A situation that arises when a benefit plan lacks the funds needed to continue to pay out the benefits earned by employees. Distress termination allows a company to escape benefit responsibilities in order to avoid or delay the complete shutdown of the company.
Related information about distress termination:
- Distress Terminations
What is a distress termination? A: A plan that does not have enough money to pay all benefits owed participants and beneficiaries may be terminated only if the ...
- Distress Termination Definition | Investopedia
A thinning of an employee base that takes place when a company's benefits plan has insufficient funds to cover the expenses associated with paying the ...
- What is distress termination? definition and meaning
Definition of distress termination: A situation that arises when a benefit plan lacks ... Distress termination allows a company to escape benefit responsibilities in ...
- 29 CFR 4041.45 - Distress termination notice. | LII / Legal ...
The plan administrator must file with the PBGC a PBGC Form 601, Distress Termination Notice, Single-Employer Plan Termination, with Schedule EA-D, Distress ...
- Subpart C—Distress Termination Process :: PART 4041 - Justia
A plan may be terminated in a distress termination only if—. (1) The plan administrator issues a notice of intent to terminate to each affected party in accordance ...
- Plan Termination - Internal Revenue Service
In a distress termination, the date is established by the plan administrator and agreed to by the PBGC. • In an involuntary termination due to failure to meet ...
- Distress Terminations: It Isn't Just for Bankruptcy : Employee Benefits ...
Mar 25, 2008 ... I happen to be working a distress termination of a single employer defined benefit plan for a company that is not in bankruptcy or insolvent and ...
- PBGC-initiated Termination - American Society of Pension ...
Standard Termination – Plan Administrator initiates termination of a fully funded plan; Distress Termination – Plan Administrator initiates termination of an ...