U.S. Code of Federal Regulations
Regulations most recently checked for updates: Mar 28, 2023
The following terms are defined in § 4001.2 of this chapter: annuity, Code, EIN, ERISA, fair market value, guaranteed benefit, IRS, multiemployer plan, normal retirement age, PBGC, plan, plan sponsor, plan year, and PN. In addition, the following terms are defined for purposes of this part:
Actuarial valuation means a valuation of assets and liabilities performed by an enrolled actuary using the actuarial assumptions used for purposes of determining the charges and credits to the funding standard account under section 304 of ERISA and section 431 of the Code.
Advocate means the Participant and Plan Sponsor Advocate under section 4004 of ERISA.
Critical and declining status has the same meaning as the term has under section 305(b)(6) of ERISA and section 432(b)(6) of the Code.
Critical status has the same meaning as the term has under section 305(b)(2) of ERISA and section 432(b)(2) of the Code, and includes “critical and declining status” as defined in section 305(b)(6) of ERISA and section 432(b)(6) of the Code.
De minimis merger is defined in § 4231.7(b).
De minimis transfer is defined in § 4231.7(c).
Effective date means, with respect to a merger or transfer, the earlier of -
(1) The date on which one plan assumes liability for benefits accrued under another plan involved in the transaction; or
(2) The date on which one plan transfers assets to another plan involved in the transaction.
Facilitated merger means a merger of two or more multiemployer plans facilitated by PBGC under section 4231(e) of ERISA, including a merger that is facilitated with financial assistance under section 4231(e)(2) of ERISA.
Fair market value of assets has the same meaning as the term has for minimum funding purposes under section 304 of ERISA and section 431 of the Code.
Financial assistance means periodic or lump sum financial assistance payments from PBGC under section 4261 of ERISA.
Financial assistance merger means a merger facilitated by PBGC for which PBGC provides financial assistance (within the meaning of section 4261 of ERISA) under section 4231(e)(2) of ERISA.
Insolvent has the same meaning as insolvent under section 4245(b) of ERISA.
Merged plan means a plan that is the result of the merger of two or more multiemployer plans.
Merger means the combining of two or more plans into a single plan. For example, a consolidation of two plans into a new plan is a merger.
Significantly affected plan means a plan that -
(1) Transfers assets that equal or exceed 15 percent of its assets before the transfer,
(2) Receives a transfer of unfunded accrued benefits that equal or exceed 15 percent of its assets before the transfer,
(3) Is created by a spinoff from another plan, or
(4) Engages in a merger or transfer (other than a de minimis merger or transfer) either -
(i) After such plan has terminated by mass withdrawal under section 4041A(a)(2) of ERISA, or
(ii) With another plan that has so terminated.
Transfer and transfer of assets or liabilities mean a diminution of assets or liabilities with respect to one plan and the acquisition of these assets or the assumption of these liabilities by another plan or plans (including a plan that did not exist prior to the transfer). However, the shifting of assets or liabilities pursuant to a written reciprocity agreement between two multiemployer plans in which one plan assumes liabilities of another plan is not a transfer of assets or liabilities. In addition, the shifting of assets between several funding media used for a single plan (such as between trusts, between annuity contracts, or between trusts and annuity contracts) is not a transfer of assets or liabilities.
Unfunded accrued benefits means the excess of the present value of a plan's accrued benefits over the plan's fair market value of assets, determined on the basis of the actuarial valuation required under § 4231.5.