[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4043.32]

[Page 837-838]
 
                             TITLE 29--LABOR
 
            CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION
 
PART 4043_REPORTABLE EVENTS AND CERTAIN OTHER NOTIFICATION REQUIREMENTS
--Table of Contents
 
            Subpart B_Post-Event Notice of Reportable Events
 
Sec. 4043.32  Transfer of benefit liabilities.

    (a) Reportable event--(1) In general. A reportable event occurs for 
a plan when--
    (i) The plan or any other plan maintained by a person in the plan's 
controlled group makes a transfer of benefit liabilities to a person, or 
to a plan or plans maintained by a person or persons, that are not 
members of the transferor plan's controlled group; and
    (ii) The amount of benefit liabilities transferred, in conjunction 
with other benefit liabilities transferred during the 12-month period 
ending on the date of the transfer, is 3 percent or more of the plan's 
total benefit liabilities. Both the benefit liabilities transferred and 
the plan's total benefit liabilities shall be valued as of any one date 
in the plan year in which the transfer occurs, using actuarial 
assumptions that comply with section 414(l) of the Code.
    (2) Date of transfer. The date of transfer shall be determined on 
the basis of the facts and circumstances of the particular situation. 
For transfers subject to the requirements of section 414(l) of the Code, 
the date determined in accordance with 26 CFR 1.414(l)-1(b)(11) will be 
considered the date of transfer.
    (b) Initial information required. In addition to the information 
required in Sec. 4043.3(b), the notice shall include--
    (1) Identification of the transferee(s) and each contributing 
sponsor of each

[[Page 838]]

transferee plan by name and EIN/PN or EIN, as appropriate;
    (2) An explanation of the actuarial assumptions used in determining 
the value of benefit liabilities (and, if appropriate, the value of plan 
assets) for each transfer; and
    (3) An estimate of the amounts of assets and liabilities being 
transferred, and the number of participants whose benefits are 
transferred.
    (c) Waivers--(1) Complete plan transfer. Notice is waived if the 
transfer is a transfer of all of the transferor plan's benefit 
liabilities and assets to one other plan.
    (2) Transfer of less than 3 percent of assets. Notice is waived if 
the value of the assets being transferred--
    (i) Equals the present value of the accrued benefits (whether or not 
vested) being transferred, using actuarial assumptions that comply with 
section 414(l) of the Code; and
    (ii) In conjunction with other assets transferred during the same 
plan year, is less than 3 percent of the assets of the transferor plan 
as of at least one day in that year.
    (3) Section 414(l) safe harbor. Notice is waived if the transfer 
complies with section 414(l) of the Code using the actuarial assumptions 
prescribed for valuing benefits in trusteed plans under Sec. 4044.51-57 
of this chapter.
    (4) Fully funded plans. Notice is waived if the transfer complies 
with section 414(l) of the Code using reasonable actuarial assumptions 
and, after the transfer, the transferor and transferee plans are fully 
funded (using the actuarial assumptions prescribed for valuing benefits 
in trusteed plans under Sec. 4044.51-57) of this chapter.
    (d) Who must file. Only the plan administrator and contributing 
sponsor of the plan that made the transfer described in paragraph (a)(1) 
of this section are required to file a notice of a reportable event 
under this section. Notice by any other contributing sponsor or plan 
administrator is waived.