[Code of Federal Regulations]

[Title 29, Volume 9]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 29CFR4044.3]



[Page 907]

 

                             TITLE 29--LABOR

 

            CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION

 

PART 4044_ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS--Table of Contents

 

                     Subpart A_Allocation of Assets

 

Sec.  4044.3  General rule.



    (a) Asset allocation. Upon the termination of a single-employer 

plan, the plan administrator shall allocate the plan assets available to 

pay for benefits under the plan in the manner prescribed by this 

subpart. Plan assets available to pay for benefits include all plan 

assets (valued according to Sec.  4044.41(b)) remaining after the 

subtraction of all liabilities, other than liabilities for future 

benefit payments, paid or payable from plan assets under the provisions 

of the plan. Liabilities include expenses, fees and other administrative 

costs, and benefit payments due before the allocation date. Except as 

provided in Sec.  4044.4(b), an irrevocable commitment by an insurer to 

pay a benefit, which commitment is in effect on the date of the asset 

allocation, is not considered a plan asset, and a benefit payable under 

such a commitment is excluded from the allocation process.

    (b) Allocation date. For plans that close out pursuant to a Notice 

of Sufficiency under the provisions of subpart C of part 2617 of this 

chapter, assets shall be allocated as of the date plan assets are to be 

distributed. For other plans, assets shall be allocated as of the 

termination date. (See Note at beginning of part 4044.)