... 4007 Sec. 2610.10...................... 4006.5(e) Secs. 2610.22-2610.24 & 2610.33... 4006 Secs. 2610.25, 2610.26 & 2610.34.. 4007 2611................................... 4065 2612................................... 4001, Subpart B 2613................................... 4022, Subpart A ------------------------------------------------------------------------ Subchapter C--Single-Employer Plans ------------------------------------------------------------------------ 2615................................... 4043 2616................................... 4041 Subpart A.......................... Subpart A Subpart B.......................... Subpart C 2617................................... 4041 Subpart A.......................... Subpart A Subpart B.......................... Subpart B 2618................................... 4044, Subpart A 2619................................... 4044, Subpart B 2620................................... 4044, Subpart B 2621 (except Sec. 2621.23(b))......... 4022, Subpart B 2621.23(b)............................. 4022B 2622 (except 2622.9)................... 4062 Sec. 2622.9....................... 4068 2623................................... 4022, Subparts D & E 2625................................... 4047 2627................................... 4011 2628................................... 4010 2629................................... 4050 ------------------------------------------------------------------------ Subchapter F--Withdrawal Liability in Multiemployer Plans ------------------------------------------------------------------------ 2640: Sec. 2640.2....................... Sec. 4001.2 Sec. 2640.3....................... Sec. 4221.2 Sec. 2640.4....................... Sec. 4211.2 Sec. 2640.5....................... Sec. 4204.2 Sec. 2640.6....................... Sec. 4207.2, 4208.2 Sec. 2640.7....................... Sec. 4219.2 Sec. 2640.8....................... Sec. 4206.2 2641................................... 4221 2642................................... 4211 2643................................... 4204 2644................................... 4219, Subpart C 2645................................... 4203 2646................................... 4208 2647................................... 4207 2648................................... 4219, Subpart B 2649................................... 4206 ------------------------------------------------------------------------ Subchapter H--Other Rules Applicable to Multiemployer Plans ------------------------------------------------------------------------ 2670: Sec. 2670.2....................... Sec. 4001.2 Sec. 2670.3....................... Sec. 4231.2 Sec. 2670.4....................... Secs. 4041A.2, 4245.2, & 4281.2 2672................................... 4231 2673................................... 4041A, Subpart B, & 4041A.3(a) 2674................................... 4245 2675................................... 4041A, Subparts C & D, & 4281, Subparts C & D 2676................................... 4281, Subpart B 2677................................... 4220 ------------------------------------------------------------------------ Sec. 4000.2 Derivation table. The following table shows where in previous chapter XXVI of 29 CFR to find regulations now codified in chapter XL. [[Page 34009]] ------------------------------------------------------------------------ Ch. XXVI Part(s) Subpart/ Ch. XL Part Subpart/Section(s) Section(s) ------------------------------------------------------------------------ Subchapter A--General ------------------------------------------------------------------------ 4000................................... [tables] 4001: Subpart A.......................... [various statutory and regulatory definitions] Subpart B.......................... 2612 4002................................... 2601 4003................................... 2606 ------------------------------------------------------------------------ Subchapter B--Premiums ------------------------------------------------------------------------ 4006................................... 2610 4007................................... 2610 ------------------------------------------------------------------------ Subchapter C--Certain Reporting and Disclosure Requirements ------------------------------------------------------------------------ 4010................................... 2628 4011................................... 2627 ------------------------------------------------------------------------ Subchapter D--Coverage and Benefits ------------------------------------------------------------------------ 4022: Subpart A.......................... 2613 Subpart B.......................... 2621 (except Sec. 2621.23(b)) Subparts D & E..................... 2623 4022B.................................. Sec. 2621.23(b) ------------------------------------------------------------------------ Subchapter E--Plan Terminations ------------------------------------------------------------------------ 4041: Subpart A.......................... Secs. 2616 & 2617, Subparts A Subpart B.......................... 2617, Subpart B Subpart C.......................... 2616, Subpart B 4041A: Subpart A.......................... Secs. 2670.4, 2673.1, 2673.4, 2675.1 & 2675.2 Subpart B.......................... Secs. 2673.2 & .3 Subparts C & D..................... 2675, Subparts B & E 4043................................... 2615 4044................................... 2618, 2619 & 2620 4047................................... 2625 4050................................... 2629 ------------------------------------------------------------------------ Subchapter F--Liability ------------------------------------------------------------------------ 4061................................... [cross-references] 4062................................... 2622 (except Sec. 2622.9) 4063................................... [cross-references] 4064................................... [cross-references] ------------------------------------------------------------------------ Subchapter G--Annual Reporting Requirements ------------------------------------------------------------------------ 4065................................... 2611 ------------------------------------------------------------------------ Subchapter H--Enforcement Provisions ------------------------------------------------------------------------ 4067................................... [cross-reference] 4068................................... 2622.9 Subchapter I--Withdrawal Liability in Multiemployer Plans ------------------------------------------------------------------------ 4203................................... 2645 4204................................... 2643 & Sec. 2640.5 4206................................... 2649 & Sec. 2640.8 4207................................... 2647 & 2640.6 4208................................... 2646 & 2640.6 4211................................... 2642 & 2640.4 4219: Subpart A.......................... Sec. 2640.7 Subpart B.......................... 2648 Subpart C.......................... 2644 4220................................... 2677 4221................................... 2641 & Sec. 2640.3 ------------------------------------------------------------------------ Subchapter J--Insolvency, Reorganization, Termination, and Other Rules Applicable to Multiemployer Plans ------------------------------------------------------------------------ 4231................................... 2672 & Sec. 2670.3 [[Page 34010]] 4245................................... 2674 & 2670.4 4261................................... [cross-reference] 4281: Subpart A.......................... 2675, Subpart A, & 2670.4 Subpart B.......................... 2676 Subpart C.......................... 2675, Subpart C Subpart D.......................... 2675, Subpart D ------------------------------------------------------------------------ Subchapter K--Internal Administrative Rules and Procedures ------------------------------------------------------------------------ 4901................................... 2603 4902................................... 2607 4903................................... 2609 4904................................... 2602, Subpart A 4905................................... 2602, Subpart B 4907................................... 2608 ------------------------------------------------------------------------ PART 4001--TERMINOLOGY Sec. 4001.1 Purpose and scope. 4001.2 Definitions. 4001.3 Trades or businesses under common control; controlled groups. Authority: 29 U.S.C. 1301, 1302(b)(3). Sec. 4001.1 Purpose and scope. This part contains definitions of certain terms used in this chapter and the regulations under which the PBGC makes various controlled group determinations. Sec. 4001.2 Definitions. For purposes of this chapter (unless otherwise indicated or required by the context): Affected party means, with respect to a plan-- (1) Each participant in the plan; (2) Each beneficiary of a deceased participant; (3) Each alternate payee under an applicable qualified domestic relations order, as defined in section 206(d)(3) of ERISA; (4) Each employee organization that currently represents any group of participants; (5) For any group of participants not currently represented by an employee organization, the employee organization, if any, that last represented such group of participants within the 5-year period preceding issuance of the notice of intent to terminate; and (6) the PBGC. If an affected party has designated, in writing, a person to receive a notice on behalf of the affected party, any reference to the affected party (in connection with the notice) shall be construed to refer to such person. Annuity means a series of periodic payments to a participant or surviving beneficiary for a fixed or contingent period. Basic-type benefit means a benefit that is guaranteed under the provisions of part 4022, subpart A, of this chapter, or would be guaranteed if the guarantee limits in part 4022, subpart B, of this chapter did not apply. Benefit liabilities means the benefits of participants and their beneficiaries under the plan (within the meaning of section 401(a)(2) of the Code). Code means the Internal Revenue Code of 1986, as amended. Complete withdrawal means a complete withdrawal as described in section 4203 of ERISA. Contributing sponsor means a person who is a contributing sponsor as defined in section 4001(a)(13) of ERISA. Controlled group means, in connection with any person, a group consisting of such person and all other persons under common control with such person, determined under section 4001.3 of this part. For purposes of determining the persons liable for contributions under section 412(c)(11)(B) of the Code or section 302(c)(11)(B) of ERISA, or for premiums under section 4007(e)(2) of ERISA, a controlled group also includes any group treated as a single employer under section 414 (m) or (o) of the Code. Corporation means the Pension Benefit Guaranty Corporation, except where the context demonstrates that a different meaning is intended. Defined benefit plan means a plan described in section 3(35) of ERISA. Distress termination means the voluntary termination of a single- employer plan in accordance with section 4041(c) of ERISA and part 4041, subpart C, of this chapter. Distribution date means: (1) Except as provided in paragraph (2)-- (i) For benefits provided through the purchase of irrevocable commitments, the date on which the obligation to provide the benefits passes from the plan to the insurer; and (ii) For benefits provided other than through the purchase of irrevocable commitments, the date on which the benefits are delivered to the participant or beneficiary (or to another plan or benefit arrangement or other recipient authorized by the participant or beneficiary in accordance with applicable law and regulations) personally or by deposit with a mail or courier service (as evidenced by a postmark or written receipt); or (2) Other than for purposes of determining the interest rate to be used in calculating the value of a benefit to be paid as a lump sum to a late-discovered participant, the deemed distribution date (as defined in Sec. 4050.2) in the case of a designated benefit paid to the PBGC, a benefit provided after the deemed distribution date to a late- discovered participant, or an irrevocable commitment purchased from an insurer after the deemed distribution date for a recently-missing participant in accordance with part 4050 of this chapter (dealing with missing participants). Employer means all trades or businesses (whether or not incorporated) that are under common [[Page 34011]] control, within the meaning of Sec. 4001.3 of this chapter. ERISA means the Employee Retirement Income Security Act of 1974, as amended. Fair market value means the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts. FOIA means the Freedom of Information Act, as amended (5 U.S.C. 552). Funding standard account means an account established and maintained under section 302(b) of ERISA or section 412(b) of the Code. Guaranteed benefit means a benefit under a single-employer plan that is guaranteed by the PBGC under section 4022(a) of ERISA and part 4022 of this chapter, or a benefit under a multiemployer plan that is guaranteed by the PBGC under section 4022A of ERISA. Insurer means a company authorized to do business as an insurance carrier under the laws of a State or the District of Columbia. Irrevocable commitment means an obligation by an insurer to pay benefits to a named participant or surviving beneficiary, if the obligation cannot be cancelled under the terms of the insurance contract (except for fraud or mistake) without the consent of the participant or beneficiary and is legally enforceable by the participant or beneficiary. IRS means the Internal Revenue Service. Mandatory employee contributions means amounts contributed to the plan by a participant that are required as a condition of employment, as a condition of participation in such plan, or as a condition of obtaining benefits under the plan attributable to employer contributions. Mass withdrawal means the withdrawal of every employer from the plan, or the withdrawal of substantially all employers pursuant to an agreement or arrangement to withdraw. Multiemployer Act means the Multiemployer Pension Plan Amendments Act of 1980. Multiemployer plan means a plan that is described in section 4001(a)(3) of ERISA and that is covered by title IV of ERISA. Multiple employer plan means a single-employer plan maintained by two or more contributing sponsors that are not members of the same controlled group, under which all plan assets are available to pay benefits to all plan participants and beneficiaries. Nonbasic-type benefit means any benefit provided by a plan other than a basic-type benefit. Nonforfeitable benefit means a benefit described in section 4001(a)(8) of ERISA. Benefits that become nonforfeitable solely as a result of the termination of a plan will be considered forfeitable. Normal retirement age means the age specified in the plan as the normal retirement age. This age shall not exceed the later of age 65 or the age attained after 5 years of participation in the plan. If no normal retirement age is specified in the plan, it is age 65. Notice of intent to terminate means the notice of a proposed termination of a single-employer plan, as required by section 4041(a)(2) of ERISA and Sec. 4041.21 (in a standard termination) or Sec. 4041.41 (in a distress termination) of this chapter. PBGC means the Pension Benefit Guaranty Corporation. Person means a person defined in section 3(9) of ERISA. Plan means a defined benefit plan within the meaning of section 3(35) of ERISA that is covered by title IV of ERISA. Plan administrator means an administrator, as defined in section 3(16)(A) of ERISA. Plan sponsor means, with respect to a multiemployer plan, the person described in section 4001(a)(10) of ERISA. Plan year means the calendar, policy, or fiscal year on which the records of the plan are kept. Proposed termination date means the date specified as such by the plan administrator of a single-employer plan in a notice of intent to terminate or, if later, in the standard or distress termination notice, in accordance with section 4041 of ERISA and part 4041 of this chapter. Single-employer plan means any defined benefit plan (as defined in section 3(35) of ERISA) that is not a multiemployer plan (as defined in section 4001(a)(3) of ERISA) and that is covered by title IV of ERISA. Standard termination means the voluntary termination, in accordance with section 4041(b) of ERISA and part 4041, subpart B, of this chapter, of a single-employer plan that is able to provide for all of its benefit liabilities when plan assets are distributed. Substantial owner means a substantial owner as defined in section 4022(b)(5)(A) of ERISA. Sufficient for benefit liabilities means that there is no amount of unfunded benefit liabilities, as defined in section 4001(a)(18) of ERISA. Sufficient for guaranteed benefits means that there is no amount of unfunded guaranteed benefits, as defined in section 4001(a)(17) of ERISA. Termination date means the date established pursuant to section 4048(a) of ERISA. Title IV benefit means the guaranteed benefit plus any additional benefits to which plan assets are allocated pursuant to section 4044 of ERISA and part 4044 of this chapter. Voluntary employee contributions means amounts contributed by an employee to a plan, pursuant to the provisions of the plan, that are not mandatory employee contributions. Sec. 4001.3 Trades or businesses under common control; controlled groups. For purposes of title IV of ERISA: (a)(1) The PBGC will determine that trades and businesses (whether or not incorporated) are under common control if they are ``two or more trades or businesses under common control'', as defined in regulations prescribed under section 414(c) of the Code. (2) The PBGC will determine that all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer, and all such trades and businesses shall be treated as a single employer. (3) An individual who owns the entire interest in an unincorporated trade or business is treated as his own employer, and a partnership is treated as the employer of each partner who is an employee within the meaning of section 401(c)(1) of the Code. (b) In the case of a single-employer plan: (1) In connection with any person, a controlled group consists of that person and all other persons under common control with such person. (2) Persons are under common control if they are members of a ``controlled group of corporations'', as defined in regulations prescribed under section 414(b) of the Code, or if they are ``two or more trades or businesses under common control'', as defined in regulations prescribed under section 414(c) of the Code. PART 4002--BYLAWS OF THE PENSION BENEFIT GUARANTY CORPORATION Sec. 4002.1 Name. 4002.2 Offices. 4002.3 Board of Directors. 4002.4 Chairman. 4002.5 Quorum. [[Page 34012]] 4002.6 Meetings. 4002.7 Place of meetings; use of conference call communications equipment. 4002.8 Alternate voting procedure. 4002.9 Amendments. Authority: 29 U.S.C. 1302(f). Sec. 4002.1 Name. The name of the Corporation is the Pension Benefit Guaranty Corporation. Sec. 4002.2 Offices. The principal office of the Corporation shall be in the Metropolitan area of the City of Washington, District of Columbia. The Corporation may have additional offices at such other places as the Board of Directors may deem necessary or desirable to the conduct of its business. Sec. 4002.3 Board of Directors. (a) The Board of Directors shall establish the policies of the Corporation and shall perform the other functions assigned to the Board of Directors in title IV of the Employee Retirement Income Security Act of 1974. The Board of Directors of the Corporation shall be composed of the Secretary of Labor, the Secretary of the Treasury, and the Secretary of Commerce. Members of the Board shall serve without compensation, but shall be reimbursed by the Corporation for travel, subsistence, and other necessary expenses incurred in the performance of their duties as members of the Board. A person at the time of a meeting of the Board of Directors who is serving as Secretary of Labor, Secretary of the Treasury or Secretary of Commerce in an acting capacity, shall serve as a member of the Board of Directors with the same authority and effect as the designated Secretary. (b) The following powers are expressly reserved to the Board of Directors and shall not be delegated: (1) Approval of all final substantive regulations prior to publication in the Federal Register, except for amendments to the regulations on Allocation of Assets in Single-employer Plans and Duties of Plan Sponsor Following Mass Withdrawal (parts 4044 and 4281 of this chapter) establishing new interest rates and factors, which may be approved by the Executive Director of the PBGC. (2) Approval of all reports or recommendations to the Congress that are required by statute; (3) Establishment from time to time of the Corporation's budget and debt ceiling up to the statutory limit; (4) Determination from time to time of limits on advances to the revolving funds administered by the Corporation pursuant to section 4005(a) of ERISA; (5) Final decision on any policy matter that would materially affect the rights of a substantial number of employers or covered participants and beneficiaries. (c) Final non-substantive regulations and all proposed regulations shall be approved by the Executive Director prior to publication in the Federal Register; provided that all proposed substantive regulations shall first be circulated for review to the Board of Directors or their designees, and may thereafter be issued by the Executive Director after responding to any comments made within 21 days after circulation of the proposed regulation, or, if no comments are received, after expiration of the 21-day period. Sec. 4002.4 Chairman. The Secretary of Labor shall be the Chairman of the Board of Directors and he shall be the administrator of the Corporation with responsibility for its management, including overall supervision of the Corporation's personnel, organization, and budget practices, and shall exercise such incidental powers as may be necessary to carry out his administrative responsibilities. The Chairman may delegate his administrative responsibilities. Sec. 4002.5 Quorum. A majority of the Directors shall constitute a quorum for the transaction of business. Any act of a majority of the Directors present at any meeting at which there is a quorum shall be the act of the Board, except as may otherwise be provided in these bylaws. Sec. 4002.6 Meetings. Regular meetings of the Board of Directors shall be held at such times as the Chairman shall select. Special meetings of the Board of Directors shall be called by the Chairman on the request of any other Director. Reasonable notice of any meetings shall be given to each Director. The General Counsel of the Corporation shall serve as Secretary to the Board of Directors and keep its minutes. As soon as practicable after each meeting, a draft of the minutes of such meeting shall be distributed to each member of the Board for correction or approval. Sec. 4002.7 Place of meetings; use of conference call communications equipment. Meetings of the Board of Directors shall be held at the principal office of the Corporation unless otherwise determined by the Board of Directors or the Chairman. Any Director may participate in a meeting of the Board of Directors through the use of conference call telephone or similar communications equipment, by means of which all persons participating in the meeting can simultaneously speak to and hear each other. Any Director so participating in a meeting shall be deemed present for all purposes. Actions taken by the Board of Directors at meetings conducted through the use of such equipment, including the votes of each member, shall be recorded in the usual manner in the minutes of the meetings of the Board of Directors. A resolution of the Board of Directors signed by each of its three members shall have the same force and effect as if agreed at a duly called meeting and shall be recorded in the minutes of the Board of Directors. Sec. 4002.8 Alternate voting procedure. (a) A Director shall be deemed to have participated in a meeting of the Board of Directors for all purposes if, (1) That Director was represented at that meeting by an individual who was designated to act on his behalf, and (2) That Director ratified in writing the actions taken by his designee at that meeting within a reasonable period of time after such meeting. (b) For purposes of this section, a Director, including an individual serving as Acting Secretary, shall designate a representative at a level not below that of Assistant Secretary within his Department. Such designation shall be in writing and shall be effective until withdrawn or until a date specified therein. (c) For purposes of this section, a Director's approval of the minutes of a meeting of the Board of Directors shall constitute ratification of the actions of his designee at such meeting. Sec. 4002.9 Amendments. These bylaws may be amended or new bylaws adopted by unanimous vote of the Board. PART 4003--RULES FOR ADMINISTRATIVE REVIEW OF AGENCY DECISIONS Subpart A--General Provisions Sec. 4003.1 Purpose and scope. 4003.2 Definitions. 4003.3 PBGC assistance in obtaining information. 4003.4 Extension of time. 4003.5 Non-timely request for review. 4003.6 Representation. 4003.7 Exhaustion of administrative remedies. 4003.8 Request for confidential treatment. 4003.9 Filing of documents. 4003.10 Computation of time. [[Page 34013]] Subpart B--Initial Determinations 4003.21 Form and contents of initial determinations. 4003.22 Effective date of determinations. Subpart C--Reconsideration of Initial Determinations 4003.31 Who may request reconsideration. 4003.32 When to request reconsideration. 4003.33 Where to submit request for reconsideration. 4003.34 Form and contents of request for reconsideration. 4003.35 Final decision on request for reconsideration. Subpart D--Administrative Appeals 4003.51 Who may appeal or participate in appeals. 4003.52 When to file. 4003.53 Where to file. 4003.54 Contents of appeal. 4003.55 Opportunity to appear and to present witnesses. 4003.56 Consolidation of appeals. 4003.57 Appeals affecting third parties. 4003.58 Powers of the Appeals Board. 4003.59 Decision by the Appeals Board. 4003.60 Referral of appeal to the Executive Director. Authority: 29 U.S.C. 1302(b)(3). Subpart A--General Provisions Sec. 4003.1 Purpose and scope. (a) Purpose. This part sets forth the rules governing the issuance of all initial determinations by the PBGC on cases pending before it involving the matters set forth in paragraph (b) of this section and the procedures for requesting and obtaining administrative review by the PBGC of those determinations. Subpart A contains general provisions. Subpart B sets forth rules governing the issuance of all initial determinations of the PBGC on matters covered by this part. Subpart C establishes procedures governing the reconsideration by the PBGC of initial determinations relating to the matters set forth in paragraphs (b)(1) through (b)(4). Subpart D establishes procedures governing administrative appeals from initial determinations relating to the matters set forth in paragraphs (b)(5) through (b)(10). (b) Scope. This part applies to the following determinations made by the PBGC in cases pending before it and to the review of those determinations: (1) Determinations that a plan is covered under section 4021 of ERISA; (2) Determinations with respect to premiums, interest and late payment penalties pursuant to section 4007 of ERISA; (3) Determinations with respect to voluntary terminations under section 4041 of ERISA, including-- (i) A determination that a notice requirement or a certification requirement under section 4041 of ERISA has not been met, (ii) A determination that the requirements for demonstrating distress under section 4041(c)(2)(B) of ERISA have not been met, and (iii) A determination with respect to the sufficiency of plan assets for benefit liabilities or for guaranteed benefits; (4) Determinations with respect to allocation of assets under section 4044 of ERISA, including distribution of excess assets under section 4044(d); (5) Determinations that a plan is not covered under section 4021 of ERISA; (6) Determinations under section 4022 (a) or (c) or section 4022A(a) of ERISA with respect to benefit entitlement of participants and beneficiaries under covered plans and determinations that a domestic relations order is or is not a qualified domestic relations order under section 206(d)(3) of ERISA and section 414(p) of the Code; (7) Determinations under section 4022 (b) or (c), section 4022A (b) through (e), or section 4022B of ERISA of the amount of benefits payable to participants and beneficiaries under covered plans; (8) Determinations of the amount of money subject to recapture pursuant to section 4045 of ERISA; (9) Determinations of the amount of liability under section 4062(b)(1), section 4063, or section 4064 of ERISA; (10) Determinations-- (i) That the amount of a participant's or beneficiary's benefit under section 4050(a)(3) of ERISA has been correctly computed based on the designated benefit paid to the PBGC under section 4050(b)(2) of ERISA, or (ii) That the designated benefit is correct, but only to the extent that the benefit to be paid does not exceed the participant's or beneficiary's guaranteed benefit. (c) Matters not covered by this part. Nothing in this part limits-- (1) The authority of the PBGC to review, either upon request or on its own initiative, a determination to which this part does not apply when, in its discretion, the PBGC determines that it would be appropriate to do so, or (2) The procedure that the PBGC may utilize in reviewing any determination to which this part does not apply. Sec. 4003.2 Definitions. The following terms are defined in Sec. 4001.2 of this chapter: Code, contributing sponsor, controlled group, ERISA, multiemployer plan, PBGC, person, plan administrator, and single-employer plan. In addition, for purposes of this part: Aggrieved person means any participant, beneficiary, plan administrator, contributing sponsor of a single-employer plan or member of such a contributing sponsor's controlled group, plan sponsor of a multiemployer plan, or employer that is adversely affected by an initial determination of the PBGC with respect to a pension plan in which such person has an interest. The term ``beneficiary'' includes an alternate payee (within the meaning of section 206(d)(3)(K) of ERISA) under a qualified domestic relations order (within the meaning of section 206(d)(3)(B) of ERISA). Appeals Board means a board consisting of three PBGC officials. The Executive Director shall appoint a senior PBGC official to serve as Chairperson and three or more other PBGC officials to serve as regular Appeals Board members. The Chairperson shall designate the three officials who will constitute the Appeals Board with respect to a case, provided that a person may not serve on the Appeals Board with respect to a case in which he or she made a decision regarding the merits of the determination being appealed. The Chairperson need not serve on the Appeals Board with respect to all cases. Appellant means any person filing an appeal under subpart D of this part. Director means the Director of any department of the PBGC and includes the Executive Director of the PBGC, Deputy Executive Directors, and the General Counsel. Sec. 4003.3 PBGC assistance in obtaining information. A person who lacks information or documents necessary to file a request for review pursuant to subpart C or D of this part, or necessary to a decision whether to seek review, or necessary to participate in an appeal pursuant to Sec. 4003.57 of this part or necessary to a decision whether to participate, may request the PBGC's assistance in obtaining information or documents in the possession of a party other than the PBGC. The request shall state or describe the missing information or documents, the reason why the person needs the information or documents, and the reason why the person needs the assistance of the PBGC in obtaining the information or documents. The request may also include a request for an extension of time to file pursuant to Sec. 4003.4 of this part. Sec. 4003.4 Extension of time. (a) General rule. When a document is required under this part to be filed within a prescribed period of time, an extension of time to file will be granted only upon good cause shown and only [[Page 34014]] when the request for an extension is made before the expiration of the time prescribed. The request for an extension shall be in writing and state why additional time is needed and the amount of additional time requested. The filing of a request for an extension shall stop the running of the prescribed period of time. When a request for an extension is granted, the PBGC shall notify the person requesting the extension, in writing, of the amount of additional time granted. When a request for an extension is denied, the PBGC shall so notify the requestor in writing, and the prescribed period of time shall resume running from the date of denial. (b) Disaster relief. When the President of the United States declares that, under the Disaster Relief Act of 1974, as amended (42 U.S.C. 5121, 5122(2), 5141(b)), a major disaster exists, the Executive Director of the PBGC (or his or her designee) may, by issuing one or more notices of disaster relief, extend the due date for filing a request for reconsideration under Sec. 4003.32 or an appeal under Sec. 4003.52 by up to 180 days. (1) The due date extension or extensions shall be available only to an aggrieved person who is residing in, or whose principal place of business is within, a designated disaster area, or with respect to whom the office of the service provider, bank, insurance company, or other person maintaining the information necessary to file the request for reconsideration or appeal is within a designated disaster area; and (2) The request for reconsideration or appeal shall identify the filing as one for which the due date extension is available. Sec. 4003.5 Non-timely request for review. The PBGC will process a request for review of an initial determination that was not filed within the prescribed period of time for requesting review (see Secs. 4003.32 and 4003.52) if-- (a) The person requesting review demonstrates in his or her request that he or she did not file a timely request for review because he or she neither knew nor, with due diligence, could have known of the initial determination; and (b) The request for review is filed within 30 days after the date the aggrieved person, exercising due diligence at all relevant times, first learned of the initial determination where the requested review is reconsideration, or within 45 days after the date the aggrieved person, exercising due diligence at all relevant times, first learned of the initial determination where the request for review is an appeal. Sec. 4003.6 Representation. A person may file any document or make any appearance that is required or permitted by this part on his or her own behalf or he or she may designate a representative. When the representative is not an attorney-at-law, a notarized power of attorney, signed by the person making the designation, which authorizes the representation and specifies the scope of representation shall be filed with the PBGC in accordance with Sec. 4003.9(b) of this part. Sec. 4003.7 Exhaustion of administrative remedies. Except as provided in Sec. 4003.22(b), a person aggrieved by an initial determination of the PBGC covered by this part, other than a determination subject to reconsideration that is issued by a Department Director, has not exhausted his or her administrative remedies until he or she has filed a request for reconsideration under subpart C of this part or an appeal under subpart D of this part, whichever is applicable, and a decision granting or denying the relief requested has been issued. Sec. 4003.8 Request for confidential treatment. If any person filing a document with the PBGC believes that some or all of the information contained in the document is exempt from the mandatory public disclosure requirements of the Freedom of Information Act, 5 U.S.C. 552, he or she shall specify the information with respect to which confidentiality is claimed and the grounds therefor. Sec. 4003.9 Filing of documents. (a) Date of filing. Any document required or permitted to be filed under this part is considered filed on the date of the United States postmark stamped on the cover in which the document is mailed, provided that-- (1) The postmark was made by the United States Postal Service; and (2) The document was mailed postage prepaid, properly packaged and addressed to the PBGC. If the conditions stated in both paragraphs (a)(1) and (a)(2) of this section are not met, the document is considered filed on the date it is received by the PBGC. Documents received after regular business hours are considered filed on the next regular business day. (b) Where to file. Any document required or permitted to be filed under this part in connection with a request for reconsideration shall be submitted to the Director of the department within the PBGC that issued the initial determination. Any document required or permitted to be filed under this part in connection with an appeal shall be submitted to the Appeals Board, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005-4026. Sec. 4003.10 Computation of time. In computing any period of time prescribed or allowed by this part, the day of the act, event, or default from which the designated period of time begins to run is not counted. The last day of the period so computed shall be included, unless it is a Saturday, Sunday, or Federal holiday, in which event the period runs until the end of the next day which is not a Saturday, Sunday, or a Federal holiday. Subpart B--Initial Determinations Sec. 4003.21 Form and contents of initial determinations. All determinations to which this subpart applies shall be in writing, shall state the reason for the determination, and, except when effective on the date of issuance as provided in Sec. 4003.22(b), shall contain notice of the right to request review of the determination pursuant to subpart C or subpart D of this part, as applicable, and a brief description of the procedures for requesting review. Sec. 4003.22 Effective date of determinations. (a) General Rule. Except as provided in paragraph (b) of this section, an initial determination covered by this subpart will not become effective until the prescribed period of time for filing a request for reconsideration under subpart C of this part or an appeal under subpart D of this part, whichever is applicable, has elapsed. The filing of a request for review under subpart C or D of this part shall automatically stay the effectiveness of a determination until a decision on the request for review has been issued by the PBGC. (b) Exception. The PBGC may, in its discretion, order that the initial determination in a case is effective on the date it is issued. When the PBGC makes such an order, the initial determination shall state that the determination is effective on the date of issuance and that there is no obligation to exhaust administrative remedies with respect to that determination by seeking review of it by the PBGC. [[Page 34015]] Subpart C--Reconsideration of Initial Determinations Sec. 4003.31 Who may request reconsideration. Any person aggrieved by an initial determination of the PBGC to which this subpart applies may request reconsideration of the determination. Sec. 4003.32 When to request reconsideration. Except as provided in Secs. 4003.4 and 4003.5, a request for reconsideration must be filed within 30 days after the date of the initial determination of which reconsideration is sought or, when administrative review includes a procedure in Sec. 4903.33 of this chapter, by a date 60 days (or more) thereafter that is specified in the PBGC's notice of the right to request review. Sec. 4003.33 Where to submit request for reconsideration. A request for reconsideration shall be submitted to the Director of the department within the PBGC that issued the initial determination, except that a request for reconsideration of a determination described in Sec. 4003.1(b)(3)(ii) shall be submitted to the Executive Director. Sec. 4003.34 Form and contents of request for reconsideration. A request for reconsideration shall-- (a) Be in writing; (b) Be clearly designated as a request for reconsideration; (c) Contain a statement of the grounds for reconsideration and the relief sought; and (d) Reference all pertinent information already in the possession of the PBGC and include any additional information believed to be relevant. Sec. 4003.35 Final decision on request for reconsideration. (a) Except as provided in paragraphs (a)(1) or (a)(2), final decisions on requests for reconsideration will be issued by the same department of the PBGC that issued the initial determination, by an official whose level of authority in that department is higher than that of the person who issued the initial determination. (1) When an initial determination is issued by a Department Director, the Department Director (or an official designated by the Department Director) will issue the final decision on request for reconsideration of a determination other than one described in Sec. 4003.1(b)(3)(ii). (2) The Executive Director (or an official designated by the Executive Director) will issue the final decision on a request for reconsideration of a determination described in Sec. 4003.1(b)(3)(ii). (b) The final decision on a request for reconsideration shall be in writing, specify the relief granted, if any, state the reason(s) for the decision, and state that the person has exhausted his or her administrative remedies. Subpart D--Administrative Appeals Sec. 4003.51 Who may appeal or participate in appeals. Any person aggrieved by an initial determination to which this subpart applies may file an appeal. Any person who may be aggrieved by a decision under this subpart granting the relief requested in whole or in part may participate in the appeal in the manner provided in Sec. 4003.57. Sec. 4003.52 When to file. Except as provided in Secs. 4003.4 and 4003.5, an appeal under this subpart must be filed within 45 days after the date of the initial determination being appealed or, when administrative review includes a procedure in Sec. 4903.33 of this chapter, by a date 60 days (or more) thereafter that is specified in the PBGC's notice of the right to request review. Sec. 4003.53 Where to file. An appeal or a request for an extension of time to appeal shall be submitted to the Appeals Board, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005-4026. Sec. 4003.54 Contents of appeal. (a) An appeal shall-- (1) Be in writing; (2) Be clearly designated as an appeal; (3) Contain a statement of the grounds upon which it is brought and the relief sought; (4) Reference all pertinent information already in the possession of the PBGC and include any additional information believed to be relevant; (5) State whether the appellant desires to appear in person or through a representative before the Appeals Board; and (6) State whether the appellant desires to present witnesses to testify before the Appeals Board, and if so, state why the presence of witnesses will further the decision-making process. (b) In any case where the appellant believes that another person may be aggrieved if the PBGC grants the relief sought, the appeal shall also include the name(s) and address(es) (if known) of such other person(s). Sec. 4003.55 Opportunity to appear and to present witnesses. (a) At the discretion of the Appeals Board, any appearance permitted under this subpart may be before a hearing officer designated by the Appeals Board. (b) An opportunity to appear before the Appeals Board (or a hearing officer) and an opportunity to present witnesses will be permitted at the discretion of the Appeals Board. In general, an opportunity to appear will be permitted if the Appeals Board determines that there is a dispute as to a material fact; an opportunity to present witnesses will be permitted when the Appeals Board determines that witnesses will contribute to the resolution of a factual dispute. (c) Appearances permitted under this section will take place at the main offices of the PBGC, 1200 K Street NW., Washington, DC 20005-4026, unless the Appeals Board, in its discretion, designates a different location, either on its own initiative or at the request of the appellant or a third party participating in the appeal. Sec. 4003.56 Consolidation of appeals. (a) When consolidation may be required. Whenever multiple appeals are filed that arise out of the same or similar facts and seek the same or similar relief, the Appeals Board may, in its discretion, order the consolidation of all or some of the appeals. (b) Representation of parties. Whenever the Appeals Board orders the consolidation of appeals, the appellants may designate one (or more) of their number to represent all of them for all purposes relating to their appeals. (c) Decision by Appeals Board. The decision of the Appeals Board in a consolidated appeal shall be binding on all appellants whose appeals were subject to the consolidation. Sec. 4003.57 Appeals affecting third parties. (a) Before the Appeals Board issues a decision granting, in whole or in part, the relief requested in an appeal, it shall make a reasonable effort to notify third persons who will be aggrieved by the decision of the following: (1) The pendency of the appeal; (2) The grounds upon which the appeal is based; (3) The grounds upon which the Appeals Board is considering reversing the initial determination; (4) The right to submit written comments on the appeal; (5) The right to request an opportunity to appear in person or through a representative before the Appeals Board and to present witnesses; and (6) That no further opportunity to present information to the PBGC with [[Page 34016]] respect to the determination under appeal will be provided. (b) Written comments and a request to appear before the Appeals Board must be filed within 45 days after the date of the notice from the Appeals Board. (c) If more than one third party is involved, their participation in the appeal may be consolidated pursuant to the provisions of Sec. 4003.56. Sec. 4003.58 Powers of the Appeals Board. In addition to the powers specifically described in this part, the Appeals Board may request the submission of any information or the appearance of any person it considers necessary to resolve a matter before it and to enter any order it considers necessary for or appropriate to the disposition of any matter before it. Sec. 4003.59 Decision by the Appeals Board. (a) In reaching its decision, the Appeals Board shall consider those portions of the file relating to the initial determination, all material submitted by the appellant and any third parties in connection with the appeal, and any additional information submitted by PBGC staff. (b) The decision of the Appeals Board constitutes the final agency action by the PBGC with respect to the determination which was the subject of the appeal and is binding on all parties who participated in the appeal and who were notified pursuant to Sec. 4003.57 of their right to participate in the appeal. (c) The decision of the Appeals Board shall be in writing, specify the relief granted, if any, state the bases for the decision, including a brief statement of the facts or legal conclusions supporting the decision, and state that the appellant has exhausted his or her administrative remedies. Sec. 4003.60 Referral of appeal to the Executive Director. The Appeals Board may, in its discretion, refer any appeal to the Executive Director of the PBGC for decision. In such a case, the Executive Director shall have all the powers vested in the Appeals Board by this subpart and the decision of the Executive Director shall meet the requirements of and have the effect of a decision issued under Sec. 4003.59 of this part. PART 4006--PREMIUM RATES Sec. 4006.1 Purpose and scope. 4006.2 Definitions. 4006.3 Premium rate. 4006.4 Determination of unfunded vested benefits. 4006.5 Exemptions and special rules. Authority: 29 U.S.C. 1302(b)(3), 1306, 1307. Sec. 4006.1 Purpose and scope. This part, which applies to all plans covered by title IV of ERISA, provides rules for computing the premiums imposed by sections 4006 and 4007 of ERISA. (See part 4007 of this chapter for rules for the payment of premiums, including due dates and late payment charges.) Sec. 4006.2 Definitions. The following terms are defined in Sec. 4001.2 of this chapter: Code, contributing sponsor, ERISA, fair market value, insurer, irrevocable commitment, multiemployer plan, notice of intent to terminate, PBGC, plan administrator, plan, plan year, and single- employer plan. In addition, for purposes of this part: New plan means a plan that became effective within the premium payment year and includes a plan resulting from a consolidation or spinoff. A plan that meets this definition is considered to be a new plan even if the plan constitutes a successor plan within the meaning of section 4021(a) of ERISA. Newly-covered plan means a plan that is not a new plan and that was not covered by title IV of ERISA immediately prior to the premium payment year. Participant means any individual who is included in one of the categories below: (a) Active. (1) Any individual who is currently in employment covered by the plan and who is earning or retaining credited service under the plan. This category includes any individual who is considered covered under the plan for purposes of meeting the minimum coverage requirements, but because of offset or other provisions (including integration with Social Security benefits), the individual does not have any accrued benefits. (2) Any non-vested individual who is not currently in employment covered by the plan but who is earning or retaining credited service under the plan. This category does not include a non-vested former employee who has incurred a break in service the greater of one year or the break in service period specified in the plan. (b) Inactive--(1) Inactive receiving benefits. Any individual who is retired or separated from employment covered by the plan and who is receiving benefits under the plan. This category does not include an individual to whom an insurer has made an irrevocable commitment to pay all the benefits to which the individual is entitled under the plan. (2) Inactive entitled to future benefits. Any individual who is retired or separated from employment covered by the plan and who is entitled to begin receiving benefits under the plan in the future. This category does not include an individual to whom an insurer has made an irrevocable commitment to pay all the benefits to which the individual is entitled under the plan. (c) Deceased. Any deceased individual who has one or more beneficiaries who are receiving or entitled to receive benefits under the plan. This category does not include an individual if an insurer has made an irrevocable commitment to pay all the benefits to which the beneficiaries of that individual are entitled under the plan. Premium payment year means the plan year for which the premium is being paid. Short plan year means a plan year that is less than twelve full months. Sec. 4006.3 Premium rate. Subject to the provisions of Sec. 4006.5 (dealing with exemptions and special rules), the premium paid for basic benefits guaranteed under section 4022(a) of ERISA shall equal the flat-rate premium under paragraph (a) of this section plus, in the case of a single-employer plan, the variable-rate premium under paragraph (b) of this section. (a) Flat-rate premium. The flat-rate premium is equal to the number of participants in the plan on the last day of the plan year preceding the premium payment year, multiplied by-- (1) $19 for a single-employer plan, or (2) $2.60 for a multiemployer plan. (b) Variable-rate premium. The variable-rate premium is $9 for each $1,000 of a single-employer plan's unfunded vested benefits, as determined under Sec. 4006.4. Sec. 4006.4 Determination of unfunded vested benefits. (a) General rule. Except as permitted by paragraph (c) of this section or as provided in the exemptions and special rules under Sec. 4006.5, the amount of a plan's unfunded vested benefits (as defined in paragraph (b) of this section) shall be determined as of the last day of the plan year preceding the premium payment year, based on the plan provisions and the plan's population as of that date. The determination shall be made in accordance with paragraph (a)(1) or (a)(2), and shall be certified to in accordance with paragraph (a)(4). (1) The unfunded vested benefits shall be determined using the actuarial assumptions and methods described in [[Page 34017]] paragraph (a)(3) for the plan year preceding the premium payment year (or, in the case of a new or newly-covered plan, for the premium payment year), except to the extent that other actuarial assumptions or methods are specifically prescribed by this section or are necessary to reflect the occurrence of a significant event described in paragraph (d) of this section between the date of the funding valuation and the last day of the plan year preceding the premium payment year. (If the plan does a valuation as of the last day of the plan year preceding the premium payment year, no separate adjustment for significant events is needed.) (2) Under this rule, the determination of the unfunded vested benefits may be based on a plan valuation done as of the first day of the premium payment year, provided that-- (i) The actuarial assumptions and methods used are those described in paragraph (a)(3) for the premium payment year, except to the extent that other actuarial assumptions or methods are specifically prescribed by this section or are required to make the adjustment described in paragraph (a)(2)(ii) of this section; and (ii) If an enrolled actuary determines that there is a material difference between the values determined under the valuation and the values that would have been determined as of the last day of the preceding plan year, the valuation results are adjusted to reflect appropriately the values as of the last day of the preceding plan year. (This adjustment need not be made if the unadjusted valuation would result in greater unfunded vested benefits.) (3) For purposes of paragraphs (a)(1) and (a)(2), the actuarial assumptions and methods for a plan year are those used by the plan for purposes of determining the additional funding requirement under section 302(d) of ERISA and section 412(1) of the Code (or, in the case of a plan that is not required to determine such additional funding requirement, any assumptions and methods that would be permitted for such purpose if the plan were so required). (4) In the case of any plan that determines the amount of its unfunded vested benefits under the general rule described in this paragraph, an enrolled actuary must certify, in accordance with the PBGC annual Premium Payment Package provided for in Sec. 4007.3 of this part, that the determination was made in a manner consistent with generally accepted actuarial principles and practices. (b) Unfunded vested benefits. The amount of a plan's unfunded vested benefits under this section shall be the excess of the plan's vested benefits amount (determined under paragraph (b)(1) of this section) over the value of the plan's assets (determined under paragraph (b)(2) of this section). (1) Vested benefits amount. A plan's vested benefits amount under this section shall be the plan's current liability (within the meaning of section 302(d)(7) of ERISA and section 412(1)(7) of the Code) determined by taking into account only vested benefits and by using an interest rate equal to the applicable percentage of the annual yield for 30-year Treasury constant maturities, as reported in Federal Reserve Statistical Release G.13 and H.15, for the calendar month preceding the calendar month in which the premium payment year begins. If the interest rate (or rates) used by the plan to determine current liability was (or were all) not greater than the required interest rate, the vested benefits need not be revalued if an enrolled actuary certifies that the interest rate (or interest rates) used was (or were all) not greater than the required interest rate. For purposes of this paragraph (b)(1) (subject to the provisions of Sec. 4006.5(g), dealing with plans of regulated public utilities), the applicable percentage is-- (i) For a premium payment year that begins before July 1997, 80 percent; (ii) For a premium payment year that begins after June 1997 and before the first premium payment year to which the first tables prescribed under section 302(d)(7)(C)(ii)(II) of ERISA and section 412(1)(7)(C)(ii)(II) of the Code apply, 85 percent; and (iii) For the first premium payment year to which the first tables prescribed under section 302(d)(7)(C)(ii)(II) of ERISA and section 412(1)(7)(C)(ii)(II) of the Code apply and any subsequent plan year, 100 percent. (2) Value of assets. (i) Actuarial value. For a premium payment year that is described in paragraph (b)(1)(i) or (b)(1)(ii) of this section, the value of the plan's assets shall be their actuarial value determined in accordance with section 302(c)(2) of ERISA and section 412(c)(2) of the Code. (ii) Fair market value. For a premium payment year that is described in paragraph (b)(1)(iii) of this section, the value of the plan's assets shall be their fair market value. (iii) Use of credit balance. The value of the plan's assets shall not be reduced by a credit balance in the funding standard account. (iv) Contributions. Contributions owed for any plan year preceding the premium payment year shall be included for plans with 500 or more participants and may be included for any other plan. Contributions may be included only to the extent such contributions have been paid into the plan on or before the earlier of the due date for payment of the variable-rate portion of the premium under Sec. 4007.11 or the date that portion is paid. Contributions included that are paid after the last day of the plan year preceding the premium payment year shall be discounted at the plan asset valuation rate (on a simple or compound basis in accordance with the plan's discounting rules) to such last day to reflect the date(s) of payment. Contributions for the premium payment year may not be included for any plan. (c) Alternative method for calculating unfunded vested benefits. In lieu of determining the amount of the plan's unfunded vested benefits pursuant to paragraph (a) of this section, a plan administrator may calculate the amount of a plan's unfunded vested benefits under this paragraph (c) using the plan's Form 5500, Schedule B, for the plan year preceding the premium payment year. Pursuant to this paragraph (c), unfunded vested benefits shall be determined, in accordance with the Premium Payment Package, from values for the plan's vested benefits and assets that are required to be reported on the plan's Schedule B. The value of the vested benefits shall be adjusted in accordance with paragraph (c)(1) of this section to reflect accruals during the plan year preceding the premium payment year and with paragraph (c)(2) of this section to reflect the interest rate prescribed in paragraph (b)(1) of this section, and the value of the assets shall be adjusted in accordance with paragraph (c)(4) of this section. (If the plan administrator certifies that the interest rate (or rates) used to determine the vested benefit values taken from the Schedule B was (or were all) not greater than the interest rate prescribed in paragraph (b)(1) of this section, the interest rate adjustment prescribed in paragraph (c)(2) of this section is not required.) The resulting unfunded vested benefits amount shall be adjusted in accordance with paragraph (c)(5) of this section to reflect the passage of time from the date of the Schedule B data to the last day of the plan year preceding the premium payment year. (1) Vested benefits adjustment for accruals. The total value of the plan's current liability as of the first day of the plan year preceding the premium payment year for vested benefits of active and terminated vested participants not in pay status, computed in accordance with section 302(d)(7) of ERISA and section 412(l)(7) of the Code, [[Page 34018]] shall be adjusted to reflect the increase in vested benefits attributable to accruals during the plan year preceding the premium payment year by multiplying that value by 1.07. (2) Vested benefits interest rate adjustment. The value of vested benefits as entered on the Schedule B shall be adjusted in accordance with the following formula (except as provided in paragraph (c)(3) of this section) to reflect the interest rate prescribed in paragraph (b)(1) of this section: VBadj=VBPAY x .94(RIR-BIR)+VBNON-PAY x .94(RIR-BIR) x ((100+BIA)/(100+RIR))(ARA-50); where-- (i) VBadj is the adjusted vested benefits amount (as of the first day of the plan year preceding the premium payment year) under the alternative calculation method; (ii) VBPAY is the plan's current liability as of the first day of the plan year preceding the premium payment year for vested benefits of participants and beneficiaries in pay status, computed in accordance with section 302(d)(7) of ERISA and section 412(l)(7) of the Code; (iii) VBNON-PAY is the total of the plan's current liability as of the first day of the plan year preceding the premium payment year for vested benefits of active and terminated vested participants not in pay status, computed in accordance with section 302(d)(7) of ERISA and section 412(l)(7) of the Code, multiplied by 1.07 in accordance with paragraph (c)(1) of this section; (iv) RIR is the required interest rate prescribed in paragraph (b)(1) of this section; (v) BIR is the post-retirement current liability interest rate used to determine the pay-status current liability figure referred to in paragraph (c)(2)(ii) of this section; (vi) BIA is the pre-retirement current liability interest rate used to determine the pre-pay-status current liability figures referred to in paragraph (c)(2)(iii) of this section; and (vii) ARA is the plan's assumed weighted average retirement age. (3) Optional use of substitution factors in interest rate adjustment formula. In lieu of the term, .94 (RIR-BIR), in the formula prescribed by paragraph (c)(2) of this section, a plan administrator may use the optional substitution factor provided in the Premium Payment Package. (4) Adjusted value of plan assets. The value of plan assets shall be the actuarial value of plan assets as of the first day of the plan year preceding the premium payment year, determined in accordance with section 302(c)(2) of ERISA and section 412(c)(2) of the Code without reduction for any credit balance in the plan's funding standard account, unless that amount was determined as of a date other than the first day of the plan year preceding the premium payment year or the premium payment year is described in Sec. 4006.4(b)(1)(iii). In either of those events, the value of plan assets shall be the current value of assets (as reported on Form 5500) as of that first day or (if Form 5500-EZ is filed) as of the last day of the plan year preceding the Schedule B year. The value of assets from the Schedule B shall be adjusted in accordance with paragraph (b)(2) of this section, except that the amount of all contributions that are included in the value of assets and that were made after the first day of the plan year preceding the premium payment year shall be discounted to such first day at the interest rate prescribed in paragraph (b)(1) of this section for the premium payment year, compounded annually except that simple interest may be used for any partial years. (5) Adjustment for passage of time. The amount of the plan's unfunded vested benefits shall be adjusted to reflect the passage of time between the date of the Schedule B data (the first day of the plan year preceding the premium payment year) and the last day of the plan year preceding the premium payment year in accordance with the following formula: UVBadj=(VBadj-Aadj) x (1+RIR/100)Y; where-- (i) UVBadj is the amount of the plan's adjusted unfunded vested benefits; (ii) VBadj is the value of the adjusted vested benefits calculated in accordance with paragraphs (c)(1) and (c)(2) of this section; (iii) Aadj is the adjusted asset amount calculated in accordance with paragraph (c)(3) of this section; (iv) RIR is the required interest rate prescribed in paragraph (b)(1) of this section; and (v) Y is deemed to be equal to 1 (unless the plan year preceding the premium payment year is a short plan year, in which case Y is the number of years between the first day and the last day of the short plan year, expressed as a decimal fraction of 1.0 with two digits to the right of the decimal point). (d) Restrictions on alternative calculation method for large plans. (1) The alternative calculation method described in paragraph (c) of this section may be used for a plan with 500 or more participants as of the last day of the plan year preceding the premium payment year only if-- (i) No significant event, as described in paragraph (d)(2) of this section, has occurred between the first day and the last day of the plan year preceding the premium payment year, and an enrolled actuary so certifies in accordance with the Premium Payment Package; or (ii) An enrolled actuary makes an appropriate adjustment to the value of unfunded vested benefits to reflect the occurrence of significant events that have occurred between those dates and certifies to that fact in accordance with the Premium Payment Package. (2) The significant events described in this paragraph are-- (i) An increase in the plan's actuarial costs (consisting of the plan's normal cost under section 302(b)(2)(A) of ERISA and section 412(b)(2)(A) of the Code, amortization charges under section 302(b)(2)(B) of ERISA and section 412(b)(2)(B) of the Code, and amortization credits under section 302(b)(3)(B) of ERISA and section 412(b)(3)(B) of the Code) attributable to a plan amendment, unless the cost increase attributable to the amendment is less than 5 percent of the actuarial costs determined without regard to the amendment; (ii) The extension of coverage under the plan to a new group of employees resulting in an increase of 5 percent or more in the plan's liability for accrued benefits; (iii) A plan merger, consolidation or spinoff that is not de minimis pursuant to the regulations under section 414(l) of the Code; (iv) The shutdown of any facility, plant, store, etc., that creates immediate eligibility for benefits that would not otherwise be immediately payable for participants separating from service; (v) The offer by the plan for a temporary period to permit participants to retire at benefit levels greater than that to which they would otherwise be entitled; (vi) A cost-of-living increase for retirees resulting in an increase of 5 percent or more in the plan's liability for accrued benefits; and (vii) Any other event or trend that results in a material increase in the value of unfunded vested benefits. Sec. 4006.5 Exemptions and special rules. (a) Variable-rate premium exemptions. A plan described in any of paragraphs (a)(1)-(a)(5) of this section is not required to determine its unfunded vested benefits under Sec. 4006.4 and does not owe a variable-rate premium under Sec. 4006.3(b). (1) Certain fully funded plans. A plan is described in this paragraph if the plan had fewer than 500 participants on the [[Page 34019]] last day of the plan year preceding the premium payment year, and an enrolled actuary certifies in accordance with the Premium Payment Package that, as of that date, the plan had no unfunded vested benefits (valued at the interest rate prescribed in Sec. 4006.4(b)(1)). (2) Plans without vested benefit liabilities. A plan is described in this paragraph if it did not have any participants with vested benefits as of the last day of the plan year preceding the premium payment year, and the plan administrator so certifies in accordance with the Premium Payment Package. (3) Section 412(i) plans. A plan is described in this paragraph if the plan was a plan described in section 412(i) of the Code and the regulations thereunder at all times during the plan year preceding the premium payment year and the plan administrator so certifies, in accordance with the Premium Payment Package. If the plan is a new plan or a newly-covered plan, the certification under this paragraph shall be made as of the due date for the premium under Sec. 4007.11(c) and shall certify to the plan's status at all times during the premium payment year through such due date. (4) Plans terminating in standard terminations. The exemption for a plan described in this paragraph is conditioned upon the plan's making a final distribution of assets in a standard termination. If a plan is ultimately unable to do so, the exemption is revoked and all variable- rate amounts not paid pursuant to this exemption are due retroactive to the applicable due date(s). A plan is described in this paragraph if-- (i) The plan administrator has issued notices of intent to terminate the plan in a standard termination in accordance with section 4041(a)(2) of ERISA; and (ii) The proposed termination date set forth in the notice of intent to terminate is on or before the last day of the plan year preceding the premium payment year. (5) Plans at full funding limit. A plan is described in this paragraph if, on or before the earlier of the due date for payment of the variable-rate portion of the premium under Sec. 4007.11 or the date that portion is paid, the plan's contributing sponsor or contributing sponsors made contributions to the plan for the plan year preceding the premium payment year in an amount not less than the full funding limitation for such preceding plan year under section 302(c)(7) of ERISA and section 412(c)(7) of the Code (determined in accordance with paragraphs (a)(5)(i) and (a)(5)(ii) of this section). In order for a plan to qualify for this exemption, an enrolled actuary must certify that the plan has met the requirements of this paragraph. (i) Determination of full funding limitation. The determination of whether contributions for the preceding plan year were in an amount not less than the full funding limitation under section 302(c)(7) of ERISA and section 412(c)(7) of the Code for such preceding plan year shall be based on the methods of computing the full funding limitation, including actuarial assumptions and funding methods, used by the plan (provided such assumptions and methods met all requirements, including the requirements for reasonableness, under section 302 of ERISA and section 412 of the Code) with respect to such preceding plan year. Plan assets shall not be reduced by the amount of any credit balance in the plan's funding standard account. (ii) Rounding of de minimis amounts. Any contribution that is rounded down to no less than the next lower multiple of one hundred dollars (in the case of full funding limitations up to one hundred thousand dollars) or to no less than the next lower multiple of one thousand dollars (in the case of full funding limitations above one hundred thousand dollars) shall be deemed for purposes of this paragraph to be in an amount equal to the full funding limitation. (b) Special rule for determining vested benefits for certain large plans. With respect to a plan that had 500 or more participants on the last day of the plan year preceding the premium payment year, if an enrolled actuary determines pursuant to Sec. 4006.4(a) that the actuarial value of plan assets equals or exceeds the value of all benefits accrued under the plan (valued at the interest rate prescribed in Sec. 4006.4(b)(1)), the enrolled actuary need not determine the value of the plan's vested benefits, and may instead report in the Premium Payment Package the value of the accrued benefits. (c) Special rule for determining unfunded vested benefits for plans terminating in distress or involuntary terminations. A plan described in this paragraph may determine its unfunded vested benefits by using the special alternative calculation method set forth in this paragraph. A plan is described in this paragraph if it has issued notices of intent to terminate in a distress termination in accordance with section 4041(a)(2) of ERISA with a proposed termination date on or before the last day of the plan year preceding the premium payment year, or if the PBGC has instituted proceedings to terminate the plan in accordance with section 4042 of ERISA and has sought a termination date on or before the last day of the plan year preceding the premium payment year. Pursuant to this paragraph, a plan shall determine its unfunded vested benefits in accordance with the alternative calculation method in Sec. 4006.4(c), except that-- (1) The calculation shall be based on the Form 5500, Schedule B, for the plan year which includes (in the case of a distress termination) the proposed termination date or (in the case of an involuntary termination) the termination date sought by the PBGC, or, if no Schedule B is filed for that plan year, on the Schedule B for the immediately preceding plan year; (2) All references in Sec. 4006.4(c) and Sec. 4006.4(d) to the first day of the plan year preceding the premium payment year shall be deemed to refer to the first day of the plan year for which the Schedule B was filed; (3) The value of the sum of the plan's current liability as of the first day of the plan year preceding the premium payment year for vested benefits of active and terminated vested participants not in pay status, computed in accordance with section 302(d)(7) of ERISA and section 412(l)(7) of the Code, shall be adjusted (in lieu of the adjustment required by Sec. 4006.4(c)(1)) by multiplying that value by the sum of 1 plus the product of .07 and the number of years (rounded to the nearest hundredth of a year) between the date of the Schedule B data and (in the case of a distress termination) the proposed termination date or (in the case of an involuntary termination) the termination date sought by the PBGC; and (4) The exponent, ``Y,'' in the time adjustment formula of Sec. 4006.4(c)(5) shall be deemed to equal the number of years (rounded to the nearest hundredth of a year) between the date of the Schedule B data and the last day of the plan year preceding the premium payment year. (d) Special determination date rule for new and newly-covered plans. In the case of a new plan or a newly-covered plan, all references in Secs. 4006.3, 4006.4, and paragraphs (a) and (b) of this section to the last day of the plan year preceding the premium payment year shall be deemed to refer to the first day of the premium payment year or, if later, the date on which the plan became effective for benefit accruals for future service, and for purposes of determining the plan's premium, the number of plan participants, and (for a single- employer plan) the amount of the plan's unfunded vested benefits and the applicability of any exemption or special rule under [[Page 34020]] paragraph (a) or (b) of this section, shall be determined as of such first day or later date. (e) Special determination date rule for certain mergers and spinoffs. (1) With respect to a plan described in paragraph (e)(2) of this section, all references in Secs. 4006.3, 4006.4, and this section, as applicable, to the last day of the plan year preceding the premium payment year shall be deemed to refer to the first day of the premium payment year. (2) A plan is described in this paragraph (e)(2) if-- (i) The plan engages in a merger or spinoff that is not de minimis pursuant to the regulations under section 414(l) of the Code (in the case of single-employer plans) or pursuant to part 4231 of this chapter (in the case of multiemployer plans), as applicable; (ii) The merger or spinoff is effective on the first day of the plan's premium payment year; and (iii) The plan is the transferee plan in the case of a merger or the transferor plan in the case of a spinoff. (f) Special refund rule for certain short plan years. A plan described in this paragraph (f) is entitled to a refund for a short plan year. The amount of the refund will be determined by prorating the premium for the short plan year by the number of months (treating a part of a month as a month) in the short plan year. A plan is described in this paragraph if-- (1) The plan is a new or newly-covered plan that becomes effective for premium purposes on a date other than the first day of its first plan year; (2) The plan adopts an amendment changing its plan year, resulting in a short plan year; (3) The plan's assets are distributed pursuant to the plan's termination, in which case the short plan year for purposes of computing the amount of the refund under this paragraph shall be deemed to end on the asset distribution date or, if later (in the case of a single-employer plan), the date 30 days prior to the date the PBGC receives the plan's post-distribution certification; or (4) The plan is a single-employer plan and a trustee of the plan is appointed pursuant to section 4042 of ERISA, in which case the short plan year for purposes of computing the amount of the refund under this paragraph shall be deemed to end on the date of appointment. (g) Special rules for plans of regulated public utilities. (1) This paragraph (g) applies to a premium payment year beginning before 1998 of a plan maintained by one or more contributing sponsors at least one of which is a regulated public utility. For this purpose, a regulated public utility is one that, as of the beginning of the premium payment year, is described in section 7701(a)(33)(A)(i) of the Code and has not begun to collect from utility customers rates that reflect the costs incurred or projected to be incurred for additional premiums under section 4006(a)(3)(E) of ERISA pursuant to final and nonappealable determinations by all public utility commissions (or other authorities having jurisdiction over the rates and terms of service by the regulated public utility) that the costs are just and reasonable and recoverable from customers of the regulated public utility. (2) Limitation on variable-rate premium and required interest rate. If every contributing sponsor of a plan described in paragraph (a) of this section is a regulated public utility, then, notwithstanding the provisions of Secs. 4006.3(b) and 4006.4(b)(1),-- (i) The variable-rate premium shall not be greater than $53 multiplied by the number of participants in the plan on the last day of the plan year preceding the premium payment year; and (ii) If the premium payment year begins after June 1997, Sec. 4006.4(b)(1) shall be applied as if the applicable percentage referred to therein were 80 percent. (3) Proportional application of limitation rules. If a plan is described in paragraph (g)(1) of this section but also has a contributing sponsor that is not a regulated public utility and participants who are not regulated public utility participants (determined under any reasonable method consistently applied among participants and from year to year), the limitations in paragraph (g)(2) of this section shall be applied in proportion to the number of regulated public utility participants in accordance with the Premium Payment Package. (4) Special variable-rate premium rule for certain small regulated public utility plans paying maximum variable-rate premium. A plan whose variable-rate premium is subject to the limitation described in paragraph (g)(2)(i) of this section is not required to determine its unfunded vested benefits under Sec. 4006.4 if-- (i) The number of participants required to be taken into account in computing the plan's premium for the premium payment year is fewer than 500; and (ii) The plan pays a variable-rate premium equal to $53 multiplied by the number of participants in the plan on the last day of the plan year preceding the premium payment year. (5) Effect of omitted or inadequate information. The variable-rate premium of a plan described in paragraph (g)(2) of this section may be deemed to be $53 multiplied by the number of participants in the plan on the last day of the plan year preceding the premium payment year if-- (i) Any item or items necessary to establish the correct variable- rate premium for the plan are omitted from the plan's premium filing; or (ii) In connection with an audit, the plan's records fail, in the PBGC's judgment, to establish that the plan's unfunded vested benefits were of the amount reported by the plan for the premium payment year. PART 4007--PAYMENT OF PREMIUMS Sec. 4007.1 Purpose and scope. 4007.2 Definitions. 4007.3 Filing requirement and forms. 4007.4 Filing address. 4007.5 Date of filing. 4007.6 Computation of time. 4007.7 Late payment interest charges. 4007.8 Late payment penalty charges. 4007.9 Coverage for guaranteed basic benefits. 4007.10 Recordkeeping requirements; PBGC audits. 4007.11 Due dates. 4007.12 Liability for single-employer premiums. Authority: 29 U.S.C. 1302(b)(3), 1306, 1307. Sec. 4007.1 Purpose and scope. This part, which applies to all plans that are covered by title IV of ERISA, provides procedures for paying the premiums imposed by sections 4006 and 4007 of ERISA. (See part 4006 of this chapter for premium rates and computational rules.) Sec. 4007.2 Definitions. (a) The following terms are defined in Sec. 4001.2 of this chapter: Code, contributing sponsor, ERISA, insurer, IRS, multiemployer plan, notice of intent to terminate, PBGC, plan, plan administrator, plan year, and single-employer plan. (b) For purposes of this part, the following terms are defined in Sec. 4006.2 of this chapter: new plan, newly covered plan, participant, premium payment year, and short plan year. Sec. 4007.3 Filing requirement and forms. The estimation, declaration, reconciliation and payment of premiums shall be made using the forms prescribed by and in accordance with the instructions in the PBGC annual Premium Payment Package. The plan administrator of each covered plan shall [[Page 34021]] file the prescribed form or forms, and any premium payments due, no later than the applicable due date specified in Sec. 4007.11. Sec. 4007.4 Filing address. Plan administrators shall file all forms required to be filed under this part and all payments for premiums, interest, and penalties required to be made under this part at the address specified in the Premium Payment Package. Sec. 4007.5 Date of filing. (a) Any form required to be filed under this part and any payment required to be made under this part shall be deemed to have been filed or made on the date on which it is mailed. (b) A form or payment shall be presumed to have been mailed on the date on which it is postmarked by the United States Postal Service, or three days prior to the date on which it is received by the PBGC if it does not contain a legible United States Postal Service postmark. Sec. 4007.6 Computation of time. In computing any period of time prescribed by this part, the day of the act, event, or default from which the designated period of time begins to run is not counted. The last day of the period so computed shall be included, unless it is a Saturday, Sunday, or federal holiday, in w [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A96-16398. Public record. Not legal advice.