Guidance Document Database

Addresses calculation of partial withdrawal credit using the "modified presumptive method" where contributions are averaged over a 10-year period.

A PBGC premium must be paid for a participant in a plan even though no contributions for that participant to the plan are required because of a floor offset arrangement.

Participation in a plan maintained by more than one employer, some of which are not governmental entities, precludes the application of the Governmental plan exemption.

Conditions under which PBGC would allow a company to restore its pension plan after filing a notice to terminate.

Addresses how to reduce withdrawal liability for liability already assessed for a previous partial withdrawal. PBGC subsequently adopted a rule addressing the issue. (See 29 CFR part 4206.)

Plan meets the Nonresident Alien plan coverage exemption. All plan participants and records regarding plan located in Hong Kong.

PBGC will not insure annuities purchased by a terminated multiemployer plan and PBGC is not authorized to pay benefits when a non-insolvent multiemployer plan terminates.

Initial determination that notice of intent to terminate not valid where not issued by plan administrator, where company argued it was de facto plan administrator but plan clearly identified board to be created as plan administrator.

States the conditions that must be met for the sale of assets exception to withdrawal liability to apply; buyer did not comply with the bond/escrow and sale contract requirements.

Plan is not an Individual account plan because it does not provide for individual accounts for each participant. Plan is covered under Title IV.

A letter of credit can satisfy the bond or escrow requirement of the trucking industry exemption from withdrawal liability.

Implementation guidelines do not generally apply to a transfer of assets from a single-employer plan to a multiemployer plan, followed by the termination of the single-employer plan, but because plan termination is a prerequisite to a reversion of plan assets to an employer, PBGC will not recognize a plan termination when it is intended as a means to recover surplus plan assets without satisfying termination requirements.

A proposal to allocate post termination gains in plan assets to increase a participant’s benefits is not permissible.

PBGC examines financial information of an employer and all trades or businesses under the same common control to assess the employer’s hardship or necessity for deferred payments to meet liability.

Addresses whether foreign entities that are part of a controlled group are jointly liable for withdrawal liability.

Employees that are eligible for retirement but continue to work for a new employer after a company purchases it are not treated as retirees.

Whether an employer that purchased a division of another company and rehired its employees would be treated as a successor corporation and assume liability for existing plans.

Licensed veterinarians are “licensed practitioners of the healing arts” for purposes of the Professional Service Employer plan exemption.

Profit sharing plan is an Individual account plan which is exempt from coverage under Title IV.

Validity of demand for withdrawal liability is subject to arbitration.

Plan maintained by a Council created by a state statute meets the Governmental plan coverage exemption.

A retirement arrangement is not covered plan under Title IV because it is not tax qualified.

Addresses interest factors applicable to withdrawal liability installments paid other than quarterly.  Corrected by Opinion Letter 85-18.

PBGC’s position on guaranty of death benefit.

Funds contributed to a plan whether paid directly by the local union maintaining it or indirectly through deductions from membership dues are employer contributions and the plan is covered under Title IV